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Thursday 26 August 2021
Pensacola Insurance Company Owner Pleads Guilty on Wire Fraud and Money Laundering OffensesRead the Press Release
PENSACOLA, FLORIDA – John Thomas, 51, of Pensacola pled guilty yesterday on wire fraud and money laundering charges related to selling fraudulent insurance policies to his clients in exchange for approximately $4.8 million in insurance premium payments. Jason R. Coody, Acting United States Attorney for the Northern District of Florida, announced the guilty plea.
Court documents reflect that between September 2013 and February 2021, Thomas operated an insurance business known as Thomas Insurance, LLC. and defrauded customers through a type of insurance fraud known as premium diversion. Thomas executed this scheme by collecting insurance premiums from customers and keeping the funds for personal use instead of producing insurance policies. To conceal his acts, Thomas gave the customers fraudulent documents referencing insurance policies that did not exist.
This case resulted from a joint investigation by the Federal Bureau of Investigations and the Florida Department of Financial Services, Division of Investigative & Forensic Services, Bureau of Insurance Fraud. Work is ongoing to ensure all alleged victims are identified. If you are a client of Thomas Insurance, LLC. and wish to speak to an investigating agent regarding your policy, please contact FBI Jacksonville at 904-248-7000 or email [email protected], and reference “Thomas Insurance.” An FBI representative will respond with additional instructions.
Thomas’ sentencing hearing is scheduled for November 29, 2021, at 2:00 pm, at the United States District Courthouse in Pensacola before the Honorable District Judge T.K. Wetherell. Thomas faces a maximum term of 20 years’ imprisonment for wire fraud, a maximum term of 10 years’ imprisonment for money laundering, and a maximum term of 20 years’ imprisonment for money laundering to conceal proceeds of specified unlawful activity.
The case is being prosecuted by Assistant United States Attorney Jeffrey Tharp.
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 available 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.
Penobscot County Woman Sentenced for Theft of Money OrdersRead the Press Release
BANGOR, Maine: A Penobscot County woman was sentenced today in federal court for the theft and conversion of money orders, Acting U.S. Attorney Donald E. Clark announced.
U.S. District Judge Lance E. Walker sentenced Mellony Hafford, 37, to three years of probation. Hafford was also ordered to pay $4,177 in restitution to the U.S. Postal Service. She pleaded guilty in April 2021.
According to court records, between approximately May 2016 and April 2018, Hafford stole multiple money order forms while working as an employee of the U.S. Postal Service. She falsified several of the money order forms to conceal other fraudulent money orders she made out to herself, and to conceal her theft of cash that had been received in sales at the post office.
The U.S. Postal Service Office of the Inspector General and the U.S. Treasury Inspector General for Tax Administration (TIGTA) investigated this case. TIGTA’s involvement in the investigation was supervised by William Kalb, Special Agent in Charge, North East Field Division.
Pekin Man Sentenced to 30 Years in Prison for Attempted Production of Child PornographyRead the Press Release
PEORIA, Ill. – Sebastian Sale, 30, of Pekin, Illinois, was sentenced today to 30 years in federal prison following his conviction for attempted production of child pornography. U.S. District Court Judge James E. Shadid further ordered that Sale serve a lifetime term of supervised release upon completion of his prison sentence and register as a sex offender.
Sale, who pleaded guilty on April 8, 2021, admitted that he attempted to entice a person he believed to be a minor girl to film herself engaging in sexual conduct and to email the video to him.
In a separate but related case, Sale’s girlfriend, Rachel Miller, was sentenced on May 13, 2020, to serve 30 years in prison for sexual exploitation of a child. Specifically, Miller had recorded a video of herself engaging in sexual activity with a prepubescent male, and Sale later distributed that video through the internet.
In imposing a sentence above the advisory sentencing guideline range of 180 to 210 months, Judge Shadid noted the “sad,” “vile,” “disgusting,” and “unimaginable” conduct in which Sale had engaged. Judge Shadid also observed that the defendant’s conduct was hard to distinguish from that of Miller.
Both Sale and Miller have remained in the custody of the U.S. Marshals Service since their arrests in March 2020.
“Hopefully, the sentence Judge Shadid imposed will serve as a warning to others who may be inclined to harm minors and will make them think twice,“ said Acting United States Attorney Doug Quivey. “They will be caught. Along with our federal, state, and local law enforcement partners, the United States Attorney’s Office remains firmly committed to the Project Safe Childhood initiative, and we will do everything we can to both prevent and vigorously prosecute crimes against children.”
Agents from the U.S. Immigration and Customs Enforcement, Homeland Security Investigations, and the Washington, Ill., Police Department investigated the case. Supervisory Assistant U.S. Attorney Darilynn J. Knauss represented the government in the prosecution.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Patton Sentenced to 24 Months in Federal Prison for Role in May 2020 Salt Lake City Civil UnrestRead the Press Release
SALT LAKE CITY – Jackson Stuart Tamowski Patton, 27, of Salt Lake City, was sentenced to 24 months in federal prison for his role in the burning of a Salt Lake City police car during the May 2020 civil unrest in Salt Lake City. Patton was also ordered to pay $2,500 in restitution and to serve 36 months of supervised release after completing his prison sentence.
Patton previously pleaded guilty to one felony count of civil disorder in federal court in May of 2021. In the plea agreement, Patton admitted that, on May 30, 2020, he was protesting the killing of George Floyd when protesters turned violent and overturned a Salt Lake City Police Department patrol car. Patton admitted that law enforcement officers were lawfully engaged in the performance of their official duties during the commission of the civil disorder and that he participated in the burning of the overturned patrol car with the intent and purpose of obstructing, impeding, and interfering with law enforcement officers. Patton also admitted to moving a burning cloth into the interior of the overturned patrol car, which accelerated the burning of the patrol car.
In a sentencing memorandum filed by prosecutors, text messages sent by Patton during the days leading up to and during the protest were submitted to the court. On May 29, 2020, the day before the Salt Lake City protest, Patton texted the following to his circle of friends, “what time does the riot start tomorrow,” and “do [I] bring machetes to the riot tomorrow” and “we can all have one.” He then texted, “yes dude. I’m turning it into a riot.” On May 30, 2020, the day of the riot, Patton texted, “[I] need to figure out how to turn it into [a riot].” That same day, Patton texted “all I gotta do is sneakily throw a rock through a window” and immediately followed up with “of the police station” and that “[I]’m breaking things.” In a separate text string, Patton stated to a friend that “[I]’m fully going down there with the intention of breaking things. [I]f you don’t want to be near me I understand. [B]ut people need to know that [S]alt [L]ake is upset too.” After the civil disruption, Patton texted to a group of friends that “lol [ a friend] filmed me starting the fire…we just a [sic] [expletive] a cop car up with a cop in it…he literally had to curb hop his car to get out.” Patton later texted “look who started the fire lol.”
During the course of the prosecution, multiple terabytes of data, including video and still images, were submitted as evidence in the case. Sources of the evidence included multiple social media platforms, as well as evidence obtained from multiple state, federal, and local law enforcement agencies, and evidence received from private citizens.
On August 3, 2021 co-defendant Lateesha Richards was sentenced to 20 months in federal prison for her role in the burning of the patrol car. Co-defendants Latroi Devon Newbins and Larry Raynold Williams Jr. entered a plea of guilty and now await sentencing. Defendant Christopher Isidro Rojas’ case remains set for trial later this year.
Assistant U.S. Attorneys from the Utah U.S. Attorney’s Office prosecuted the case. Special Agents from the FBI Joint Terrorism Task Force, along with Special Agents from the ATF, and detectives and officers from the Salt Lake City Police Department, conducted the investigation.
Owner of Jet Charter Company Settles False Claims Act Allegations Regarding Misappropriation of Paycheck Protection Program LoanRead the Press Release
Seth A. Bernstein, the owner of jet charter company All in Jets LLC dba JetReady, located in Florida, has agreed to pay $287,055 to settle allegations that he misappropriated PaycheckProtection Program (PPP) loan proceeds for his personal expenses. JetReady is a jet charter operator with its principal place of business in Fort Lauderdale, Florida.
The United States alleged that Bernstein, on behalf of JetReady, applied for and received a PPP loan totaling $1,173,382 in April 2020. Within a day of receiving the loan proceeds, Bernstein allegedly diverted $98,929 of the funds to pay for personal, non-company related expenses. JetReady has since filed for bankruptcy in the Southern District of New York.
“Paycheck Protection Program loans were intended to provide critical relief to small businesses so that they could retain employees and keep their doors open,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “We will ensure that those who misused these taxpayer-funded loans and denied other eligible businesses access to such assistance are held accountable.”
“The Paycheck Protection Program was enacted over a year ago to help small businesses and their employees financially survive the COVID-19 pandemic,” said Acting U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida. “Since this and other programs under the CARES Act were initiated, our Office has prioritized investigating and bringing to justice those who illegally seek to benefit from the global health crisis and the programs put in place to help those in need.”
“The Paycheck Protection Program is intended to provide a lifeline to the nation’s small businesses and its employees” said Inspector General Hannibal “Mike” Ware of the SBA Office of Inspector General (OIG). “OIG will aggressively investigate allegations of wrongdoing in SBA’s pandemic response programs. I want to thank the Department of Justice for its dedication to achieving this settlement.”
“The result in this case is the product of enhanced efforts by federal agencies, such as the Small Business Administration working with Department of Justice and other federal law enforcement agencies, to detect Paycheck Protection Program abuses, pursue individuals and companies that engage in such abuses and protect the integrity of the PPP program,” said SBA General Counsel Peggy Delinois Hamilton.
Congress enacted the PPP on March 29, 2020, as part of the CARES Act, to provide emergency financial support to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. The CARES Act authorized billions in loans to small businesses struggling to pay employees and other business expenses. Under the PPP, eligible businesses could obtain loans guaranteed by the Small Business Administration (SBA). Businesses were required to spend loan proceeds for employee compensation, rent or mortgage, and other specified expenses and, depending on their use of the loan proceeds, could qualify for loan forgiveness, up to the full amount of the loan.
Today’s civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Victoria Hablitzel, a former JetReady employee. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. Ms. Hablitzel will receive $57,411. The case is captioned U.S. ex rel. Hablitzel v. All in Jets, LLC and Seth A. Bernstein, No. 20-cv-61410 (S.D. Fla.).
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Southern District of Florida, with assistance from the SBA’s Office of General Counsel and OIG.
This matter was handled by Trial Attorney Jonathan Gold of the Civil Division and Assistant U.S. Attorney James A. Weinkle of the Southern District of Florida.
On May 17, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Orange County Man Once Affiliated with Youth Soccer League Indicted for Possessing, Distributing and Producing Child PornographyRead the Press Release
SANTA ANA, California – A federal grand jury has returned an indictment charging a Huntington Beach man with child exploitation offenses, including the possession, distribution and production of child pornography, the Justice Department announced today.
Mark Phillip Oster, 61, who served as a referee and a coach in the American Youth Soccer Organization from 2015 through 2021, was named in a four-count indictment filed Wednesday. The indictment charges Oster with two counts of producing child pornography, one count of distributing child pornography and one count of possessing child pornography.
Oster has been in federal custody since July 30, when FBI agents arrested him pursuant to a criminal complaint that charged him with possession of child pornography.
During this investigation, the FBI uncovered evidence indicating Oster engaged in illegal conduct with minor victims.
Anyone who has information regarding the case against Oster or who may know someone victimized by the defendant is requested to contact the FBI’s Los Angeles Field Office at (310) 477-6565 or through the FBI online tip portal. Identified victims may be eligible for certain services and rights under federal and/or state law.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Oster is scheduled to be arraigned on the indictment in United States District Court in Santa Ana on September 7.
If he were to be convicted of the four counts in the indictment, Oster would face a statutory maximum sentence of 100 years in federal prison. Additionally, each count production of child pornography carries a mandatory minimum sentence of 15 years in federal prison.
Assistant United States Attorney Andrew Beshai of the Santa Ana Branch Office and Trial Attorney Kyle Reynolds of the Department of Justice’s Child Exploitation and Obscenity Section are prosecuting this case.
Operation Washout River City Announced, Federal Charges Pending in Project Safe Neighborhoods OperationRead the Press Release
COLUMBUS, Ga. – The results from a four-day multi-agency operation to curb violent crime in Columbus, Georgia, were announced at a press conference held today, with dozens of repeat violent offenders and gang members taken into custody, along with firearms and drugs.
Acting U.S. Attorney for the Middle District of Georgia Peter D. Leary joined with Muscogee County Sheriff Greg Countryman and Columbus Police Chief Freddie Blackmon to announce the results of “Operation Washout River City,” a Department of Justice Project Safe Neighborhoods initiative. Conducted by the U.S. Marshals Service-Southeast Regional Fugitive Task Force (USMS SERFTF), FBI, ATF, DEA, GBI, Georgia Department of Community Supervision (DCS), Georgia State Patrol (GPS), Organized Crime and Gang Unit-Atlanta (OCAG), Muscogee County Sheriff’s Office and Columbus Police Department, with assistance from the U.S. Attorney’s Office for the Middle District of Georgia, more than 50 investigators executed search warrants resulting in 57 arrests between August 9-12, clearing a total of 128 active warrants. The individuals taken into custody as part of the operation are gang members and/or repeat violent offenders, with criminal state charges including homicide, kidnapping, rape, possession of illegal firearms and aggravated assault, among others. During the operation, law enforcement seized 27 firearms and 1.885 kilograms of illegal drugs, including methamphetamine and cocaine. These cases are currently under federal investigation and no federal charges have been filed at this time.
“Reducing violent crime in Columbus and in every city across the Middle District of Georgia is the highest priority; there is nothing more important than the safety of our citizens,” said Acting U.S. Attorney Peter Leary. “The U.S. Attorney’s Office will continue to direct our federal resources toward the most significant drivers of violent crime in each community, working directly with community stakeholders to strategically identify the most pressing criminal issues and take action.”
“The violent crime initiative held between August 9 – 12 certainly disrupted criminal activity in the Columbus area for that week, but I hope that the impact of the operation is to deter crime for many weeks to come,” said U.S. Marshal John Cary Bittick. “Columbus is a beautiful city and the people who live and work here deserve a community that they can be proud to call home. I am committed to working with our local, state and federal law enforcement partners to support Project Safe Neighborhoods and I will support any initiative that targets violent crime in the Middle District of Georgia.”
“Law enforcement operations such as this promotes inter-agency cooperation and networking, acts as force multipliers, extends our reach beyond the borders of Muscogee County and enhances the overall effectiveness of our daily operations. This particular operation gave the ability to remove violent offenders from our community and bring those responsible for their respective crimes before the courts, so that victims and family members can see justice served by the courts on their behalf,” said Muscogee County Sheriff Greg Countryman. “Although we recognize that we cannot arrest our way out of current circumstances, we also recognize that we cannot sit idly by and allow for lawlessness to maintain a foothold within Muscogee County either. Those that contribute to the demise of neighborhoods by engaging in violence and illicit activity can count on similar visits during future operations of this sort”.
“Operation Washout River City was utilized to target gang members and other violent criminal offenders. In order to maintain a safe city, we will continue to target gang members and those who commit violent criminal offenses. This behavior is not acceptable and will not be tolerated,” said Columbus Police Chief Freddie Blackmon.
Operation Washout River City was conducted 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.
In addition, Operation Washout River City is a response to The Department of Justice’s Comprehensive Violent Crime Reduction Strategy announced on May 26, 2021. The comprehensive strategy supports local communities in preventing, investigating and prosecuting gun violence and other violent crime—and requires U.S. Attorneys’ offices to work with federal, state, local and tribal law enforcement, as well as the communities they serve, to address the most significant drivers of violence in their districts.
Criminal charges are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Ontario Man Pleads Guilty to Distribution of MethamphetamineRead the Press Release
BOISE – Oliver “Juice” Yardley, 45, of Ontario, Oregon, pleaded guilty to distributing methamphetamine, Acting U.S. Attorney Rafael M. Gonzalez, Jr. announced today. Yardley was indicted by a federal grand jury in Boise on April 13, 2021.
According to court records, on August 26, 2019, Yardley and his wife, Ashley Cates Yardley, 33, sold approximately two ounces of methamphetamine to another person in a parking lot in Fruitland, Idaho. Ashely Yardley was indicted by a federal grand jury in Boise on September 10, 2020. On July 30, 2021, she was sentenced to five years in federal prison followed by four years of supervised release by Chief U.S. District Judge David C. Nye.
Sentencing for Oliver Yardley is set for November 10, 2021, before Senior U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise. He faces a statutory mandatory minimum sentence of at least five years and up to life in federal prison, a $10 million fine, and at least four years of supervised release. The federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Gonzalez credited the efforts of the Treasure Valley Metro Violent Crimes Task Force, which led to charges. The Task Force is comprised of federal, state, and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Ada County Sheriff’s Office; Boise Police Department; Caldwell Police Department; Canyon County Sheriff’s Office; Meridian Police Department; Nampa Police Department; and Idaho Department of Correction, Bureau of Probation and Parole. “The ‘Metro’ task force is a model for multijurisdictional cooperative law enforcement investigations,” Gonzalez added.
This case was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit www.treasurevalleypartners.org.
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Olean Woman Sentenced for Selling FentanylRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy Jr. announced today that Mary Kettle, 38, of Olean, NY, who was convicted of conspiring to possess with intent to distribute, and distributing, butyryl fentanyl, was sentenced to serve four years’ probation by U.S. District Judge John L. Sinatra, Jr.
Assistant U.S. Attorney Joshua A. Violanti, who handled the case, stated that between July 2018 and December 30, 2018, the defendant conspired with Erin Cameron and others sell butyryl fentanyl. Erin Cameron was previously convicted and is awaiting sentencing.
On October 22, 2018, the Bureau of Indian Affairs, Drug Enforcement Administration, and the Southern Tier Regional Drug Task Force set up a controlled purchase of butyryl fentanyl with Erin Cameron. The delivery of the butyryl fentanyl was made by the defendant. A second controlled purchase of butyryl fentanyl was made on February 6, 2019, and once again Kettle made the delivery.
The sentencing is the result of an investigation by the Bureau of Indian Affairs, under the direction of Jason Thompson, Associate Director of the Office of Justice Services; the Southern Regional Drug Task Force, under the direction of Cattaraugus County Sheriff’s Office and Sheriff Timothy Whitcomb; and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
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Oklahoma City Man Charged with Child Pornography CrimesRead the Press Release
OKLAHOMA CITY — An Oklahoma City man has been arrested and charged with attempted receipt of child pornography and attempted coercion and enticement of a minor. GREG ALLEN HENKE, 40, was charged by criminal complaint on May 14, 2021, announced Acting U.S. Attorney Robert J. Troester. He was arrested and has been ordered detained in federal custody since May 14, 2021.
On June 1, 2021, an Indictment returned by a federal grand jury charged Mr. Henke with attempted receipt of child pornography and attempted coercion and enticement of a minor. The Indictment alleges that on or about May 10, 2021, Mr. Henke knowingly attempted to receive child pornography using a means and facility of interstate and foreign commerce. The Indictment further alleges that, between April 1, 2021, and on or about May 13, 2021, Mr. Henke using a cell phone and the internet, knowingly attempted to persuade, induce, entice, and coerce a minor to engage in sexual activity for which any person can be charged with a criminal offense.
The FBI is seeking to identify potential additional victims. Anyone with additional information to report about Greg Allen Henke can call the FBI at (405) 290-7770.
This case is the result of an investigation by the Federal Bureau of Investigation - Oklahoma City Field Division. Assistant U.S. Attorney Bow Bottomly is prosecuting the case.
The public is reminded that these charges are merely allegations and that the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to public records for more information.
North Carolina Woman Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – A North Carolina woman pleaded guilty today to a federal drug crime.
According to court documents, law enforcement officers conducted a traffic stop on the vehicle of Aletha Mae Lemon, 59, near Marmet in March 2021 and seized nearly five pounds of a mixture or substance containing methamphetamine from her vehicle.
Lemon pleaded guilty to possession with intent to distribute 50 grams or more of methamphetamine and faces a mandatory minimum of five years and up to 40 years in prison when she is sentenced on November 22, 2021.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA).
United States District Judge Joseph R. Goodwin presided over the hearing. Assistant U.S. Attorney Negar M. Kordestani is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-00102.
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Niagara Falls Man Sentenced on Cocaine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Dante Dolson, 52, of Niagara Falls, NY, who was convicted of conspiring to possess with intent to distribute, and to distribute, five kilograms or more of cocaine, was sentenced to serve 97 months imprisonment and supervised release for a term of two years by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorneys Joshua A. Violanti and Misha A. Coulson who handled the case, stated that between December 2016, and August 24, 2017, the defendant conspired with others to sell cocaine in the Western District of New York On at least four occasions, Dolson coordinated the transportation of 10 kilograms of cocaine to the Niagara Falls/Buffalo, NY area for distribution. On each occasion, the defendant worked with co-conspirators to conceal the cocaine within a “trap” hidden under the hood of the vehicle used to transport the cocaine in order to avoid detection by law enforcement.
On August 24, 2017, members of the Niagara Falls Police Department executed a New York State search warrant at a residence on Independence Avenue in Niagara Falls, the associated detached garage, and a vehicle registered to Dolson. The location was the residence of a relative of Dolson. When investigators entered the detached garage, the defendant was observed rolling beneath the garage door to flee from the area. Investigators also noticed that the hood of a minivan in the garage was ajar and a socket wrench was attached to a bolt securing one of the windshield wipers. The defendant had been attempting to open the “trap” contained in the engine compartment of the vehicle and concealed behind a plastic shield underneath the wiper area.
Investigators recovered five full kilos and two half-kilo sized bricks of suspected cocaine wrapped in black plastic sitting on top of the seat cushions of a couch positioned along one of the walls within the garage. $5,000 in cash was also found in another vehicle on the property.
The sentencing is the result of an investigation by the Niagara Falls Police Department, under the direction of Chief John Faso, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
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New Orleans Man Pleads Guilty to Distributing More Than 1 Kilogram of Heroin and Agrees to Forfeit a Mercedes Benz and Six Pieces of Diamond Encrusted Jewelry, Including A Rolex, All Purchased with Heroin ProceedsRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that ARTHUR JOHNSON, age 44, a resident of New Orleans, Louisiana, pled guilty on August 24, 2021 to conspiring to distribute one kilogram or more of heroin. JOHNSON is facing a mandatory minimum sentence of 10 years’ imprisonment up to a maximum sentence of life imprisonment, a possible fine of up to $10,000,000, and at least five years of supervised release upon his release from prison. JOHNSON must also pay a mandatory $100 special assessment cost.
According to court records, on December 27, 2017, agents intercepted communications between JOHNSON, a New Orleans based heroin dealer, and Ricky Redd, a Chicago-based drug courier. In these communications, JOHNSON and Redd discussed a pending delivery of heroin. Redd was driving that day from Chicago to New Orleans to give JOHNSON a bag containing approximately three kilograms of heroin.
Later that same day, surveillance agents observed JOHNSON and Redd met twice at a Holiday Inn Hotel in New Orleans. During the first meeting, Redd gave JOHNSON a red bag containing approximately three kilograms of heroin. During the second meeting, JOHNSON gave Redd approximately $187,000. Redd was to earn a small amount of the money that JOHNSON paid him.
The next day, December 28, 2017, agents conducted a traffic stop of JOHNSON. JOHNSON was placed under arrest and agents seized three brick chucks of heroin and eleven bags of heroin, totaling 1.3 kilograms of heroin from his home in New Orleans East. Agents also seized from the home a digital scale, six cell phones, over $11,000 in cash, a money counter, a kilogram press, two sealed GNC Inositol bottles, which are used as “cutting agents” to dilute heroin, and numerous items of jewelry, including diamond-encrusted necklaces and a diamond-encrusted Rolex watch.
The evidence against JOHNSON includes numerous intercepted communications, including jail calls, physical surveillance, witness statements, and controlled purchases of heroin. Between April 2017 and December 2017, agents identified thirteen cellular phones used by JOHNSON. JOHNSON’s practice was to purchase a disposable “burner” cell phone approximately every 30 days and notify his drug associates via text when he obtained a new phone number. JOHNSON would use the new phone in furtherance of his drug operation. After thirty days, JOHNSON would discard the phone and immediately obtain a new phone. JOHNSON, who previously had been convicted of federal drug charges, engaged in this practice to thwart law enforcement and avoid wiretaps.
Pursuant to the plea agreement, JOHNSON agreed to forfeit a 2017 Mercedes Benz, $11,543.00 in cash, and jewelry, including a Rolex watch covered in approximately 17.45 carats of diamonds, a gold tennis necklace with approximately 25.67 carats of diamonds, a ninja shaped pendant covered with the phrases “XXO” and “Never Hesitate” and which is attached to a crown with approximately 10 carats of diamonds, a gold crown pendant covered in approximately 5.42 carat of diamonds, a gold tennis necklace with approximately 4.68 carats of diamonds, and a gold and diamond rope necklace.
U.S. District Judge Susie Morgan will sentence JOHNSON on December 1, 2021. JOHNSON and six other defendants were charged in 2018 with conspiring to distribute heroin in the New Orleans area. All but one of these defendants have pled guilty
U.S. Attorney Evans praised the work of the FBI’s New Orleans Gang Task Force in investigating this matter. Assistant United States Attorneys David Howard Sinkman and Brandon Long are in charge of the prosecution.
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New Hanover County Gang Member Receives 115 Months for Gun OffenseRead the Press Release
NEW BERN, N.C. – A Wilmington man was sentenced today to 115 months in prison and 3 years of supervised release for possession of a firearm by a convicted felon. On October 17, 2019, Quaneik Kasson Allen pled guilty to the charge.
According to court documents and other information presented in court, Allen, 23, illegally possessed a firearm in connection with an April 21, 2019 shooting incident. Allen, a validated member of the Double I Bloods street gang, was on post-release supervision from a prior state felony conviction for possession of a stolen firearm. The incident – captured on Wilmington Housing Authority surveillance video – took place in the Houston Moore housing complex. Co-defendant, Antonio Spencer (previously sentenced), brutally assaulted a pregnant female who was ultimately able to flee the scene. A short time later, Allen approached Spencer and the two fought. During the struggle, a gun Spencer had in his waistband, dropped to the ground. Allen retrieved the gun and used it to shoot Spencer five times at close range. Spencer was treated and released from the hospital two days later. Responding officers from Wilmington Police Department stopped Allen while leaving the scene and recovered a .38 caliber revolver with five spent shell casings and a .380 caliber handgun.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Wilmington Police Department investigated the case and Assistant U.S. Attorney Bryan Stephany prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The United States Attorney’s Office for the Eastern District of North Carolina implements the PSN Program through its Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:19-CR-00092-FL.
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Minnesota Man Sentenced for Unlawful Taking of Golden EagleRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Wheaton, Minnesota, man convicted of Unlawful Taking of Golden Eagle was sentenced on August 23, 2021, by U.S. Magistrate Judge Mark A. Moreno.
Richard Michael Grohs, age 69, was sentenced to three years of probation, three years no trapping, restitution in the amount of $10,000 to the National Fish and Wildlife Foundation, and a special assessment to the Federal Crime Victims Fund in the amount of $25.
Grohs was indicted by a federal grand jury on October 14, 2020. He pled guilty on August 23, 2021.
The conviction stemmed from an incident that occurred between April and May of 2018, in Roberts County, South Dakota, where Grohs was illegally trapping and snared a golden eagle resulting in its death.
This case was investigated by the U.S. Fish and Wildlife Service. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Grohs was released following sentencing.
Minnesota Man Pleads Guilty to Attempted Enticement of a Minor After Traveling to Florida to Engage in Criminal Sexual ActivityRead the Press Release
Miami, Florida – A 56-year-old man living in Minnesota pled guilty today in federal district court in West Palm Beach to attempted enticement of a minor to engage in criminal sexual activity.
Richard Martin Lehner admitted that, over the course of three months, he communicated with an individual he thought was a 15-year-old girl on an online dating application. Lehner repeatedly communicated with her through text and voice message, sending sexually explicit messages in order to convince her to engage in sexual activities with him. He then booked a flight from Minnesota to Florida and booked a hotel room in Palm Beach Gardens, Florida, where he believed the girl lived. When Lehner arrived in Florida, he purchased condoms and drove to a restaurant where he planned to meet the girl, to then take her to his hotel room for sex. Law enforcement officers arrested Lehner when he arrived at the restaurant.
Lehner pled guilty to one count of attempted enticement of a minor to engage in criminal sexual activity. Sentencing for Lehner is set for November 3, at 10:30 a.m., before U.S. District Judge Donald Middlebrooks. Lehner faces a mandatory minimum of ten years in prison up to a maximum of life in prison.
Juan Antonio Gonzalez, Acting U.S. Attorney for the Southern District of Florida, and Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations (HSI), Miami Field Office, announced the guilty plea.
HSI Miami, West Palm Beach Office, and the Palm Beach County Sheriff’s Office investigated the case. Assistant U.S. Attorney Shannon O’Shea Darsch is prosecuting this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov under case number 21-cr-80094.
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Mexican National Sentenced to 15 Years for Drug Trafficking, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – A Mexican national was sentenced in federal court today for illegally selling more than a dozen firearms and a large amount of methamphetamine and heroin to undercover federal agents.
Heladio Lezama-Palma, 36, a citizen of Mexico who was residing in Kansas City, Missouri, was sentenced by U.S. District Judge Brian C. Wimes to 15 years in federal prison without parole. Lezama-Palma, who has been in federal custody since his arrest, was remanded to the custody of the U.S. Marshal immediately after the hearing to begin serving his sentence.
On April 15, 2021, Lezama-Palma pleaded guilty to one count of distributing heroin, one count of possessing methamphetamine with the intent to distribute, one count of possessing firearms in furtherance of a drug-trafficking crime, one count of being an illegal alien in possession of firearms, and one count of illegally reentering the United States after having been deported.
Lezama-Palma admitted that he sold firearms and illegal drugs to two undercover Homeland Security Investigations (HSI) special agents on three separate occasions between July 2, 2018, and Oct. 30, 2018. Among those transactions, Lezama-Palma sold 13.38 grams of heroin to an undercover agent.
Lezama-Palma was arrested on Nov. 7, 2018, when he arrived to conduct an arranged fourth transaction. Lezama-Palma had agreed to sell two kilograms of methamphetamine and seven firearms for $20,000 to an undercover federal agent. The transaction was planned at a grocery store parking lot in Kansas City, Mo. Kansas City police officers arrested Lezama-Palma when he arrived at the parking lot. Officers searched his Cadillac Escalade and found a black duffle bag that contained approximately two kilograms of methamphetamine, five pistols and two rifles (a Taurus 9mm pistol, a Mellennium .40-caliber pistol, a Glock 9mm pistol, a Glock .40-caliber pistol, a Smith & Wesson 9mm pistol, a Mac 90 Sporter 7.62mm rifle, and a DTI-15 5.56mm rifle).
In addition to the conduct to which he specifically pleaded guilty, Lezama-Palma also admitted that he sold three firearms to an undercover HSI agent in Kansas on July 2, 2018. At that time, he told the undercover agent he could sell kilogram-quantities of methamphetamine for $7,500 per kilogram. Lezama-Palma also admitted that he sold approximately a kilogram of pure methamphetamine to an undercover HSI agent on July 31, 2018.
Lezama-Palma had been legally removed from the United States on June 8, 2012, but unlawfully reentered the country. According to court documents, he was ordered to voluntarily leave the United States on two other occasions.
This case was prosecuted by Assistant U.S. Attorneys Brent Venneman and Gregg R. Coonrod. It was investigated by Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Kansas City, Mo., Police Department.
Methamphetamine trafficker sentenced to 15 years in prisonRead the Press Release
BILLINGS — A Michigan man who admitted bringing pounds of methamphetamine to Montana for redistribution was sentenced today to 15 years in prison to be followed by five years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
Michael Troy Webb, 38, of Charlotte, Michigan, pleaded guilty on April 2 to possession with intent to distribute meth.
U.S. District Judge Susan P. Watters presided.
In court documents filed in the case the government alleged that in May 2019, the Missoula Police Department learned Webb was selling meth and heroin in Montana and had been seen with about six pounds of meth and three pounds of heroin. Webb, and his girlfriend and co-defendant, Kimberly Fanslau, were travelling through the state selling the drugs and were bound for Billings. Law enforcement further learned that Webb had been seen with about 11 pounds of meth in the prior weeks. Agents located Webb and Fanslau at a Billings hotel and served a search warrant on their room. Webb and Fanslau were both detained. Agents found $4,850 on Webb’s person and approximately four pounds of meth and 197 grams of heroin in the room. Four pounds of meth is the equivalent of about 14,496 doses. Webb told officers he or Fanslau had brought drugs to Montana at least five times, with each occasion involving several pounds of meth. Fanslau pleaded guilty and is pending sentencing.
Assistant U.S. Attorney Julie R. Patten prosecuted the case, which was investigated by the Drug Enforcement Administration.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Member of Syndicato de Nuevo Mexico prison gang sentenced to 17 years in prison for racketeeringRead the Press Release
ALBUQUERQUE, N.M. – Jonathan James “Baby G” Gomez, 39, of Albuquerque, New Mexico, was sentenced on Aug. 23 to 17 years and seven months in prison for racketeering conspiracy. Gomez pleaded guilty on Sept. 25, 2020.
According to court records, from 2004 to September of 2019, Gomez was a member of the Syndicato de Nuevo Mexico (SNM) prison gang while in the New Mexico Corrections Department prison system. Gomez acknowledged that SNM is an ongoing criminal organization whose members, prospects and associates engage in acts of violence and other criminal activity including murder, kidnapping and conspiracy to manufacture and distribute narcotics. Gomez admitted to his participation in SNM’s racketeering conspiracy.
Gomez’s association with SNM and several of the acts committed by Gomez as part of the SNM racketeering conspiracy are detailed in court records. Among those acts were assaulting a corrections officer, refusing to be searched, being in possession of controlled substances, ordering assaults on an inmate, maintaining names and addresses of SNM members, and ordered an individual identified as “B.C.” to murder another person identified as “V.C.”
Upon his release from prison, Gomez will be subject to three years of supervised release.
The FBI and the New Mexico Corrections Department investigated this case. The Las Cruces Office of the U.S. Attorney for the District of New Mexico prosecuted the case.
Massachusetts Man Pleads Guilty to Participating in Fentanyl Trafficking ConspiracyRead the Press Release
CONCORD - Eduardo Contreras, 31, of Lawrence, Massachusetts, pleaded guilty in federal court to conspiracy to distribute fentanyl, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, between approximately 2015 and November 30, 2017, Contreras conspired with a New Hampshire-based fentanyl distributor to distribute fentanyl. Contreras provided the fentanyl to the New Hampshire trafficker for distribution to customers in New Hampshire and Maine. On several occasions, Contreras used couriers to transport fentanyl and the proceeds of drug transactions.
Contreras is scheduled to be sentenced on December 2, 2021.
“Although fentanyl can be lethal, drug traffickers seek to profit from selling this dangerous substance to the residents of New Hampshire,” said Acting U.S. Attorney Farley. “Law enforcement officers are working together to stop the flow of fentanyl into the Granite State. As this case demonstrates, fentanyl traffickers who distribute this deadly drug in New Hampshire will be held accountable for their criminal behavior.”
This matter was investigated by the Drug Enforcement Administration, Homeland Security Investigations, the Manchester Police Department, the Tilton Police Department, the Massachusetts State Police and the New Hampshire State Police. The case is being prosecuted by Assistant U.S. Attorneys Jennifer Cole Davis and Seth R. Aframe.
This investigation 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.
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Marin Man Charged with Firearms Trafficking and Being A Felon in Possession of A FirearmRead the Press Release
SAN FRANCISCO – James William Palmer was arrested yesterday and arraigned today on charges of engaging in the unlicensed manufacturing and dealing of firearms and of being a felon in possession of a firearm, announced Acting United States Attorney Stephanie M. Hinds and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Patrick T. Gorman.
In a federal criminal complaint unsealed today, Palmer, 36, of Mill Valley, is alleged to be an unlicensed manufacturer and dealer of privately manufactured firearms and a convicted felon who possessed a firearm. The complaint charges that Palmer was manufacturing and selling firearms from as early as May 2020 through to January 2021. Law enforcement began investigating Palmer for firearms violations after examining text messages involving Palmer in an unrelated investigation. On January 27, 2021, police detained Palmer and found him in possession of a Glock semi-automatic .45 caliber pistol and two loaded ammunition clips. On the same date, police seized a number of items from Palmer’s home related to firearms manufacturing and trafficking.
This case follows the U.S. Department of Justice’s launch in five key regions of Cross-Jurisdictional Firearms Trafficking Strike Forces that are focused on disrupting illegal firearms trafficking. One of the five Strike Forces was launched here, in the San Francisco Greater Bay Area and Sacramento Region. The Strike Force identifies sources of illegally trafficked firearms and disrupts straw purchasing as well as firearms trafficking networks by collaborating in cross-jurisdictional efforts that include multiple federal agencies and multiple states and their local law enforcement agencies.
Palmer made his initial appearance to face these charges today in federal court before United States Magistrate Judge Joseph C. Spero. He was released on bond and is scheduled to return to court for his next appearance on October 7, 2021.
Palmer is charged with one count of unlicensed firearms manufacturing and dealing in violation of 18 U.S.C. § 922(a)(1)(A) and with one count of being a felon in possession of a firearm in violation of 18 U.S.C. § 922(g)(1). Each count carries a maximum sentence of 10 years imprisonment and a fine of $250,000. Any sentence following conviction, however, would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
A complaint merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Assistant U.S. Attorney Alexis James is prosecuting the case with the assistance of Maribel Gallegos. The prosecution is the result of an investigation by ATF and the Marin County Sheriff’s Office.
Manchester Man Sentenced to 60 Months for Fentanyl TraffickingRead the Press Release
CONCORD - Francis Harrington, 39, of Manchester, was sentenced to 60 months in federal prison for possession of fentanyl with intent to distribute, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on August 22, 2019, a Manchester police officer responded to a report of two males “passed out” in a parked vehicle at a restaurant. Harrington was the passenger in the vehicle. After being engaged by medical personnel, the officer observed Harrington moving slowly and reaching around the console and floor area of the vehicle. Harrington was ordered out of the vehicle and to put his hands on his head. The officer performed a protective pat search and located a large bulge in the waistband of Harrington’s pants. When the officer asked Harrington about the object, Harrington replied “drugs.” The officer then removed the object, which was a bag containing 198 grams of fentanyl. He was arrested at the scene.
Harrington previously pleaded guilty on May 18, 2021.
“Drug dealers have been flooding our community with large amounts of fentanyl and the results have been tragic and deadly,” said Acting U.S. Attorney Farley. “We continue to work closely with the Manchester Police Department to identify and prosecute the fentanyl dealers who are jeopardizing public safety in the Queen City.”
This matter was investigated by the Manchester Police Department. The case was prosecuted by Assistant U.S. Attorney Joachim H. Barth.
This case is part of Operation Synthetic Opioid Surge (S.O.S.). In July of 2018, Attorney General Jeff Sessions announced the creation of S.O.S., which is being implemented in the District of New Hampshire and nine other federal districts. The goal of S.O.S. is to combat the large number of overdoses and deaths associated with fentanyl and other synthetic opioids. In New Hampshire, the U.S. Attorney’s Office is focusing its efforts on prosecuting synthetic opioid trafficking cases arising in Hillsborough County, which includes Manchester and Nashua.
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Maine Woman Pleads Guilty to Participating in North Shore Drug ConspiracyRead the Press Release
BOSTON – A Maine woman pleaded guilty yesterday in federal court in Boston to charges of conspiracy to distribute and possess with intent to distribute, controlled substances.
Shelby Kleffman, 36, pleaded guilty today to one count of conspiracy to manufacture, distribute and to possess with intent to distribute 40 grams or more of fentanyl, methamphetamine, cocaine, cocaine base, and other controlled substances. U.S. Chief District Court Judge F. Dennis Saylor IV scheduled sentencing for Jan. 5, 2022. Kleffman was charged on March 26, 2021.
Kleffman admitted to her role in a drug trafficking conspiracy between Massachusetts and Maine. Kleffman operated as a Maine-based dealer who received large quantities of fentanyl, cocaine, cocaine base and methamphetamine from Massachusetts-based gang members, which she would then distribute locally to customers in Maine.
The charge of conspiracy to distribute and possess a controlled substance with intent to distribute provides for a sentence of at least five years and up to 40 years in prison, at least four years and up to life of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division, made the announcement today. Assistance was provided by the U.S. Attorney’s Office for the District of Maine; the Maine Drug Enforcement Agency; the Essex County and Hancock County Sheriff’s Departments; and the Lynn, Salem, Malden, Bangor (Maine), Portland (Maine) and Westbrook (Maine) Police Departments. Assistant U.S. Attorneys Philip A. Mallard and Sarah Hoefle of Mendell’s Organized Crime and Gang Unit are prosecuting the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Maine Man Sentenced to 84 Months in Federal Prison for Methamphetamine TraffickingRead the Press Release
CONCORD - Michael Mowry, 44, of Acton, Maine was sentenced to 84 months in federal prison for possession of methamphetamine with intent to distribute, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, in May of 2018, a New Hampshire State Police trooper pulled over a vehicle on I-95 in Portsmouth for multiple traffic violations. Mowry was a passenger in the vehicle. The trooper developed suspicions about drug activity and called for a narcotics detection dog. The dog alerted to the odor of narcotics. After the trooper advised the driver of the detection of narcotics, Mowry admitted to the trooper that there was methamphetamine in a backpack in the rear seat. The backpack contained 755 grams of methamphetamine.
Mowry previously pled guilty on May 21, 2020. After the completion of his sentence, Mowry will be under five years of supervised release.
“Methamphetamine is a highly dangerous drug that is causing increasing damage to health and safety in New Hampshire,” said Acting U.S. Attorney Farley. “Together with our law enforcement partners, we are working to identify and prosecute the drug dealers who are distributing methamphetamine in the Granite State. As this case demonstrates, methamphetamine traffickers will be caught and serve substantial prison sentences for their unlawful conduct.”
“As methamphetamine seizures are on the rise DEA stands committed to keeping this highly addictive drug out of New Hampshire,” said DEA Special Agent in Charge Brian D. Boyle. “Today’s sentence not only holds Mr. Mowry accountable for his crimes but serves as a warning to those who attempt to bring this poison to the Granite State.”
This matter was investigated by the Drug Enforcement Administration and the New Hampshire State Police. The case is being prosecuted by Assistant U.S. Attorney Anna Dronzek.
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MDC corrections officer in court for possession of child pornographyRead the Press Release
ALBUQUERQUE, N.M. – Craig Barnish, 43, of Rio Rancho, New Mexico, made an initial appearance in federal court today facing a charge of possession of child pornography. Barnish will remain in custody pending a detention hearing scheduled for Aug. 27.
According to a criminal complaint, in January of 2021, Barnish, a corrections officer at the Metropolitan Detention Center, allegedly participated in a group chat on the Kik social media app in which he allegedly commented on two videos depicting a nude child. Later that day in the same Kik group chat, Barnish allegedly uploaded a video depicting child pornography.
After Barnish was identified as the user participating in the Kik group chat, he allegedly possessed multiple video files on his cellphone depicting children engaged in sexually explicit conduct.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Barnish faces up to 20 years in prison.
The FBI Albuquerque Field Office is investigating this case with assistance from the Regional Computer Forensic Laboratory.
The United States Attorney’s Office for the District of New Mexico is prosecuting the case as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys' Offices and the Criminal Division's 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.
Lumberton Gang Member Convicted of Possessing a Firearm as a Convicted FelonRead the Press Release
RALEIGH, N.C. – A federal jury convicted a Lumberton man yesterday on a charge of Possession of a Firearm by a Convicted Felon.
According to court records and evidence presented at trial, an officer with the Lumberton Police department observed a red Nissan Rogue fail to stop at a stop sign. The officer approached the vehicle and contacted the driver and sole occupant of the vehicle, Emanuel Mann Billings. Billings admitted that he ran the stop sign, and the officer took his identification where he learned Billings was a convicted felon. The officer reapproached the vehicle and asked whether Billings possessed anything illegal in the vehicle. Billings admitted that he possessed a firearm in the center console of the vehicle.
During the course of the investigation, law enforcement officers were able to review open-sourced social media that showed Billings had been in possession of the firearm for months. Law enforcement also learned that Billings was associated with the street gang, Folk Nation. Billings had previously been convicted of multiple counts of robbery with a dangerous weapon, possession of a weapon of mass destruction, and assault inflicting physical injury of a detention employee.
Billings faces a minimum penalty of 180 months in prison when sentenced in November of 2021.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge James C. Dever III accepted the verdict. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and Lumberton Police Department are investigating the case and Assistant U.S. Attorneys Chad Rhoades and John Harris are prosecuting the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No.7:19-cr-00190-D.
Long Island Dentist Arrested for Distributing Prescription Drugs to Women in Exchange for SexRead the Press Release
An indictment was unsealed today in federal court in Central Islip charging Dr. Barry Arnold, a practicing dentist with an office in Valley Stream, New York, with writing illegal prescriptions to women for oxycodone, a Schedule II controlled substance, and alprazolam (“Xanax”), a Schedule IV controlled substance, in exchange for sex acts. Arnold was arrested yesterday and will be arraigned this afternoon before United States Magistrate Judge James M. Wicks.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), and Stuart Cameron, Acting Police Commissioner, Suffolk County Police Department (SCPD), announced the arrest and indictment.
“As alleged, Dr. Arnold abused his position as a dentist and preyed upon vulnerable, drug-addicted women, trading prescriptions for sex acts,” stated Acting U.S. Attorney Kasulis. “We are committed to vigorous prosecution of medical professionals who abdicate their Hippocratic Oath and contribute to the rise of drug abuse and addiction in our communities."
“With a clear disregard for medical integrity, Dr. Arnold allegedly exchanged prescriptions for sex in his office and home. This investigation focused on a dentist abusing his position by proliferating drug abuse and endangering the lives and safety of several women,” stated DEA Special Agent-in-Charge Donovan. “I commend the men and women at the DEA Long Island District Office Tactical Diversion Group, HSI, Suffolk County Police Department Human Trafficking Investigations Unit, Suffolk County Sheriff’s Office and the US Attorney’s Office Eastern District of New York for their expedient and diligent work on this investigation.”
“It’s alleged that Dr. Arnold took advantage of vulnerable, addicted women for his own benefit. He is ethically and legally responsible for every prescription, but he broke his oath with his alleged misconduct, and he is really no different than a street dealer,” stated HSI Special Agent in Charge Fitzhugh. “HSI’s continued partnership with the DEA will ensure that drug-dealing dentists are arrested for their criminal acts.”
“During the course of close to four years, Dr. Arnold used his ability to write prescriptions to take advantage of those struggling with addiction for his own personal indulgences,” stated Acting SCPD Commissioner Cameron. “While this doctor should have held himself to a higher standard, our officers on the DEA’S Long Island Tactical Diversion Squad will continue to hold those in medical practice accountable for illegal actions and I would like to commend the Eastern District of New York for making a difference in the opioid epidemic.”
As set forth in court filings, between October 2016 and August 2020, Dr. Arnold allegedly prescribed oxycodone, Percocet and Xanax to numerous drug-addicted victims in exchange for sex acts. The sex acts occurred after business hours at his former dental office in Lynbrook and current office in Valley Stream. Arnold also prescribed controlled substances in exchange for sex acts at his home in Williston Park. The victims were not Arnold’s dental patients and the prescriptions were not for legitimate medical purposes.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Dr. Arnold faces up to 20 years in prison.
The government’s investigation was led by the DEA’s Long Island Tactical Diversion Squad, which is comprised of agents and officers of the DEA, SCPD, Nassau County Police Department, HHS-OIG and Port Washington Police Department In addition, HSI, SCPD Human Trafficking Investigations Unit and Suffolk County Sheriff’s Office assisted with the investigation of the case.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Michael J. Bushwack is in charge of the prosecution.
The Defendant:
DR. BARRY ARNOLD
Age: 70
Willison Park, New YorkE.D.N.Y. Docket No. 21-CR-436 (GRB)
Life Insurance Trustees ChargedRead the Press Release
HAMMOND- Ricky Blaylock, age 60, of Riverside, IL and Jacqueline Blaylock Wisnewski, age 57, of Indianapolis, Indiana, were charged with bank fraud related to their theft of insurance proceeds held in trust accounts designated for the benefit of their eight-year-old grandchild.
According to the indictment, the insurance proceeds were derived from a life insurance policy held by the defendant’s son Jacob, an active-duty soldier, who passed away in late 2007. Jacob’s will named his eight-year-old daughter as his sole heir. Under the terms of his will, the assets of the estate were to be held in trust for his daughter until she was 21 years old. The will designated Jacob’s parents, Ricky Blaylock as executor of the estate and Jacqueline Blaylock as the trustee. The only asset in Jacob’s estate was the $400,000 life insurance policy. The indictment alleges that defendants funneled part of the insurance proceeds into trust accounts designated for the benefit of their grandchild but then proceeded to deplete the accounts from March 2008 through 2011, without ever making a distribution to or for the benefit of the child.
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.
This case is being investigated by the Federal Deposit Insurance Corporation-Office of Inspector General and the Federal Bureau of Investigation. This case is being prosecuted by Assistant United States Attorney Diane Berkowitz.
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Lemoyne Man Sentenced to 262 Months’ Imprisonment for Possession of A Firearm in Furtherance of Drug TraffickingRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Akee Ly, age 32, of Lemoyne, Pennsylvania, was sentenced on August 25, 2021, to 262 months’ imprisonment by United States District Court Chief Judge Matthew W. Brann for possession of firearms during a drug trafficking crime.
According to Acting U.S. Attorney Bruce D. Brandler, Ly had previously been convicted of a felony and was prohibited from possessing firearms and used a third party to purchase firearms on his behalf. During a search warrant of Ly’s home in Lemoyne, Pennsylvania, officers found: an SCCY Industries pistol, a Taurus pistol, a Taurus revolver, a Springfield Armory pistol, firearm magazines, assorted ammunition, 75 grams of cocaine, $12,265, three bottles of promethazine, multiple Xanax bars, marijuana, eight Ecstasy pills, 200 THC vape bottles, and narcotics packaging material.
The case was investigated by the Bureau of Alcohol, Tobacco, and Firearms. Assistant U.S. Attorney Scott Ford prosecuted the case.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Leader of Seattle drug distribution ring sentenced to 13 years in prisonRead the Press Release
Seattle – A 51-year-old Seattle man was sentenced today in U.S. District Court in Seattle to 13 years in prison for drug and gun crimes announced Acting United States Attorney Tessa M. Gorman. Clyde McKnight was convicted May 21, 2021, of possession of controlled substances with intent to distribute, and two counts of being a felon in possession of firearms, following a 5-day jury trial. The case stemmed from a 6-month investigation in 2017 by the Seattle Police Department and Drug Enforcement Administration, of significant drug trafficking in Seattle’s Pioneer Square neighborhood. At the sentencing hearing, U.S. District Judge Thomas S. Zilly ordered McKnight to also pay a $36,000 fine and serve five years of supervised release following prison.
“This defendant was a significant drug dealer in Seattle’s Pioneer Square neighborhood, spreading addiction, despair, and potentially deadly fentanyl throughout our community,” said Acting U.S. Attorney Gorman. “He has been involved with crime for decades, and did significant state prison time for attempted murder. This federal sentence is necessary to protect the public from the defendant’s callous disregard for community safety.”
According to records filed in the case and testimony at trial, Clyde McKnight was arrested outside a Portland, Oregon motel in January 2018. The arrest followed the seizure of 2.6 kilos of cocaine, 1.5 kilos of heroin, 607 grams of crack cocaine, 42 grams of methamphetamine and 180 grams of fentanyl from McKnight’s vehicle in Seattle. At the time of his arrest, McKnight had $36,000 and a handgun with him.
McKnight had been observed by law enforcement using a Chrysler 300 sedan as a storage location for drugs – crack cocaine, powder cocaine, heroin, and fentanyl. McKnight parked the vehicle in various locations in the Mount Baker neighborhood. On the night of January 2, 2018, the Seattle Police Department impounded the car and obtained a search warrant. In the early morning of January 3, 2018, McKnight made numerous panicked calls to 9-1-1 to report the vehicle stolen. Ultimately, he was informed the vehicle had been impounded and was in the police evidence yard. McKnight immediately tried to flee the state, traveling to Portland, Oregon where he was arrested.
A search of McKnight’s apartment in downtown Seattle turned up another firearm – a loaded Glock. McKnight is prohibited from possessing firearms due to prior convictions – including one for attempted murder. The jury reached separate verdicts following the drug conviction, finding that McKnight was also guilty of being a felon in possession of the two firearms.
Four other conspirators were charged, convicted, and sentenced as part of the case:
Patrick Tables, 56, was sentenced to 10 years in prison.
Jonathon Rushing, 42, was sentenced to 8 and a half years in prison.
Michael Turner, 52, was sentenced to 5 years in prison
Marvin Traylor, 52, was sentenced to one year in prison.
After multiple requests by the defendant for delays in the trial, McKnight’s trial was scheduled for April 2020. The pandemic closure of the U.S. District Courthouse to in-person appearances delayed the trial further. The case was the first one scheduled for trial as the courthouse returned to limited jury trials.
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.
The case was investigated by the Seattle Police Department and the Drug Enforcement Administration (DEA) with assistance from the Port of Seattle Police Department and the FBI crime lab at Quantico, VA.
The case was prosecuted by Assistant United States Attorneys Vince Lombardi and Casey Conzatti.
Laredo Man Sentenced to 25 Years for Brutal Assault in Dallas Parking GarageRead the Press Release
The Laredo man who brutally assaulted a woman in a downtown Dallas parking garage has been sentenced to 25 years in federal prison, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
David Cadena, 27, was charged via criminal complaint in November 2019 and indicted less than a month later. Before he was federally charged, Mr. Cadena been charged by the state with aggravated assault with a deadly weapon and aggravated robbery, but had twice bonded out of Dallas County Jail. A federal judge ordered him detained immediately after he was arrested by the feds. He pleaded guilty in April 2021 to the federal charge, carjacking resulting in bodily injury, and was sentenced Thursday by U.S. District Judge Jane J. Boyle.
According to plea papers, Mr. Cadena admitted he savagely assaulted the victim with a fire extinguisher in the parking garage of the Statler Hotel around 2:30 a.m. on Saturday, Sept. 21.
After assaulting the victim, Mr. Cadena allegedly carjacked her 2015 Toyota Corolla, drove it around the garage, and slammed it into a wall. A Statler security guard observed Mr. Cadena behind the wheel of the wrecked vehicle and removed him from the car for his own safety.
Authorities discovered the 27-year-old victim, identified in court documents as J.K., unconscious, with severe bruising and swelling to her face and head. She was transported to Baylor Hospital, where she lay in a coma for two days, and medical professionals documented nerve damage to her arms and legs as a result of the beating.
“Cadena was likely a blow short of committing capital murder,” prosecutors argued in a motion for upward variance from the sentencing guidelines, later granted by the judge. “This is not a run-of the-mill, garden-variety carjacking. Cadena’s crime is excessively violent and egregious.”
In court documents, Mr. Cadena asserted that because he was heavily intoxicated at the time of the crime, he has no recollection of the events that occurred that night. However, after reviewing the evidence, including security video and witness accounts, he agreed that he committed the offense as described.
The Federal Bureau of Investigation Dallas Field Office and Dallas Police Department conducted the investigation. Assistant U.S. Attorneys Camille Sparks and Gary Tromblay prosecuted the case.
Keystone Heights Man Pleads Guilty to Escaping from Jacksonville Halfway HouseRead the Press Release
Jacksonville, Florida – Derrick S. McCullough (31, Keystone Heights) today pleaded guilty to escaping from a residential reentry center (halfway house) where he was completing a prior 50-month federal prison sentence. McCullough faces a maximum penalty of five additional years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, in May 2018, a U.S. District Judge in the Southern District of West Virginia found McCullough guilty of possessing a firearm as a convicted felon and committed him to the custody of the U.S. Bureau of Prisons (BOP) to serve 50 months’ imprisonment. In December 2020, the BOP transferred McCullough into the custody of Keeton Corrections, Inc. Jacksonville Residential Reentry Center, a halfway house, to complete the remainder of his sentence.
McCullough was employed during portions of his time at Keeton. While employed there, he was permitted to leave the facility for work, but was required to return afterwards. On March 29, 2021, McCullough supposedly left Keeton to go to work, but later that day, his employer notified a Keeton official that McCullough was not present. On May 24, 2021, McCullough was arrested in Bradford County. In the intervening period (approximately two months), he never returned to Keeton.
This case was investigated by U.S. Marshals Service and the Bradford County Narcotics Task Force. It is being prosecuted by Assistant United States Attorney Michael J. Coolican.
Kansas City man pleads guilty to conspiracy charge related to drug-trafficking ringRead the Press Release
ST. LOUIS – Joshua Sangrait, of Kansas City, Missouri pleaded guilty to one count of conspiracy to distribute controlled substances including more than 50 grams of actual methamphetamine. Sangrait appeared today before United States District Court Judge John A. Ross.
In 2018, the Drug Enforcement Administration (DEA) in St Louis, Missouri began an investigation into the drug trafficking activities undertaken by Joshua Sangrait and others. The investigation uncovered a vast network of co-conspirators spanning from St. Louis to Kansas City to California. During the investigation, DEA established that defendant Joshua Sangrait, who resided in Kansas City, participated in the conspiracy and distributed significant amounts of controlled substances to other co-conspirators.
As the investigation progressed, on April 19, 2019, DEA and the Kansas City, Kansas Police Department conducted an operation which resulted in the arrest of Sangrait. Investigators seized more than four kilograms of pure methamphetamine during the arrest of Sangrait. The conspiracy charge carries a mandatory minimum term of imprisonment of not less than ten years.
Judge Ross has set sentencing for November 30, 2021.
Drug Enforcement Administration investigated the case with assistance from the Kansas City, Kansas Police Department.
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Jury Convicts Recidivist Defendant of Possessing Child PornographyRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted an Alexandria man today on charges of possessing child pornography.
“The evidence at trial demonstrated that the defendant’s prior conviction for distributing child pornography unfortunately did not deter him from continuing to seek out such heartbreaking and illegal images,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Thanks to the diligent efforts of the trial team and our law enforcement partners, the defendant has been held accountable for his recidivist conduct by a jury of his peers.”
According to court records and evidence presented at trial, James B. Clawson, Sr., 58, was previously convicted of distribution of child pornography in 2009 after law enforcement learned that he was serving as an administrator of an online forum dedicated to trafficking child sexual abuse material. In July 2019, while Clawson was completing a term of federal supervised release in connection with his conviction, a U.S. probation officer discovered that Clawson had been hiding a laptop computer and multiple thumb drives in a hidden compartment in a shelving unity in his home.
Evidence presented at trial established that Clawson used the laptop to search for and repeatedly download from the internet images and videos of minors engaged in sexually explicit conduct and then stored those images on one of his thumb drives. The evidence further established that Clawson sorted these child sexual abuse images on his thumb drive and assigned them files names based on the specific sexually explicit conduct they depicted.
Clawson was convicted of possession of child pornography. He faces a mandatory minimum sentence of 10 years in prison and a maximum sentence of 20 years in prison when sentenced on December 1, 2021. 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.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Kenneth A. Polite Jr., Assistant Attorney General of the Justice Department’s Criminal Division; and Robert E. Bornstein, Acting Special Agent in Charge of the FBI Washington Field Office Criminal Division, made the announcement after U.S. District Judge Rossie D. Alston, Jr. accepted the verdict.
The FBI investigated the case, with significant assistance from the High Technology Investigative Unit (HTIU) of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).
Assistant U.S. Attorney Seth Schlessinger and Special Assistant U.S. Attorney William G. Clayman are prosecuting the case.
This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force. The task force is composed of FBI agents, along with other federal agents and detectives from northern Virginia and the District of Columbia. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children and those engaged in human trafficking.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-119
Jury Convicts Macon Man on Meth, Gun ChargesRead the Press Release
MACON, Ga. – A federal jury convicted a Macon man with a violent criminal history on drug and firearms charges this week.
Roderick Chester, 34, of Macon, was found guilty of conspiracy to possess with intent to distribute methamphetamine, distribution of methamphetamine and being a felon in possession of a firearm on Wednesday, August 25, following a three-day trial that began on Monday, August 23. Chester is facing a mandatory minimum of ten years up to a maximum of life in prison. A sentencing date has not yet been set. Chester was the last of a total of 19 defendants indicted after an investigation centered on drug trafficking in and around motels located in the Eisenhower Parkway corridor. All 19 were convicted in federal court.
“This week’s guilty verdict concludes an investigation into drug trafficking involving individuals with lengthy criminal records,” said Acting U.S. Attorney Peter D. Leary. “The FBI and the Bibb County Sheriff’s Office, along with our local, state and federal law enforcement partners, are working with us to ensure that repeat, violent felons like Roderick Chester will be held accountable for their continued criminal activities that diminish our neighborhoods and harm our citizens.”
“The jury has spoken and now Chester will be held accountable for plaguing the streets of the Macon community with drugs and their resulting violence and destruction,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The citizens of those communities are safer because they are rid of him and his co-defendants, thanks to the cooperation between the FBI and our federal, state and local law enforcement partners.”
According to court documents and evidence introduced at trial, Chester was a methamphetamine supplier in Macon. During the investigation agents observed Chester supplying methamphetamine to co-defendant Carlos Brown, who ultimately sold the methamphetamine to a confidential source during three controlled buys. Agents intercepted Chester’s phone calls and text messages by wiretap which revealed further methamphetamine distribution activities by Chester. At the time of his arrest, Chester had $15,000 cash and a firearm in his possession. Chester had previously been convicted of aggravated assault and aggravated assault on a peace officer. It is illegal for a convicted felon to possess a firearm. As a result of the full investigation into this methamphetamine trafficking organization, agents seized approximately 2.5 kilograms of methamphetamine.
The following co-defendants have pleaded guilty and have been sentenced for their crimes or are awaiting sentencing:
Albruce Green aka B, 41, of Macon, pleaded guilty to possession with intent to distribute methamphetamine and was sentenced to serve 240 months in prison, with 180 months to run concurrently and 60 months to run consecutively to a prior federal case in which he pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and was sentenced to serve 240 months in prison, for a total sentence of 300 months;
Robert Lee Whisby, Jr. aka Lil Pumpkin, 46, of Macon and Stone Mountain, Georgia, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and was sentenced to serve 240 months in prison;
Rodney Morris, Sr., 46, of Macon, pleaded guilty to possession with intent to distribute methamphetamine and was sentenced to serve 200 months in prison;
Joshua Barham aka Gambino, 32, of Macon, pleaded guilty to possession with intent to distribute methamphetamine and was sentenced to serve 175 months in prison;
Kyra Williams aka K-Boo, 29, of Macon, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and was sentenced to serve 100 months in prison;
Theon Robinson, 40, of Macon and Sarasota, Florida, pleaded guilty to use of communication facility in causing or facilitating the commission of felonies under the controlled substances act and was sentenced to serve 46 months in prison;
Melvin Cason, 32, of Macon, pleaded guilty to possession with intent to distribute methamphetamine and was sentenced to serve three years of probation;
Cartney Pitts aka Blue, 37, of Macon, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and is facing a mandatory minimum of ten years up to life in prison. Sentencing is scheduled for September 29;
Keyundre Stafford aka Dre, 26, of Macon, pleaded guilty to possession of a firearm in furtherance of a drug trafficking crime and use of communication facility in causing or facilitating the commission of felonies under the controlled substances act and for the gun charge is facing a minimum of five years, up to life imprisonment, consecutive to any other sentence and a maximum of four years in prison for the use of communication charge. Sentencing is scheduled for November 3;
Stephanie Davis, 32, of Macon, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and is facing a maximum of 20 years in prison. Sentencing is scheduled for September 29;
Troy Faulks, 49, of Macon, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and is facing a maximum of 20 years in prison. Sentencing set for September 29;
Lori Harrell, 34, of Macon, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and is facing a maximum of 20 years in prison. Sentencing is scheduled for September 29;
Carlos Brown aka Lo, 32, of Macon, pleaded guilty to distribution of methamphetamine and is facing a maximum of 20 years in prison. Sentencing is scheduled for November 3;
Shauna Bush aka “Brittany, 26, of Macon, pleaded guilty to distribution of methamphetamine and is facing a maximum of 20 years in prison. Sentencing is scheduled for September 29;
Morley Culver , 44, of Macon, pleaded guilty to two counts use of communication facility in causing or facilitating the commission of felonies under the controlled substances act and is facing a maximum four years in prison per count. Sentencing is scheduled for November 3;
Tamara Fryer, 34, of Macon, pleaded guilty to use of communication facility in causing or facilitating the commission of felonies under the controlled substances act and is facing a maximum of four years in prison. Sentencing is scheduled for November 3;
Milton Hill, 38, of Macon, pleaded guilty to use of communication facility in causing or facilitating the commission of felonies under the controlled substances act and is facing a maximum of four years in prison. A sentencing date has not been scheduled; and,
Ray Kendrick aka Unk, 63, of Macon, pleaded guilty to use of communication facility in causing or facilitating the commission of felonies under the controlled substances act and is facing a maximum of four years in prison. Sentencing is scheduled for November 3.
The case was investigated by FBI and the Bibb County Sheriff’s Office.
Assistant U.S. Attorneys Shanelle Booker, Beth Howard and Will Keyes are prosecuting the case.
Jury Convicts Las Vegas Man of Three Armed RobberiesRead the Press Release
LAS VEGAS, Nev. – On Wednesday, a federal jury convicted a Las Vegas man for committing three armed robberies of businesses in Las Vegas and Henderson.
According to court documents and evidence presented at trial, Lesean Roger Dennis Braddock Jr. (28) and co-defendant Byron Joshua Jarell Porter (24) conspired to commit a series of three armed robberies over a four-day period in September 2019.
Following a three-day trial, the jury found Braddock guilty of one count of conspiracy to commit interference with commerce by robbery, three counts of interference with commerce by robbery, and three counts of brandishing a firearm during and in relation to a crime of violence. U.S. District Judge James C. Mahan presided over the trial and scheduled sentencing for December 3, 2021. Braddock faces the statutory maximum penalty of life imprisonment. For each count of brandishing a firearm during and in relation to a crime of violence, Braddock faces a mandatory minimum penalty of seven years in prison, which must be served consecutive to any other sentence.
Co-defendant Porter pleaded guilty in October 2020 and is awaiting sentencing.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI made the announcement.
This case was investigated by the FBI, Henderson Police Department, and Las Vegas Metropolitan Police Department. Assistant U.S. Attorneys Daniel Clarkson and Brian Whang are prosecuting the case.
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Jackson Man Sentenced to over 8 Years in Federal Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
Jackson, Miss. – A Jackson man was sentenced to serve 97 months in federal prison, followed by 5 years of supervised release, for possession with intent to distribute methamphetamine, announced Acting U.S. Attorney Darren J. LaMarca and Acting Special Agent in Charge Paul Brown of the Federal Bureau of Investigation in Mississippi.
Sylvester Donte Pugh, 38, of Jackson, was indicted by a federal grand jury for aiding and abetting the distribution of methamphetamine in 2018. Pugh pleaded guilty to the charge on May 10, 2021.
The case is the result of an extensive Organized Crime Drug Enforcement Task Forces (OCDETF) investigation operation targeting illegal methamphetamine distribution in central Mississippi.
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.
The case was investigated by the Federal Bureau of Investigation, Homeland Security Investigations, the Mississippi Bureau of Narcotics, the Jackson Police Department, the Madison Police Department, the Ridgeland Police Department, and the Rankin County Sheriff’s Office.
Assistant U.S. Attorney Keesha Middleton and Christopher Wansley prosecuted the case.
Guatemalan Man Sentenced for Unlawful Reentry by an Alien Removed After Conviction of a FelonyRead the Press Release
Gulfport, Miss. – A Guatemalan national was sentenced to “time served” (6 months) in prison, for the federal crime of unlawful reentry by a removed alien, announced Acting U.S. Attorney Darren J. LaMarca, Jason E. Schneider, Acting Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector.
Julio Pablo-Chan, 39, was convicted after pleading guilty on May 27, 2021.
According to court documents, Julio Pablo-Chan, 39, of Guatemala, was arrested on February 26, 2020, on Interstate 10 in Jackson County. An agent of the South Mississippi Metro Enforcement Team (SMMET) conducted a traffic stop on a vehicle driven by Pablo-Chan, who did not have a driver’s license. The deputy requested assistance from the U.S. Border Patrol and a Border Patrol Agent responded on-site. The agent informed Pablo-Chan that due to his immigration history, and the fact that he did have proper immigration documents to enter, pass through or remain in the U.S. legally, he was being placed under arrest.
Pablo-Chan was transported to the Gulfport Border Patrol Station, where an agent with Homeland Security Investigations joined the investigation. Pablo-Chan’s identity was positively confirmed and records revealed that Pablo-Chan had illegally entered the United States and been removed from the United States back to his home nation of Guatemala in August 2011 and again in December 2018.
The case was investigated by the U.S. Border Patrol, Homeland Security Investigations and the Jackson County Sheriff’s Department.
Assistant U.S. Attorney Stan Harris is the prosecutor for the case.
Georgia Man Indicted for Albertville Bank RobberyRead the Press Release
BIRMINGHAM, Ala. – A federal grand jury this week indicted a Georgia man on a bank robbery charge, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Johnny Sharp, Jr.
A one-count indictment filed in U.S. District Court charges Nekyle N. Chaney, 45, of Covington, Georgia, with bank robbery. Chaney is accused of robbing the Regions Bank in Albertville by force, violence, or intimidation in February 2021.
Chaney faces a maximum penalty of 20 years in prison and a fine of up to $250,000.
The FBI investigated the case with the assistance of the Albertville Police Department. Assistant U.S. Attorneys Catherine Crosby and Michael Royster are prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Foxborough Teacher Arrested on Child Exploitation ChargesRead the Press Release
BOSTON – A teacher at Foxborough High School was arrested today and charged in connection with possession of child pornography and receiving child pornography over the internet.
Thomas Davis, 41, of Mansfield, was charged with possession and receipt of child pornography. Following an initial appearance today before U.S. District Court Magistrate Judge David H. Hennessy, Davis was detained pending a probable cause and detention hearing scheduled for Sept. 1, 2021.
According to the charging documents, law enforcement executed a search warrant at Davis’ residence today and seized a laptop belonging to Davis. An on-site examination of the device revealed approximately 40 images of child pornography on the defendant’s laptop, including images involving prepubescent minors under the age of 12-years-old.
The charge of receipt of child pornography provides for a sentence of at least five years and up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. The charge of possession of child pornography provides for a sentence of up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Valuable assistance was provided by the Mansfield Police Department. Assistant U.S. Attorney David G. Tobin of Mendell’s Major Crimes Unit is prosecuting the case
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the criminal complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Four Members of “Robles Park” Criminal Enterprise Indicted for Racketeering, Shootings, and Economic CrimesRead the Press Release
Tampa, Florida – Acting United States Attorney Karin Hoppmann announces the return of an indictment charging Keaujay Hornsby, a/k/a “Plug,” (26, Tampa); Kareem Spann, a/k/a “Reem,” (27, Tampa); Tywon Spann, a/k/a “Weez,” (25, Tampa); and Eriaus Bentley (29, Tampa). Hornsby and both Spanns have been charged with racketeering conspiracy which, as the indictment alleges, relates to numerous violent, drug-trafficking, and economic crimes, committed in furtherance of a criminal enterprise called “Robles Park.” Hornsby and Kareem Spann have also been charged with committing violent crimes in aid of racketeering, and discharging firearms in aid of crimes of violence. All four defendants are charged with conspiring to commit fraud and identity theft, and with committing numerous substantive acts of fraud and identity theft.
If convicted on all counts, the defendants face the following maximum penalties:
- Hornsby: Life in prison
- Kareem Spann: Life in prison
- Tywon Spann: 79 years in prison
- Bentley: 29 years in prison
The indictment also notifies the defendants that the United States is seeking a money judgment in the amount that the defendants obtained or attempted to obtain from their offenses.
According to the indictment, “Robles Park” is a criminal organization whose members and associates engaged in acts involving murder, assault, intimidation, narcotics trafficking, access device fraud, identity theft, obstruction of justice, and other crimes. The indictment alleges that, among other acts of violence, Hornsby and Kareem Spann committed a shooting outside the Truth Lounge in Tampa, on July 19, 2020, and committed another shooting outside the International Plaza in Tampa on July 25, 2020.
An indictment is merely a formal charge that a defendant has violated one or more of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation, the Tampa Police Department, and the Department of Labor. It will be prosecuted by Assistant United States Attorney Natalie Hirt Adams.
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.
Four Charged in Alleged $150 Million Payment Processing SchemeRead the Press Release
Four individuals have been charged in the District of Massachusetts with conspiring to deceive banks and credit card companies into processing more than $150 million in credit and debit card payments on behalf of merchants involved in prohibited and high-risk businesses, including online gambling, debt collection, debt reduction, prescription drugs, and payday lending, according to an indictment unsealed today in Boston. Three of the four individuals charged were arrested today. The fourth defendant has not yet been arrested and is a fugitive on separate federal charges.
According to court documents, Ahmad “Andy” Khawaja, 49, of Los Angeles, California, and Thomas Wells, 74, of Martin County, Florida, are charged with conspiracy to commit wire fraud. Mohammad “Moe” Diab, 45, of Glendale, California, and Amy Ringler Rountree, 38, of Logan, Utah, are charged with conspiracy to commit wire fraud and conspiracy to commit bank fraud. Federal agents arrested Diab, Rountree, and Wells this morning. They are expected to appear in federal court in Los Angeles, Salt Lake City, Utah, and Chicago, Illinois, respectively, later today or tomorrow. Khawaja is a fugitive from a December 2019 federal indictment filed in the District of Columbia that charges him, Diab, and others with campaign finance violations and obstruction of justice.
According to the indictment, executives of Allied Wallet Inc., a payment processing company headquartered in Los Angeles, secured payment processing for high-risk businesses through fraudulent misrepresentations about merchant clients. Khawaja served as Allied Wallet’s owner and Chief Executive Officer, Diab served as the Chief Operating Officer, and Rountree served as Vice President of Operations. Allied Wallet provided services enabling merchant clients to accept debit and credit card payments over global electronic payment networks run by card brands such as Visa, Mastercard, American Express, and Discover. Allied Wallet served as an intermediary between its merchant clients and financial institution members of the card brand networks. Wells, through his company Priority Payout, introduced merchant clients seeking payment processing to Allied Wallet.
The indictment alleges that Khawaja, Diab, Rountree, Wells, and others engaged in a scheme to defraud several financial institutions, the card brands, and others of money and property by fraudulently inducing them to provide payment processing services to merchants engaged in prohibited or high risk transactions, and to merchants that were terminated for fraud, chargeback, or other compliance concerns, through knowingly misrepresenting the types of transactions that the merchants were processing and the true identities of the merchants. The defendants and their co-conspirators accomplished the scheme through, among other steps, creating shell companies, designing fake websites that purported to sell low-risk retail and home goods, and using industry-standard codes that miscategorized the true nature of the transactions. Through the scheme, the defendants and their co-conspirators fraudulently obtained more than $150 million in payment card processing through more than 100 sham merchants.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division and Acting U.S. Attorney Nathaniel R. Mendell of the District of Massachusetts made the announcement.
The Food and Drug Administration – Office of Criminal Investigations, U.S. Postal Inspection Service, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations are investigating the case.
Trial Attorney Randall Warden of the Justice Department’s Money Laundering and Asset Recovery Section (MLARS) and Assistant U.S. Attorney and Deputy Chief Seth B. Kosto of the Securities, Financial & Cyber Fraud Unit at the U.S. Attorney’s Office for the District of Massachusetts are prosecuting the case.
MLARS’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Four Charged in Alleged $150 Million Payment Processing SchemeRead the Press Release
BOSTON – Four individuals have been charged with conspiring to deceive banks into allegedly processing more than $150 million in credit and debit card payments on behalf of merchants involved in prohibited and high-risk businesses, including online gaming, debt collection, debt relief, online pharmaceuticals and payday lending, among others.
Ahmad “Andy” Khawaja, 49, of Los Angeles, and Thomas Wells, 74, of Martin County, Fla., were charged with wire fraud conspiracy. Mohammad “Moe” Diab, 45, of Glendale, Calif., and Amy Ringler Rountree, 38, of Logan, Utah, were charged with wire fraud conspiracy and bank fraud conspiracy. Diab, Rountree and Wells were arrested today and will appear in federal court in Boston at a later date. Khawaja was charged in a December 2019 indictment along with Diab and others with campaign finance violations and obstruction of justice. Khawaja remains a fugitive.
According to the charging documents, Khawaja was the owner and Chief Executive Officer of Allied Wallet, Inc., a payment processing company headquartered in Los Angeles that served merchants doing business over the internet. Diab served as Chief Operating Officer of Allied Wallet and Rountree was the Vice President of Operations. Allied Wallet obtained for its clients access to services that enabled them to accept debit and credit card payments over global electronic payment networks run by Visa, Mastercard, American Express and Discover, among others (card brands). Allied Wallet served as an intermediary between its merchant clients and financial institutions that were members of the card brand networks (acquirers). Wells, through his company, Priority Payout, introduced merchant clients seeking payment processing to Allied Wallet.
It is alleged that the defendants and others engaged in a scheme to defraud several acquirers, the card brands and others of money and property by fraudulently inducing them to provide payment processing services to merchants engaged in prohibited or high-risk transactions, as well as to merchants that were terminated for fraud, chargeback or other compliance concerns, by knowingly misrepresenting the types of transactions the merchants were processing and the true identities of the merchants. The defendants and their co-conspirators allegedly accomplished the scheme through, among other steps, creating shell companies, designing fake websites that purported to sell low-risk retail and home goods and using industry-standard codes that miscategorized the true nature of the transactions. Through the scheme, it is alleged that the defendants and their co-conspirators fraudulently obtained more than $150 million in payment card processing through more than 100 sham merchants. In furtherance of the scheme, the defendants and their co-conspirators allegedly caused telephone calls and emails to be directed into Massachusetts.
The charge of wire fraud conspiracy provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, forfeiture and restitution. The charge of bank fraud conspiracy provides for a sentence of up to 30 years in prison, five years of supervised release, a fine of $1 million or twice the gross gain or loss, forfeiture and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Assistant Attorney General Kenneth A. Polite of the Justice Department’s Criminal Division; Jeffrey Ebersole, Special Agent in Charge of the U.S. Food and Drug Administration, Office of Criminal Investigations, New York Field Office; Joshua McCallister, Acting Inspector in Charge of the U.S. Postal Inspection Service; and Todd M. Lyons, Field Office Director of Enforcement and Removal Operations, U.S. Immigration and Customs Enforcement (ICE), Boston, made the announcement. Assistance was provided by the Food and Drug Administration, Office of Criminal Investigations, Rhode Island Task Force. Assistant U.S. Attorney Seth B. Kosto, Deputy Chief of Mendell’s Securities, Financial & Cyber Fraud Unit, and Trial Attorney Randall Warden of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Police Officer Sentenced for Sexually Abusing a Young ChildRead the Press Release
A Sapulpa man was sentenced Thursday for sexually abusing a young child, announced Acting U.S. Attorney Clint Johnson.
U.S. District Judge Gregory K. Frizzell sentenced Bradley Don Goodin, 47, to 15 years in federal prison followed by 20 years of supervised release.
During the hearing, the young victim spoke before the Court as well as another child who was also abused by Goodin. Judge Frizzell noted how compelling the statements were and stressed that these types of crimes have a significant impact on both children and their families.
Acting U.S. Attorney Clint Johnson said, “Goodin betrayed two young victims and took advantage of the role he played in their lives. The victims in this case bravely spoke today about the impact of Goodin’s crimes. I am proud of them for coming forward to face this child predator.”
On April 27, 2021, Goodin pleaded guilty to abusive sexual contact with a child under 12 in Indian Country.
In a child forensic interview, the girl described two incidents when Goodin sexually abused her on Oct. 5, 2019. The girl was afraid to tell her mother what was happening at the time because she feared Goodin would harm them. She later disclosed the abuse to her mother. At the time of the incidents, Goodin was an officer with Bristow Police Department. He has not been employed with the department since November 2019.
In a February 2021 superseding indictment, Goodin was charged with sexually abusing a total of three minors. He was also charged with being a felon in possession of 21 firearms. Goodin opted to plead guilty the day his trial was to begin.
The Sapulpa Police Department, Creek County Sheriff’s Office and FBI conducted the investigation. Assistant U.S. Attorneys Jeffrey A. Gallant and Matilda Villalobos are prosecuting the case. Ms. Villalobos is a prosecutor from the District of New Mexico. She volunteered to assist prosecution efforts here in the Northern District of Oklahoma due to increased jurisdictional responsibilities regarding crimes involving Native American victims or defendants and that occur within the Muscogee (Creek) Nation and Cherokee Nation Reservations.
Former New Castle Anesthesiologist Sentenced for Illegally Prescribing and Distributing Oxycodone, Fentanyl, and Opana ERRead the Press Release
PITTSBURGH, Pa. – A resident of New Castle, Pennsylvania, was sentenced in federal court for unlawfully prescribing and distributing controlled substances, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge David S. Cercone, sentenced Thomas Ranieri, 68, to two years of supervised release, with the first year served as home detention.
During his plea hearing on August 21, 2019, the defendant admitted that he previously was a physician who practiced as an anesthesiologist and pain-management specialist in clinics located in New Castle, Pennsylvania, and multiple locations in Ohio. From January 2, 2013, to June 26, 2013, the defendant prescribed and distributed quantities of Schedule II controlled substances (i.e., Oxycodone, Fentanyl, and Opana ER) outside the usual course of professional practice and without a legitimate medical purpose. In total, the defendant pled guilty to fourteen distribution counts associated with his dispensing of approximately 1,100 doses of narcotics.
Assistant United States Attorney Eric G. Olshan prosecuted this case on behalf of the government. The Federal Bureau of Investigation, Health and Human Services Office of Inspector General, Internal Revenue Service - Criminal Investigation, and the Pennsylvania Office of Attorney General Medicaid Fraud Control Section conducted the investigation that led to the prosecution of Ranieri.
Former Music Teacher Sentenced to More Than 15 Years in Federal Prison for Production of Child PornographyRead the Press Release
LOS ANGELES – A former music teacher in Southern California who contracted with several schools to teach music to children was sentenced today to 183 months in federal prison for producing child pornography.
John Edward Zeretzke, 62, of Ventura, was sentenced by United States District Judge Fernando M. Olguin.
Zeretzke pleaded guilty in August 2020 to one count of production of child pornography. He previously pleaded guilty in Orange County Superior Court to six state counts of committing lewd or lascivious acts with minors under the age of 14 years old. He was sentenced in July 2020 in the state court case to 18 years in state prison, a sentence that will run concurrently with his federal prison sentence.
From December 2016 to February 2017, Zeretzke used a computer and the internet to communicate with a female minor and coerced her into producing child pornography. The victim did not live in California at the time.
“[Zeretzke] preyed on young, impoverished girls in Third World countries and used his Flutes Around the World program as a means to contact and sometimes take advantage of those girls,” prosecutors wrote in a sentencing memorandum.
This case is a part of Project Safe Childhood, the Justice Department’s ongoing initiative to combat the plague of child exploitation crimes.
The United States Postal Inspection Service and the Los Angeles County Sheriff’s Department investigated this matter.
Assistant United States Attorney Catharine A. Richmond of the Violent and Organized Crime Section prosecuted this case.
Former Ladysmith Teacher Charged with Producing Child PornographyRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that a complaint was filed today in U.S. District Court in Madison charging McKenzie W. Johnson, 34, of Ladysmith, Wisconsin, with producing child pornography.
The complaint alleges that Johnson produced the child pornography on January 13, 2021. At the time, Johnson was a teacher at the Ladysmith High School. The offense alleged in the complaint does not involve a victim from Wisconsin.
Johnson was arrested on August 24 and is currently in the Rusk County Jail. His initial appearance in federal court in Madison has not been scheduled.
If convicted, Johnson faces a mandatory minimum penalty of 15 years and a maximum of 30 years in federal prison and is subject to a lifetime period of supervised release.
The charge against Johnson is the result of an investigation conducted by the Wisconsin Department of Justice Division of Criminal Investigation, Ladysmith Police Department, Rusk County Sheriff’s Office, Clark County Sheriff’s Office, the Ladysmith School District, and the Fontana (California) Police Department. Assistant U.S. Attorney Elizabeth Altman is handling the prosecution.
You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Former CEO and COO of JHL Biotech Convicted of Conspiracy to Steal Trade Secrets and Commit Wire Fraud Exceeding $101 MillionRead the Press Release
SAN FRANCISCO – Following a change of plea hearing for each defendant, Racho Jordanov, the co-founder and former Chief Executive Officer of JHL Biotech, and Rose Lin, another of the company’s co-founders and former Chief Operating Officer, each were convicted of conspiracy to commit trade secret theft and wire fraud, announced Acting United States Attorney Stephanie M. Hinds, Internal Revenue Service ̶ Criminal Investigation (IRS-CI), Special Agent in Charge Michael Daniels, and Federal Bureau of Investigation, Special Agent in Charge Craig D. Fair. The defendants’ guilty pleas were accepted by the Hon. William Alsup, Senior U.S. District Judge, on August 24, 2021.
Both defendants submitted written plea agreements to the Court. According to the plea agreements, in 2012, Raco Ivanov Jordanov, also known as “Racho” Jordanov, 73, of Rancho Santa Fe, Calif., and Rose Lin, also known as Rose Sweihorn Tong, 72, of South San Francisco, Calif., co-founded JHL Biotech, Inc., a biopharmaceutical startup in Taiwan. Between 2011 and 2019, Jordanov, as President and CEO of JHL Biotech, obtained and possessed confidential, proprietary, and trade secret information from Genentech, and used it to accelerate the timeline for and to reduce the costs of JHL Biotech’s development and production of Genentech biosimilars and to enhance JHL Biotech’s ability to meet various regulatory requirements related to the same. By various means, Jordanov obtained for JHL Biotech’s use many confidential and proprietary documents from Genentech without authorization, some of which contained trade secret information. In so doing, he worked with multiple people within JHL Biotech to possess and use confidential, proprietary, and trade secret information he knew JHL Biotech was not authorized to have.
According to the plea agreement, Jordanov hired former Genentech employees to work at JHL Biotech, several of whom he learned surreptitiously brought, without authorization, confidential and proprietary documents with them from Genentech to JHL Biotech. The company used only some of the stolen documents, but Jordanov tolerated this practice by the employees of JHL Biotech and made no effort to discourage its employees from using the documents or information they brought with them. The employees Jordanov hired provided the Genentech documents and information to JHL Biotech, which, at times, allowed the company to cheat, cut corners, solve problems, provide examples, avoid further experimentation, eliminate costs, lend scientific assurance, and otherwise help JHL Biotech start-up, develop, and operate its business secretly using the intellectual property and scientific know-how taken from Genentech. Jordanov admitted that he suspected that some or all the stolen information was brought to JHL Biotech in violation of relevant Genentech non-disclosure agreements and employment contracts, but he made no effort to verify whether that was true.
In January 2014, Lin arranged for Xanthe Lam, a Principal Scientist working full-time at Genentech, to secretly work as the head of formulation for JHL Biotech. Lin encouraged JHL Biotech scientists to ask Xanthe Lam for assistance or information when they ran into problems. Throughout this time, Lin knew that Xanthe Lam continued to work for Genentech and was not authorized to work for JHL Biotech. Lin also knew that Xanthe Lam did not want Genentech to learn of her work for JHL Biotech. Lin agreed to pay Xanthe Lam’s consultancy fee through her husband, Allen Lam. To further conceal Xanthe Lam’s work for the company, JHL Biotech did not enter a direct contract with Xanthe Lam. Instead, it always paid her through Allen Lam. Lin agreed to conceal Xanthe Lam’s work for JHL Biotech because Lin knew Genentech would not permit Xanthe Lam to work for another biotech company. Lin also directed JHL Biotech employees to use Allen Lam’s JHL email address to email questions to Xanthe Lam. Lin also instructed JHL Biotech employees to refer to Xanthe Lam as “Allen” in these email communications.
In early 2014, Lin learned that JHL Biotech employees were using confidential and proprietary documents, taken without authorization from Genentech, to create a set of JHL Biotech standard operating procedure (“SOPs”). JHL Biotech needed SOPs to apply for the initial Good Manufacturing Practices or “GMP” certification of its manufacturing facility by the Taiwan Food and Drug Administration or “Taiwan FDA.” Lin was in charge of the process for ensuring that JHL Biotech met the deadlines set for the GMP certification process. In that role, Lin was copied on emails where JHL Biotech employees discussed using Genentech documents to create JHL Biotech’s SOPs. Ultimately, 90-100 SOPs were generated in this way. Lin knew the JHL Biotech employees did not have the right to use Genentech’s documents and that their actions constituted theft from Genentech.
Between 2014 and 2018, Jordanov sometimes personally used and instructed others to use confidential, proprietary, trade secret Genentech documents and information relating to Genentech’s complex technology transfer procedures and processes. He used Genentech’s confidential and tech transfer documents in the development, construction, and operation of new facilities for JHL Biotech including its manufacturing facility in Wuhan, China. Jordanov instructed the employees to whom he sent the documents not to share them with others inside the company. Later, in September of 2018, after the criminal investigation had begun, the JHL employee Jordanov tasked with using the Genentech tech transfer documents was instructed by Jordanov to delete the email from Jordanov and its attachment and Jordanov instructed the employee to tell others at JHL Biotech to do the same.
In early-December 2016, Jordanov and Lin met with representatives of Sanofi S.A., the multi-national French pharmaceutical company, for approximately one week, during which they reviewed the strategic partnership agreement to be entered into by Sanofi and JHL Biotech. During this week-long meeting, Jordanov and Lin reviewed each section of the prospective partnership agreements in detail. Some of the sections of the agreements involved JHL Biotech representing to Sanofi that it had developed and was conducting its biosimilar operations without infringing the intellectual property rights of other companies or using other companies’ proprietary information. Jordanov and Lin did not disclose their possession and use of stolen Genentech documents to Sanofi, and instead, Jordanov signed the partnership agreements on behalf of JHL Biotech. By concealing these facts, Jordanov and Lin made it appear, falsely, that JHL Biotech had developed its own, or had lawfully obtained, the intellectual property that the biotech company used when, in fact, JHL Biotech had relied upon intellectual property, including confidential, proprietary, and trade secret information that it stole or received without authorization to obtain regulatory approval for its clinical trials, and build out its manufacturing capability. Jordanov and Lin knew that if they had not concealed these facts, Sanofi would not have agreed to the corporate transaction and invest approximately $80 million in JHL Biotech securities pursuant to the subscription agreement and approximately $21 million pursuant to Biologics Products Options Agreement (BPOA) for a total investment by Sanofi in JHL Biotech of approximately $101 million.
On June 1, 2021, a federal grand jury indicted Jordanov and Lin, charging both defendants with the following charges: (1) conspiracy to commit theft of trade secrets and wire fraud, in violation of 18 U.S.C. § 371; (2) wire fraud, in violation of 18 U.S.C. §§ 1343 and 2 (three counts each defendant); (3) international money laundering, in violation of 18 U.S.C. § 1956(a)(2)(A) (nine counts against Jordanov and five counts against Lin); and (4) conspiracy to obstruct justice, in violation of 18 U.S.C. § 371. In addition, the indictment charges Jordanov with two counts of theft of trade secrets, in violation of 18 U.S.C. § § 1832(a)(1)(2)(3) and 2; and charges Lin with one additional count of making false statements to a government agency, in violation of 18 U.S.C. § 1001(a)(2). Pursuant to the plea agreements, both defendants pleaded guilty to count one of the indictment, conspiracy to commit theft of trade secrets and wire fraud. If the defendants comply with the terms of the plea agreements, the remaining charges will be dismissed at sentencing.
The criminal case against each defendant was adjourned for sentencing before Judge Alsup, on December 7, 2021. For their convictions, Jordanov and Lin each face possible prison sentences controlled by the terms of their respective plea agreements. The court also may order additional assessments, forfeiture, and restitution; however, any sentence would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
On July 7, 2021, in a related case, United States v. Xanthe Lam and Allen Lam, Case No. 18-cr-0527 WHA, both Xanthe Lam and Allen Lam pleaded guilty to, among other offenses, conspiracy to commit theft of trade secrets by stealing confidential, proprietary, and trade secret information from Genentech and giving it to JHL Biotech.
Assistant U.S. Attorneys Sheila A.G. Armbrust, Adam A. Reeves, and Claudia A. Quiroz are prosecuting the case with the assistance of Beth Margen and Morgan Byrne. The prosecution is the result of an investigation by the Internal Revenue Service ̶ Criminal Investigations and the Federal Bureau of Investigation.
Florida man charged with stealing over $12 million in funds intended to be used to buy Personal Protective EquipmentRead the Press Release
ATLANTA – Brian Sperber has been indicted for defrauding personal protective equipment (“PPE”) purchasers out of more than $12 million during the COVID-19 pandemic, money which Sperber then allegedly used to fund his own lifestyle, including by purchasing a multi-million-dollar waterfront mansion.
“While others were marshalling limited medical resources to confront the COVID-19 pandemic, Sperber allegedly lined his pockets with stolen money that was intended to purchase lifesaving PPE for hospitals and medical institutions,” said Acting U.S. Attorney Kurt R. Erskine. “As the effects of the COVID-19 pandemic continue, this office will aggressively pursue those individuals who steal funds intended to be used to purchase critical medical equipment.”
“Sperber allegedly took advantage of companies trying to direct personal protective equipment to those protecting themselves against a deadly virus,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Profiting from others’ hardships is something the FBI is determined to stop and will be a priority for our investigators during this pandemic.”
According to Acting U.S. Attorney Erskine, the charges, and other information presented in court: Brian Sperber, who was a distributor of PPE, allegedly embezzled over $12 million from customers seeking to purchase PPE during the COVID-19 pandemic. Sperber and a co-conspirator are alleged to have repeatedly sent customers falsified invoices, emails, and other documents to make them believe that their orders were on the way when in fact Sperber and his co-conspirator had misappropriated the funds.
Even though he was aware hospital and medical institutions needed this PPE as the pandemic worsened in early 2020, Sperber allegedly used millions of dollars’ of his victims’ funds for his own personal use, which included purchasing a multi-million dollar waterfront mansion in Boca Raton, Florida.
Brian Sperber, 44, of Boca Raton, Florida was charged with one count of conspiracy to commit wire fraud, four counts of wire fraud, one count of conspiracy to commit money laundering, and four counts of money laundering. Sperber will be arraigned at a later date in the Northern District of Georgia.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Thomas J. Krepp is prosecuting the case, and Assistant U.S. Attorney Sekret T. Sneed, Chief of the Asset Forfeiture and Money Laundering Section, is handling the forfeiture associated with this case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Florida Man Pleads Guilty to Procurement FraudRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Raymond Lofthouse, age 59, of Florida, pled guilty to one count of filing false claims against the U.S. Government.
According to Acting U.S. Attorney Bruce D. Brandler, Lofthouse was awarded a contract for $60,000 to repair three electric motors for the U.S. Navy. Lofthouse billed the Navy for the contract, knowing the work was not complete and then never completed the work.
The matter was investigated by the Naval Criminal Investigative Service and the Department of Defense Office of the Inspector General, Defense Criminal Investigative Service. Assistant U.S. Attorney Scott R. Ford is prosecuting the case.
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 for this offense is up to five years in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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