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5 October 2021
Beaumont Career Felon Sentenced for Federal Firearms ViolationRead the Press Release
BEAUMONT, Texas – A Beaumont man has been sentenced to prison for a federal firearms violation in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas Ganjei today.
Benjamin Bernard Garrett, 40, pleaded guilty on May 4, 2021, to being a prohibited person in possession of a firearm and was sentenced to 27 months in federal prison today by U.S. District Judge Thad Heartfield.
According to court documents, on Sep. 6, 2020, Beaumont police responded to a call of shots fired and was told the suspect was leaving in a white Chevy Malibu. Officers located the vehicle and attempted to conduct a traffic stop. The car did not stop until it pulled into a driveway. The driver, identified as Garrett, was taken into custody for evading with a motor vehicle. A search of the vehicle revealed two handguns. Further investigation revealed Garrett had been previously convicted of four felony offenses prohibited from owning or possessing firearms or ammunition. Garrett was indicted by a federal grand jury on Dec. 2, 2020, and charged with federal firearms violations.
“This defendant did more than just illegally possess a firearm, he discharged the weapon,” said Acting U.S. Attorney Nicholas J. Ganjei. “Thankfully, no one was hurt, and we were able to take someone with a history of violent behavior off the streets of Beaumont.”
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Beaumont Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Rachel Grove.
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Bartlesville Man Pleads Guilty to Sexually Abusing a MinorRead the Press Release
A 25-year-old Bartlesville man pleaded guilty Tuesday in federal court for sexually abusing a minor starting when she was 14.
Caleb Lewis Witte pleaded guilty to abusive sexual contact with a minor in Indian Country and sexual abuse of a minor in Indian Country.
Witte admitted that on Nov. 11, 2020, he had sex with a minor who was 15 years of age. He further admitted that from June 1, 2020, to Nov. 11, 2020, he engaged in sexual contact with the victim. The victim was 14 years old when the majority of the abuse occurred.
“Caleb Witte violated the trust placed in him when he took advantage of a vulnerable victim by sexually abusing her. A school counselor became aware of the abuse and immediately contacted authorities,” said Acting U.S. Attorney Clint Johnson. “Protecting children from harm takes an entire community. Behind every sexual abuse case we pursue, there is a long line of personal and professional advocates who play key roles in supporting victims and seeking justice on their behalf. Their support is critical.”
U.S. District Judge Gregory K. Frizzell set sentencing for Feb. 22, 2022.
The FBI and Bartlesville Police Department conducted the investigation. Assistant U.S. Attorney Stacey P. Todd is prosecuting the case.
Assault on Northern Cheyenne Indian Reservation sends Ashland man to prisonRead the Press Release
BILLINGS — An Ashland man who admitted to assaulting a man, causing multiple head injuries while brandishing a rifle on the Northern Cheyenne Indian Reservation, was sentenced today to 48 months imprisonment to be followed by three years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
Channing Lee Ziler, 34, pleaded guilty in April to assault resulting in serious bodily injury.
U.S. District Judge Susan P. Watters presided.
In court documents filed in the case, the government alleged that on Dec. 31, 2017, Bureau of Indian Affairs law enforcement officers responded to a 911 call at a residence in Ashland, on the Northern Cheyenne Indian Reservation, where people were drinking, including Ziler. Witnesses described Ziler as being violent that night. The victim, identified as John Doe, arrived at the residence with other individuals. Witnesses described Ziler as holding a rifle when Doe arrived and saying, “this looks like someone I can slap around.” Ziler assaulted Doe, resulting in multiple head lacerations.
Ziler took Doe’s truck and left with Doe and another person. Law enforcement received another 911 call that the truck had run out of gas and that the occupants had set it on fire to stay warm in below zero temperatures. Ziler left the scene with the other individual, and law enforcement found Doe by the truck. Doe was taken to a Billings hospital for treatment of injuries.
Assistant U.S. Attorney Bryan T. Dake prosecuted the case, which was investigated by the FBI and the Bureau of Indian Affairs.
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Armed felons charged under the U.S. Attorney and Fulton County District Attorney’s Offices’ enforcement operation targeting repeat violent offendersRead the Press Release
ATLANTA – Deuntrae Meshari Colley, Antonio Cooper, also known as “Antoine Cooper,” Dexter Hancock, Daeqwan Ray Jackson, also known as “Daequan Ray Jackson,” Donald Johnson, and Drashawn Mitchell, all convicted felons, have been charged with federal offenses, including possessing a firearm while being a convicted felon. These arrests resulted from coordination among federal, state, and local law enforcement agencies as part of an operation under the Project Safe Neighborhood (PSN) Program. This operation, named “Operation Phoenix Summer Surge,” focused on the arrest and prosecution of individuals who illegally used or possessed firearms in violation of federal law and are responsible for driving violence in the City of Atlanta.
“Federal law enforcement is building on strong partnerships with state and local law enforcement to focus on those individuals who are the drivers of violent crime in the City of Atlanta,” said Acting U.S. Attorney Kurt R. Erskine. “Through this district’s PSN program, and in collaboration with the Office of the Fulton County District Attorney, these partnerships helped to ensure that the individuals federally charged as part of this operation will remain in custody pending trial and be prevented from continuing to pose a danger to members of our community.”
“These convictions are an excellent example of how cooperation between federal, state and local law enforcement partners can make our community safer by bringing dangerous offenders to justice. We are cooperating closely with the Acting U.S. Attorney, ATF and other federal partners to make sure felons who break the law by possessing a firearm receive a substantial prison sentence,” said Fulton County District Attorney Fani T. Willis.
“Operation Phoenix Summer Surge is the continuation of a sustained, systematic, and coordinated law enforcement initiative begun in August 2020 to fight violent crime in the City of Atlanta,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI is committed to working together with the U.S. Attorney’s Office, the Fulton County District Attorney and all of our federal, state and local partners to make these arrests because the threats we face are too diverse, too dangerous, and too all-encompassing for any of us to tackle alone.”
“ATF and our outstanding local, state and federal law enforcement partners have ensured the law-abiding citizens of this community are safer as a result of Operation Phoenix Summer Surge,” said Alcohol, Tobacco, and Firearms, Atlanta Field Division Special Agent in Charge Ben Gibbons. “The law enforcement community has reduced a dangerous and pervasive threat to the local community of Atlanta by arresting these individuals.”
“Getting criminals off of our streets is a priority for the Atlanta Police Department. Our work with Operation Phoenix has proven time and time again that our partnerships are effective and making a difference,” said APD Chief Rodney Bryant. “Just knowing that these repeat offenders will be hold accountable for their actions, sends a strong message that we will find you and we will not tolerate criminal activity in our city.”
According to Acting U.S. Attorney Erskine, the charges and other information presented and alleged in court:
- On August 6, 2021, Atlanta Police Department (APD) officers encountered Deuntrae Colley, 38, of Atlanta, Georgia, who was wanted in connection with an aggravated assault. He attempted to flee from the officers and discard a backpack. Colley was apprehended and the backpack was searched, where they recovered a loaded .22 caliber revolver and a spent shell casing. Colley’s criminal history includes a robbery conviction and an incident in which he’s accused of shooting a man on MLK Drive on July 11, 2021. On September 7, 2021, a federal grand jury indicted Colley for the offense of possessing a firearm after having been convicted of a felony offense.
- On July 3, 2021, Dexter Hancock, 35, Atlanta, Georgia, was driving in the parking lot of Lenox Mall in Atlanta when he nearly collided with another motorist. Hancock pointed a loaded 9mm Taurus G2c handgun at the other motorist and members of the motorist’s family. APD officers responded to the scene and arrested Hancock. At the time of his arrest, Hancock was already on supervised release for a federal fraud offense and had been previously convicted of burglary and charged with possessing a weapon during the commission of a crime. On September 21, 2021, a federal grand jury indicted Hancock for the offense of possessing a firearm after having been convicted of a felony offense.
- On August 5, 2021, officers with the APD and Georgia State Patrol responded to a shooting that occurred on Cleveland Avenue in Atlanta. Officers on the scene encountered Daeqwan Jackson, 22, of Lithonia, Georgia, who appeared injured. Jackson informed the officers that he accidentally shot himself with a loaded Glock 30 .45 caliber firearm, loaded with a magazine, that he was carrying. While conducting a background check of Jackson, investigators discovered that recently, in 2019, Jackson was convicted of two counts of Robbery by Sudden Snatching. On August 9, 2021, Jackson was charged via a federal criminal complaint with the offense of possessing a firearm after having been convicted of a felony offense.
- On July 22, 2021, APD officers arrived at an apartment on Center Street in Atlanta in response to a 911 call from a woman who reported that someone had threatened her with a gun. The officers met with the victim and saw injuries to the victim’s left eye, mouth, and left jaw. The victim reported that Donald Johnson, 36, of Atlanta, Georgia, struck her in the left eye and mouth and later pointed a gun at her and threatened to kill her. The victim was subsequently hospitalized with a broken jaw. Johnson was eventually taken into local custody. APD officers recovered a loaded Smith and Wesson 38 Special revolver from a wooded area near the victim’s residence. The victim had reported to officers that they would find the gun in that area where Johnson attempted to hide it. At the time of his arrest, Johnson had been convicted of nine felony offenses and a misdemeanor offense of domestic violence. On August 24, 2021, a federal grand jury indicted Johnson for the offense of possessing a firearm after having been convicted of a felony offense.
- On May 12, 2021, APD officers, while on routine patrol in the New Town residential area in Atlanta, encountered Drashawn Mitchell, 26, of Atlanta, Georgia, who had an active warrant in Fulton County for committing a burglary while on probation. After initially resisting arrest, Mitchell was taken into custody. During a post-arrest search of Mitchell’s vehicle, the officers recovered a loaded Taurus G2C 9mm pistol, an extended 9MM magazine, a digital scale, and illegal drugs, including heroin and cocaine. On September 14, 2021, a federal grand jury indicted Mitchell for the offenses of drug trafficking and possessing a firearm in furtherance of that trafficking offense, and possessing a firearm after having been convicted of a felony offense.
- On November 28, 2020, an APD officer encountered Antonio Cooper, 35, of Atlanta, Georgia, at a supermarket in Atlanta. Cooper attempted to conceal a black Ruger 9mm pistol by tossing the firearm near an ATM machine in the store. Cooper’s prior criminal history includes 2020 convictions for aggravated assault and aggravated battery, and numerous drug trafficking offenses. On September 21, 2021, a federal grand jury indicted Cooper for the offense of possessing a firearm after having been convicted of a felony offense.
All of these defendants have been federally detained pending trial. Members of the public are reminded that the indictments only contain charges. The defendants are presumed innocent of the charges and it will be the Government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This operation was part of the district’s PSN program and led by the U.S. Attorney’s Office and Fulton County District Attorney’s Office. 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 serious violent crime problems in the community and to develop comprehensive solutions to address them. As a part of this strategy, PSN focuses enforcement efforts on the most violent offenders, and supports and fosters partnerships between law enforcement and schools, the faith community, local community leaders, and locally-based prevention and reentry programs – all to prevent and deter future criminal conduct and to achieve sustainable reductions in crime.
These cases are being investigated by the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Atlanta Police Department, and Georgia State Patrol.
Assistant U.S. Attorneys Natasha Cooper, Stephanie Gabay-Smith, Lauren Macon, Amy Palumbo, Erin Sanders, and Erin Spritzer are prosecuting these cases.
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.
Alexandria Man Pleads Guilty to Distributing Fentanyl and Illegally Possessing a FirearmRead the Press Release
ALEXANDRIA, La. - Acting United States Attorney Alexander C. Van Hook announced that Dustin O. Thompson, 36, of Alexandria, Louisiana, has pleaded guilty to federal drug trafficking and firearm charges. The hearing was held before United States District Judge Dee D. Drell in Alexandria.
A federal grand jury returned an indictment on August 28, 2019 charging Thompson with two drug trafficking offenses and two additional counts involving the illegal possession of firearms. On October 4, 2021, Thompson pleaded guilty to possession with intent to distribute fentanyl and possession a firearm in furtherance of drug trafficking.
The charges in this case stem from an incident on March 12, 2018 when Thompson distributed a controlled substance to an individual in Alexandria and represented to him that the substance was heroin, when in truth and in fact, it was fentanyl. After consuming what he thought to be heroin, but in fact was fentanyl, the individual became unconscious and crashed his vehicle into the Alexandria, Louisiana Police Department. Law enforcement officers administered NARCAN in order to revive him. He was then taken to a local hospital where a NARCAN drip was administered to him for an extended period of time.
Later that day following the crash, law enforcement officers searched Thompson’s residence and found three loaded firearms, 54 grams of fentanyl, and a large sum of cash. In pleading guilty to the charges, Thompson admitted that he intended to distribute the fentanyl to other individuals.
Thompson faces a maximum sentence of 20 years in prison for the narcotics conviction and not less than 10 years for the firearm conviction. He also faces not less than three years of supervised release, and a fine of up to $1,000,000.
The FBI, ATF and Alexandria Police Department investigated the case. Assistant U.S. Attorneys Seth D. Reeg and J. Aaron Crawford prosecuted the case.
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4 October 2021
Wyoming Man Pleads Guilty to Sexual Exploitation of Idaho ChildRead the Press Release
POCATELLO – A Wyoming man pleaded guilty to sexual exploitation of a minor child.
According to court records, James Colton Giannell, 23, of Sheridan, Wyoming, admitted that he asked Andrew John Jemmett, over the Internet, to produce child pornography for him in April 2019, while Jemmett was in Idaho. Jemmett used an eight-year-old child to create pornographic videos that he sold online to Giannell for $150. The videos were produced in a public restroom in Pocatello. Jemmett later used Snapchat to share the videos with Giannell. Law enforcement interviewed Giannell following his arrest and after waiving his Miranda rights, Giannell admitted to requesting and paying for the videos to be produced.
Giannell was indicted by a federal grand jury in Pocatello on August 25, 2020. He is scheduled to be sentenced on January 4, 2022 and faces a minimum of 15 years and up to 30 years in federal prison, a maximum fine of $250,000, and up to a lifetime of supervised release. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the cooperative efforts of Homeland Security Investigations in Idaho Falls, the Idaho Internet Crimes Against Children Task Force, Pocatello Police Department, and Las Vegas Metropolitan Police Department, which led to charges.
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. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Wayne County Man Charged with Enticement of A MinorRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on October 1, 2021, Michael Jacob Walczyk, age 41, of Beach Lake, Pennsylvania, was charged by a criminal information with enticement of a minor.
According to Acting United States Attorney Bruce D. Brandler, the information alleges that between July 10, 2019 and September 2020, Walczyk knowingly persuaded, induced, enticed, and coerced a victim under the age of 18 to engage in sexual activity for the purposes of producing child pornography.
The case was investigated by the Federal Bureau of Investigation (FBI). Assistant U.S. Attorney Sean A. Camoni is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is life imprisonment, 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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Tulsa Man Sentenced for 2019 MurderRead the Press Release
A Tulsa man was sentenced today in federal court for shooting and killing a man as he tried to flee from the defendant, announced Acting U.S. Attorney Clint Johnson.
“Anthony Ahaisse was sentenced to 35 years in prison for the murder of Gregory Collins. I am thankful to the team of agents, officers and federal prosecutors whose work led to Ahaisse’s conviction and sentence,” said Acting U.S. Attorney Clint Johnson. “This malicious crime has forever changed the lives of the victim’s family. I hope today’s sentence will bring some form of closure to his friends and family as they continue in the healing process.”
U.S. District Judge Claire V. Eagan sentenced Anthony Drake Ahaisse, 31, to 420 months in federal prison followed by five years of supervised release.
Ahaisse pleaded guilty on June 15, 2021, to second degree murder.
Ahaisse admitted to murdering Gregory Collins on March 23, 2019, just after 12 am. According to a criminal complaint initially filed in the case, a witness to the crime reported that the victim heard a loud noise outside the home and went to investigate. The victim then ran back to a bedroom and tried to hide under the bed. The witness saw Ahaisse, her ex-boyfriend, enter the room and shoot twice under the bed, striking the victim. The defendant then exited the room.
At approximately 12:20 am, a Tulsa police officer observed a white pickup traveling at a high rate of speed. When the officer attempted to stop the pickup, the driver continued recklessly. Eventually, the driver stopped and was taken into custody and identified as Anthony Ahaisse. The officer observed blood on the defendant’s clothing and discovered a loaded Glock 22 and a shotgun. The Glock recovered from the vehicle was later found to match the ballistics from the crime scene.
The Tulsa Police Department and FBI conducted the investigation. Assistant U.S. Attorneys Dennis A. Fries and Richard M. Cella prosecuted the case.
Thibodaux Man Sentenced to 24 Months in Prison for Violations 0f the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that DONOVAN DIRON JOHNSON (“JOHNSON”), age 27, of Thibodaux, Louisiana was sentenced to imprisonment on September 29, 2021 in federal court before U.S. District Court Judge Jay C. Zainey for being a person convicted of a misdemeanor crime of domestic violence found in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(9).
According to court documents, on February 1, 2017, JOHNSON was found in possession of a Glock Model 22, .40 caliber pistol with an extended magazine.
Judge Zainey sentenced JOHNSON to 24 months imprisonment, 3 years of supervised release, and a $100 mandatory special assessment fee.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The U.S. Attorney’s Office praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Thibodaux Police Department.
The prosecution of the case was handled by Assistant U.S. Attorney Kathryn McHugh.
Takedown of Lane County Drug Trafficking Cell Leads to Largest Seizure of Methamphetamine in Oregon State HistoryRead the Press Release
EUGENE, Ore.—On September 15, 2021, a coordinated law enforcement operation targeting the leader and several associates of a Lane County drug trafficking cell led to the seizure of 384 pounds of methamphetamine, the largest single methamphetamine seizure in Oregon State history and valued at over a million dollars.
The operation, led by the U.S. Drug Enforcement Administration (DEA) with assistance from the Springfield Police Department, Eugene Police Department, and Linn Interagency Narcotics Enforcement Team (LINE) came after the cell’s leader, Martin Manzo-Negrete aka Javier Cardenas-Manzo, a 47-year-old Eugene resident, was charged by federal criminal complaint with possessing with intent to distribute methamphetamine. Manzo-Negrete has a long history of drug trafficking and previously served 14 years in federal prison.
Manzo-Negrete was arrested during the operation and made his first appearance in federal court on September 16, 2021. He was ordered detained pending further court proceedings.
Four of Manzo-Negrete’s associates were also arrested and are facing federal drug charges. They include Eugene residents Gustavo Manzo-Mares, 45; Candice L. Barrett, 52; John C. Willis, 59; and Nathan Lee Daniels, 46. A fifth associate, Frank Buehler, 52, also of Eugene, has been charged, but remains at large.
As part of the operation, law enforcement executed federal search warrants at multiple locations in Lane County. In addition to methamphetamine, they seized 14 firearms—some of which were stolen—and more than $76,000 in cash.
DEA and the Eugene Police Department Street Crimes Unit began investigating the Manzo-Mares cell in October 2020 for its role in trafficking large quantities of methamphetamine from California to Oregon for resale in and around Lane County. The drug trafficking organization transported large quantities of methamphetamine by car from Southern California to Oregon. Once in Oregon, the drugs were stored, divided, and then distributed into the community.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the DEA with assistance from Springfield Police Department, Eugene Police Department Street Crimes Unit, and LINE. Assistant U.S. Attorney Joseph H. Huynh is prosecuting the case.
A criminal complaint is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty.
Bags of seized methamphetamine. Seized firearms. Bags of seized cash.St. Paul Man Indicted for Shipping Heroin into Minnesota Correctional FacilityRead the Press Release
MINNEAPOLIS – A St. Paul man has been indicted by a federal grand jury for attempted distribution and possession with intent to distribute heroin, and for illegally possessing firearms as a felon, announced Acting U.S. Attorney W. Anders Folk.
According to court documents, on April 12, 2021, Walter Davis, a/k/a “Disney,” 39, attempted to distribute a substance containing heroin by depositing it into the United States mail, addressed to one or more recipients at a Minnesota state correctional facility. On April 16, 2021, Davis also possessed a Smith & Wesson .38 Special revolver, a Rossi .357 Magnum revolver, and over 100 grams of heroin. Davis has multiple prior felony convictions in Ramsey and Hennepin Counties and therefore is prohibited from possessing firearms or ammunition at any time.
Davis is charged with one count of attempted distribution of a controlled substance, one count of possession with intent to distribute a controlled substance, and two counts of possessing a firearm as a felon.
This case is the result of an investigation conducted by the United States Postal Inspection Service and the Minnesota Department of Corrections.
Assistant U.S. Attorney Ruth S. Shnider is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
South Florida School Teacher Sentenced to Federal Prison Term for Possessing Child PornographyRead the Press Release
Miami, Florida – A federal district judge in Miami has sentenced 27-year-old Hialeah resident Roberto Ortiz to 78 months’ imprisonment, followed by eight years of supervised release, for possessing approximately 1,700 images and 40 videos of child pornography.
From 2019 until his arrest on July 30, 2020, Ortiz worked as a mathematics teacher at American Senior High School, a public school in South Florida. Prior to that, Mr. Ortiz served as a teacher at Jose Marti High School in Miami and at Youth Co-Op Preparatory Charter School in Hialeah, a school which includes students as young as five.
Based on information presented to the court, agents with the Federal Bureau of Investigation (FBI) executed a search warrant for Ortiz’s home after their investigation determined that a computer user at the residence was downloading and sharing child pornography by means of peer-to-peer file-sharing software. Pursuant to their search, agents seized several electronic devices from the home, including a laptop belonging to Ortiz. A forensic analysis of that laptop revealed over 1,700 files of child pornography.
On April 13, Ortiz pled guilty to possessing visual depictions of minors engaged in sexually explicit conduct. U.S. District Judge Marcia G. Cooke imposed the sentence.
Juan Antonio Gonzalez, Acting United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI Miami, announced the sentence.
FBI Miami investigated the case. Assistant U.S. Attorney Sajjad Matin prosecuted it.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.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 at http://pacer.flsd.uscourts.gov, under case number 20-cr-20206-MGC.
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Skaneateles Man Arraigned on Child Pornography ChargeRead the Press Release
SYRACUSE, NEW YORK – Marc L. Leonardis, age 49, of Skaneateles, New York, was arraigned today on an indictment filed by a federal grand jury charging him with Receipt of Child Pornography, announced Acting United States Attorney Antoinette T. Bacon, Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and New York State Police Superintendent Kevin P. Bruen.
An indictment unsealed in federal court charges that from April through June of 2021 Leonardis used an instant messaging application to knowingly receive image and video files of child pornography.
If convicted, Leonardis faces a mandatory minimum sentence of 5 years, and a maximum sentence of 20 years imprisonment, a fine of up to $250,000, a term of supervised release of at least 5 years and up to life, and will have to register as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Leonardis is detained in federal custody pending a detention hearing scheduled before United States Magistrate Miroslav Lovric on Thursday, October 7, 2021.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
This case was investigated by the Federal Bureau of Investigation’s Capital Area and Mid-State Child Exploitation Task Forces, in cooperation with the New York State Police. It is being prosecuted by Assistant U.S. Attorney Lisa M. Fletcher, Project Safe Childhood Coordinator for the Northern District of New York.
Seal Cove Man Pleads Guilty to Multiple Child Pornography OffensesRead the Press Release
BANGOR, Maine: A Seal Cove man pleaded guilty today in federal court to three counts of producing child pornography, one count of transporting child pornography and one count of possessing child pornography, Acting U.S. Attorney Donald E. Clark announced.
According to court records, on July 6, 2020, Keegan T. Richardson, 28, entered a private chat group on the internet and began communicating with an FBI undercover agent. This chat group was known to the agent as a place where people met, discussed and traded original images of underage children and links containing child pornography. Richardson confirmed that he had access to a female minor and shared multiple sexually explicit images of the minor with the agent. Shortly afterwards, a search warrant was obtained for Richardson’s residence and phone, and he was arrested. Investigators later learned that he had access to two other minors. On his phone, a forensic examiner found multiple sexually explicit images of all three minors. Richardson had taken the images with his phone. The forensic examiner also found multiple additional images of sexually explicit conduct involving different minors on the phone.
Richardson faces a minimum of 15 years and a maximum of 30 years in prison for each production count, a minimum of five years and a maximum of 20 years in prison for the transportation count, and up to 20 years in prison for the possession count. He also faces a fine of up to $250,000 for each count, and a term of supervised release of between five years and life. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI, the Hancock County Sheriff’s Office, the Maine State Police and the Maine Drug Enforcement Agency investigated the 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 Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Seal Cove Man Pleads Guilty to Multiple Child Pornography OffensesRead the Press Release
BANGOR, Maine: A Seal Cove man pleaded guilty today in federal court to three counts of producing child pornography, one count of transporting child pornography and one count of possessing child pornography, Acting U.S. Attorney Donald E. Clark announced.
According to court records, on July 6, 2020, Keegan T. Richardson, 28, entered a private chat group on the internet and began communicating with an FBI undercover agent. This chat group was known to the agent as a place where people met, discussed and traded original images of underage children and links containing child pornography. Richardson confirmed that he had access to a female minor and shared multiple sexually explicit images of the minor with the agent. Shortly afterwards, a search warrant was obtained for Richardson’s residence and phone, and he was arrested. Investigators later learned that he had access to two other minors. On his phone, a forensic examiner found multiple sexually explicit images of all three minors. Richardson had taken the images with his phone. The forensic examiner also found multiple additional images of sexually explicit conduct involving different minors on the phone.
Richardson faces a minimum of 15 years and a maximum of 30 years in prison for each production count, a minimum of five years and a maximum of 20 years in prison for the transportation count, and up to 20 years in prison for the possession count. He also faces a fine of up to $250,000 for each count, and a term of supervised release of between five years and life. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI, the Hancock County Sheriff’s Office, the Maine State Police and the Maine Drug Enforcement Agency investigated the 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 Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
San Gabriel Valley Man Sentenced to 5 Years in Federal Prison for Role in Conspiracy to Sell Counterfeit Laptop Computer BatteriesRead the Press Release
LOS ANGELES – A Chinese national who participated in a multimillion-dollar scheme to manufacture, ship and market counterfeit laptop computer batteries and other electronics made in China was sentenced today to 60 months in federal prison.
Zoulin “Allen” Cai, 30, of La Puente, was sentenced this morning by United States District Judge John F. Walter, who also ordered the defendant to pay $9,227,543 in restitution and a $25,000 fine.
Cai pleaded guilty on June 29 to one count of conspiracy to commit wire fraud and mail fraud and one count of aggravated identity theft.
Cai was a member of a conspiracy that imported batteries, labels for batteries in laptop computers, cellphones and other electronics from China to the United States. Cai then sold and shipped the counterfeit batteries to unsuspecting buyers via eBay and Amazon, falsely advertising them as brand name, genuine, original or OEM (original equipment manufacturer) products. Those batteries bore counterfeit trademarks of companies such as Apple, Dell, HP and Toshiba, as well as counterfeit certification marks of UL, a company that tests and certifies the safety of electronic products.
“Counterfeit lithium-ion batteries have significant safety risks,” prosecutors wrote in a sentencing memorandum filed with the court. “The batteries…distributed by [Cai] frequently lacked internal safeguards, resulting in a significant risk of fire, explosion, and danger to human life and safety.”
Co-conspirators in China packaged counterfeit batteries and electronics and shipped them to the United States, sometimes covering the trademarks with black tape or a similar material, so that a quick inspection of the items by customs officials would not reveal the trademark. The counterfeit batteries were imported, sold, and shipped from Cai-controlled warehouses in La Puente.
When federal authorities executed a search warrant at Cai’s warehouse In December 2019, they discovered approximately 44,000 batteries, as well as approximately 175,000 labels bearing the counterfeit marks of multiple companies.
Judge Walter today found that the loss resulting from Cai’s conduct was more than $9.5 million.
Homeland Security Investigations investigated this matter and was assisted in this investigation by the brand-holding companies.
Assistant United States Attorneys Khaldoun Shobaki of the Cyber and Intellectual Property Crimes Section and Julia S. Choe of the General Crimes Section prosecuted this case.
San Antonio Man Sentenced to Federal Prison for Covid HoaxRead the Press Release
SAN ANTONIO – A San Antonio man was sentenced today to 15 months in prison for perpetrating a hoax related to COVID-19 in April 2020.
According to court records, a federal jury found Christopher Charles Perez, aka Christopher Robbins, 40, guilty of two counts of 18 U.S.C. § 1038, which criminalizes false information and hoaxes related to biological weapons.
Evidence presented during trial revealed that Perez posted two threatening messages on Facebook in which he claimed to have paid someone who was infected with COVID-19 to lick items at grocery stores in the San Antonio area to scare people away from visiting the stores. On April 5, 2020, a screenshot of the initial posting was sent by an online tip to the Southwest Texas Fusion Center (SWTFC), which then contacted the FBI office in San Antonio for further investigation. The threat was false. Perez did not pay someone to intentionally spread coronavirus at grocery stores, according to investigators and Perez’s own admissions.
In addition to the sentence, Perez was ordered to pay a $1,000 fine.
“Trying to scare people with the threat of spreading dangerous diseases is no joking matter,” said U.S. Attorney Ashley C. Hoff. “This office takes seriously threats to harm the community and will prosecute them to the full extent of the law.”
“Those who would threaten to use COVID-19 as a weapon against others will be held accountable for their actions, even if the threat was a hoax,” said FBI San Antonio Division Special Agent in Charge Christopher Combs. “Perez’s actions were knowingly designed to spread fear and panic and today’s sentencing illustrates the seriousness of this crime. The FBI would like to thank our law enforcement partners for their help in this case.”
The FBI’s Joint Terrorism Task Force, along with Weapons of Mass Destruction personnel, conducted this investigation. Assistant U.S. Attorneys William R. Harris, Kelly Stephenson and Mark Roomberg prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Rockford Man Arrested on Child Pornography ChargeRead the Press Release
ROCKFORD — A Rockford man has been arrested on a charge of possessing child pornography.
GREGORIO JOSEPH BACINO, 24, was arrested Friday. A federal indictment charged him with possessing child pornography in June 2021.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Angie Salazar, Special Agent-in-Charge of the Chicago Office of U.S. Homeland Security Investigations. The government is represented by Assistant U.S. Attorney Robert S. Ladd.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Possession of child pornography carries a maximum sentence of 20 years in federal prison, and a $250,000 maximum fine. If Bacino is convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Robber Who Donned Medical Masks During String of Heists that Targeted Pharmacies Sentenced to over Nine Years in Federal PrisonRead the Press Release
RIVERSIDE, California – A Riverside County man with a three-decade history of crimes was sentenced this afternoon to 110 months in federal prison for a month-long robbery spree of pharmacies in the Inland Empire while wearing medical masks.
David Anthony Battle, 50, of Moreno Valley, was sentenced by United States District Judge Jesus G. Bernal after pleading guilty on March 25 to six felony counts of interference with commerce by robbery (Hobbs Act robbery).
“In this case, [Battle] exploited a public health crisis by robbing essential businesses while concealing his face behind a medical mask,” prosecutors wrote in a sentencing memorandum filed with the court.
According to court documents, from July 6 through August 10, 2020, Battle robbed six pharmacies – Walgreens, CVS, and Rite Aid outlets – in Moreno Valley, Colton and San Bernardino. He also attempted to rob two other Moreno Valley pharmacies.
During each incident, Battle wore similar clothing – including medical masks covering his nose and mouth – and brandished what appeared to be a handgun, Battle admitted in court. He then demanded that money from the cash register be placed in a bag and handed over.
When he was arrested during an attempted robbery of a Moreno Valley Walgreens, Battle was carrying a black BB gun with labeled with “Glock” logos on the barrel and the grip, court documents state.
Battle netted $5,453 in illicit gains from the robberies, more than half of which came from a July 6 robbery of a Walgreens store in Moreno Valley.
Since 1989, Battle has sustained 46 felony convictions and has been sentenced to a total of 66 years of incarceration, “and his history shows that he has been incapable of rehabilitation,” according to the sentencing memo. Prosecutors noted that Battle previously has been found guilty of violent crimes, including a 1994 conviction for false imprisonment by violence while impersonating an officer – one of seven convictions where his conduct involved impersonating a police officer or fire official.
“Although he gained thousands of dollars through his robberies, the traumatic impact of [Battle]’s crimes is much more consequential than his selfish monetary gains,” according to the sentencing memo. “Indeed, though it is impossible to quantify the true psychological and mental harms caused by [his] crimes – the medical expenses for just two of the victims has already reached $29,000. That amount reflects a fraction of the harm the victims have suffered.”
The FBI, the Riverside County Sheriff’s Department, the San Bernardino Police Department, and the Colton Police Department investigated this matter.
Assistant United States Attorney Peter H. Dahlquist of the Riverside Branch Office prosecuted this case.
Port Angeles, Washington, man sentenced to home confinement, probation for assaulting helicopter crew with high-powered laserRead the Press Release
Tacoma – A 36-year-old Port Angeles, Washington, man pleaded guilty and was sentenced this morning to probation and home confinement in connection with a September 26, 2016, laser pointer strike on a U.S. Coast Guard helicopter, announced Acting U.S. Attorney Tessa M. Gorman. Randall Muck pleaded guilty to misdemeanor assault on a federal officer. U.S. District Judge Benjamin H. Settle told Muck, “What you did was extremely reckless, even if you didn’t intend to strike the helicopter.” Judge Settle ordered Muck to be on 90 days home confinement with electronic monitoring as part of his one-year period of probation.
Muck was indicted in May 2019, charged with aiming a laser pointer at an aircraft and making false statements to government agents. In pleading guilty to assault on a federal agent, Muck admitted that on the evening of September 26, 2016, he pointed a high-powered laser beam at a Coast Guard helicopter. According to reports of the incident, the MH-65 Dolphin helicopter was descending when it was hit by a laser that originated near Fourth and Hill Streets in Port Angeles. Laser light can cause temporary loss of vision and force an air crew to abort its mission. In this incident, no one suffered permanent damage, but the crew had to return to base and be assessed medically before returning to duty. In the sentencing memo, prosecutors noted that because the helicopter crew was grounded for a time, the region was without a local emergency response helicopter crew.
Sentencing documents reveal Muck was identified as a suspect, when coworkers reported he had been bragging about the incident at work. Later when Muck learned of the criminal investigation, he made statements that co-workers should not report his involvement to law enforcement, or he would retaliate. Muck is no longer employed by that company.
The case was investigated by U.S. Coast Guard Investigative Service and the FBI. The case was prosecuted by Assistant United States Attorneys Grady Leupold and Erika Evans.
Point Pleasant Man Sentenced to 10 Years in Prison for Child Sex Trafficking OffenseRead the Press Release
CHARLESTON, W.Va. – A Point Pleasant man was sentenced today to 10 years in prison for attempted sex trafficking of a minor. Dale Randall McCarthy, Jr., 51, pleaded guilty to the offense in May 2021.
According to the plea agreement and statements made in court, McCarthy admitted that on August 8, 2020, he agreed with a man he met online to pay $100 to have sex with a 14-year-old girl that would be supplied by the other man. McCarthy met with the man at a motel in Dunbar and paid the man $40 up front for sex with the girl, with the remainder to be paid after the sexual activity. After paying the man $40, McCarthy was placed under arrest. McCarthy further admitted that he had previously used Craigslist to communicate with minors about meeting for sexual activity. In one such conversation, McCarthy admitted to requesting and receiving a sexually explicit image of a person who stated they were a minor.
Upon release from prison, McCarthy will be placed on federal supervised release for a period of 10 years and will be required to register as a sex offender.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the FBI Child Exploitation and Human Trafficking Task Force.
Senior United States District Judge John T. Copenhaver, Jr., imposed the sentence. Assistant United States Attorney Jennifer Rada Herrald handled the prosecution.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00160.
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Pierre Man Sentenced for Conspiracy to Distribute MethRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Pierre, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on October 4, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Daniel James Boe, age 36, was sentenced to 37 months in federal prison, followed by 3 years of supervised release, $1,000 fine, and a $100 special assessment to the Federal Crime Victims Fund.
Boe was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on December 8. 2020. He pled guilty on July 15, 2021.
Beginning in January of 2017, Boe was involved in a conspiracy to distribute methamphetamine in and around the Pierre area and central South Dakota. Boe was involved with the distribution of 200-350 grams of methamphetamine.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan Dilges prosecuted the case.
Boe was immediately turned over to the custody of the U.S. Marshals Service.
Philadelphia man sentenced for heroin and fentanyl distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Richard Gaines, of Philadelphia, Pennsylvania, was sentenced today to 151 months of incarceration for opioid distribution, Acting U.S. Attorney Randolph J. Bernard announced.
Gaines, age 46, pled guilty in July 2020 to one count of “Possession with Intent to Distribute Heroin and Fentanyl.” Gaines admitted to having heroin and fentanyl in June 2017 in Berkeley County. The night of his arrest, Gaines fled from police during a traffic stop in Martinsburg at a high rate of speed, hitting a tree. During the hearing today, it was mentioned that Gaines, who is not a drug user, was in Martinsburg for the sole reason of selling drugs. He is labeled as a career offender, with a previous violent crime conviction and another felony drug conviction.
These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, the West Virginia State Police, and the Martinsburg Police Department investigated.
Chief U.S. District Judge Gina M. Groh presided.
New York Woman Admits Entering Sham Marriage in Immigration Fraud CaseRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that on October 1, 2021, AUDREY BONET JOHNSON, 34, of Brooklyn, New York, pleaded guilty in New Haven federal court to conspiracy to commit immigration marriage fraud.
According to court documents and statements made in court, on March 1, 2012, Johnson, a U.S. citizen, and Shanon St. Aubyn Stephenson, a citizen of Jamaica, entered into a fraudulent marriage. Shortly thereafter, Johnson and Stephenson applied to the U.S. Citizenship and Immigration Service (“USCIS) for Stephenson to become a lawful permanent resident of the U.S., often called a “green card.” Following an interview with the USCIS in 2012, Stephenson was issued a temporary, two-year green card. In subsequent submissions and statements to the USCIS, Johnson and Stephenson claimed to be married and living together in Brooklyn, New York. In fact, Stephenson married Jodian Stephenson, also known as Jodian Gordon, in 2010, and lived with her, and not Johnson, in Bridgeport, Connecticut.
Johnson is scheduled to be sentenced by U.S. District Judge Michael P. Shea in Hartford on January 4, 2022, at which time she faces a maximum term of imprisonment of five years.
This investigation revealed that Jodian Stephenson, a citizen of Jamaica, operated Stephenson Immigration and Legal Services, LLC, in Bridgeport. Between 2011 and 2017, she conspired with others to arrange 28 sham marriages between U.S. citizens and non-citizens residing in the U.S. for the purpose of the non-citizens’ applying for and obtaining green cards. One of the sham marriages was between Johnson and Shanon Stephenson, and another was between Jodian Stephenson and a U.S. citizen. Jodian Stephenson typically found and introduced a U.S. citizen to be the non-citizen’s purported spouse and helped the couple obtain a marriage license. She also organized the marriage ceremony and celebration, coached the couple on how to make their marriage appear to be genuine despite their neither living together nor otherwise intending to remain actually married, and prepared and helped submit several immigration documents needed as part of the non-citizen’s green card application. Jodian Stephenson typically charged between $17,000 and $20,000 to complete this process for a non-citizen, and the citizen spouse received between $2,000 and $4,000 for his or her participation.
Jodian Stephenson and Shanon Stephenson each previously pleaded guilty to conspiracy to commit immigration marriage fraud. On August 26, 2021, Jodian Stephenson was sentenced to six months of imprisonment. Shanon Stephenson awaits sentencing.
A total of 10 individuals were charged as a result of this investigation, and all pleaded guilty. Removal proceedings have been or are being commenced against all individuals whose green card applications were found to have been based on sham marriages.
This investigation has been conducted by Homeland Security Investigations (HSI) and the U.S. Citizenship and Immigration Service’s Office of Fraud Detection and National Security. The case is being prosecuted by Assistant U.S. Attorney Henry K. Kopel.
Missouri Woman Indicted for Tampering with Hospitals’ FentanylRead the Press Release
KANSAS CITY, KAN. – A federal grand jury in Kansas City, Kansas, returned an indictment charging a nurse from Kansas City, Missouri, with two counts of tampering with a consumer product and two counts of possession of fentanyl by deception and subterfuge.
According to court documents, between January 2020 and April 2020 Faith Naccarato, 41, allegedly used her fingerprint to remove vials of fentanyl from an automated dispensing cabinet at Menorah Medical Center in Overland Park. She is accused of replacing the fentanyl with an alternant liquid substance before placing the vials back in the cabinet.
Between February 2020 and April 2020, Naccarato allegedly took vials of fentanyl from an automated dispensing cabinet at AdventHealth Shawnee Mission in Meriam. She is accused of replacing the fentanyl with an alternate liquid substance and then placing the vials back in the cabinet.
The Drug Enforcement Administration is investigating the case.
Assistant U.S. Attorneys Faiza Alhambra and Trent Krug are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Louisville Man Indicted for Illegally Possessing FirearmRead the Press Release
Louisville, Kentucky – A federal grand jury in Louisville returned an indictment on September 22, 2021, charging Antonio D. Williamson, 34, with being a felon in possession of firearm.
According to the indictment and criminal complaint, on May 22, 2021, the Louisville Metro Police Department (LMPD) arrested Williamson after it was reported that a man pointed a firearm at another person at the drive through of a restaurant on Eastern Parkway in Louisville. Williamson was arrested by LMPD for Receiving stolen property over $10,000, obscuring the identity of a machine over $10,000, and no operator’s license. He provided the name “Naz Bey.” LMPD officers observed a firearm, later identified as a CZ-USA Scorpion Evo 3 Sl, near the center console of the vehicle within reach of the driver. Law enforcement officers later determined that “Naz Bey” was Antonio D. Williamson, a convicted felon.
The grand jury indicted Williamson for being a felon in possession of a firearm in violation of Title 18, United States Code, Section 922(g). On September 21, 2021, the defendant appeared before U.S. Magistrate Judge Colin H. Lindsay of the U.S. District Court for a detention hearing. Judge Lindsay detained Williamson detained pending trial, which is scheduled for November 29, 2021, before U.S. District Judge Rebecca Grady Jennings.
If convicted, Williamson faces up to 10 years in prison, a $250,000 fine, and up to 3 years of supervised release. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Michael A. Bennett made the announcement.
Assistant U.S. Attorney Joshua Judd is prosecuting the case. The FBI and LMPD investigated the case with assistance from the ATF.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Logan County Man Sentenced to 10 Years in Prison for Federal Gun CrimesRead the Press Release
CHARLESTON, W.Va. – A Logan County man was sentenced today to 10 years in prison for possession of firearms in furtherance of a drug trafficking crime and being a felon in possession of firearms.
According to court documents and statements made in court, Clifford Lee Griffin, 38, of Bruno, was arrested on the evening of September 30, 2019, at a residence in the Gilman Bottom area of Logan County where he had been selling drugs. Griffin was arrested by members of the West Virginia State Police who were executing a search warrant due to drug activity at the location. Troopers recovered two loaded handguns, over 75 grams of methamphetamine and over 100 grams of heroin. Griffin admitted that he possessed the guns to protect his drugs and money.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the West Virginia State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney Nowles Heinrich handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00163.
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Leader of Cellphone Account Takeover Fraud Scheme Pleads GuiltyRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced that defendant HENRY PEREZ pled guilty today to leading a multi-year cellphone account takeover fraud conspiracy. PEREZ impersonated legitimate cellphone accountholders in order to fraudulently obtain smartphones and electronic devices that he charged to compromised accounts. The fraud scheme also caused more than 300 victims across the United States to lose cellphone service for a period of time. PEREZ pled guilty before U.S. District Judge Richard M. Berman, to whom the case is assigned.
Manhattan U.S. Attorney Audrey Strauss said: “As he admitted today, Henry Perez led a sophisticated fraud scheme that impersonated victims, changed victims’ account information so victims would not receive fraud alerts, charged purchases to victims’ accounts, and deprived victims of cellphone service. Thanks to the dedicated work of our partners at Homeland Security, Perez stands convicted of this cellphone fraud scheme and now awaits sentencing for his crime.”
According to the allegations in the Indictment, public court filings, and statements made in court:
From June 2017 through December 2019, PEREZ was the leader of a criminal fraud ring that committed cellphone account takeover fraud and identity theft across the United States, including in the Southern District of New York. The scheme’s primary objective was to obtain new, valuable electronic devices, including iPhones, and charge these purchases to victims’ accounts, without the knowledge or consent of the victim accountholders. Over the course of the conspiracy, participants in the scheme attempted to fraudulently obtain more than $1 million worth of devices and, in fact, fraudulently obtained more than $530,000 worth of devices (e.g., iPhones, iPads, and AirPods), by charging purchases to victims’ accounts.
To conduct the scheme, members of the conspiracy, including PEREZ, used stolen identity information to impersonate victims who had cellphone accounts with a particular cellphone service provider (“Provider-1”). Members of the conspiracy then called customer service representatives of Provider-1 and used social engineering techniques to take over accounts by making various misrepresentations, including impersonating accountholders and expressing a purported need to regain access to their accounts. Through these misrepresentations, conspirators were able to gain unauthorized access to, and control of, accounts belonging to victim accountholders. Once they gained access, members of the conspiracy made various unauthorized changes to victim accounts, so that fraud alerts and emails relating to account changes were sent to a conspiracy member, rather than to the legitimate accountholders. Participants in the conspiracy then purchased new electronic devices, which they charged to victim accounts, without the knowledge or consent of the victims.
In many instances, conspirators arranged for the fraudulently ordered devices to be shipped to addresses under their control. In other instances, members of the scheme, including PEREZ, personally entered stores operated by Provider-1 to pick up fraudulently obtained devices. In total, participants in the conspiracy conducted in-store pickups of fraudulently obtained devices in at least 10 different states.
Once they had successfully exploited a particular victim’s account, members of the conspiracy typically relinquished control of that account, and moved on to exploiting other victim accounts. During the period in which the conspiracy compromised, and retained control of, a particular victim’s cellphone account, that victim typically lost cellphone service. In total, the scheme caused more than 300 victims across the United States to lose cellphone service for a period of time.
PEREZ was integrally involved in all aspects of the scheme, including using victims’ personal identifying information to dupe Provider-1; gaining unauthorized access to victim accounts; making unauthorized changes to victim accounts; receiving fraudulently obtained devices; and recruiting, directing, and paying a subordinate, including supplying that subordinate with victim information.
PEREZ, 33, of Fort Lee, New Jersey, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
PEREZ is scheduled to be sentenced by Judge Berman on January 18, 2022, at 10:00 a.m. Under the terms of his plea agreement, PEREZ also agreed to pay restitution of $539,654.96 and forfeiture of $532,374.96.
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Ms. Strauss praised the New York Office of Homeland Security Investigations (“HSI”) and its El Dorado Task Force for its outstanding work on this case.
This matter is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Michael D. Neff is in charge of the prosecution.
Lakeland Man Sentenced to Federal Prison for Theft of Public Money and Aggravated Identity TheftRead the Press Release
Tampa, Florida – U.S. District Judge William F. Jung has sentenced Julio Gonzales (45, Lakeland) to 2 years and 10 months in federal prison for theft of public money and aggravated identity theft. As part of his sentence, the court also ordered Gonzalez to pay $110,102.90 in restitution and, separately, entered a forfeiture money judgment against him in the amount of $28,527, the proceeds of the offense of conviction.
Gonzalez had pleaded guilty on June 22, 2021.
According to court documents, from February 2014 through February 2018, Gonzales stole Social Security benefit payments made by the Social Security Administration on behalf of four individuals. In total, Gonzalez knowingly and willfully stole approximately $110,102 in benefits to which he was not entitled. In addition, Gonzales used the identity of an unsuspecting U.S. citizen to commit Social Security fraud.
This case was investigated by the Social Security Administration, Office of the Inspector General. It was prosecuted by Special Assistant United States Attorney Suzanne Huyler.
Knoxville YWCA Receives $475,000 in Federal Funding for Housing AssistanceRead the Press Release
KNOXVILLE, Tenn. – The Young Woman’s Christian Association of Knoxville and the Tennessee Valley (YWCA) will receive $475,000 from the Department of Justice’s Office on Violence Against Women (OVW) to support YWCA’s affordable transitional housing program, announced Acting United States Attorney Francis M. Hamilton III.
YWCA's Safer and Stronger Transitional Housing Program offers transitional housing to victims of domestic violence and their families. This transitional housing program offers financial education, parenting education, and trauma-informed care, including support groups and classes specifically for victims of domestic violence.
This award is one of many that OVW is distributing in 2021 to support projects that meaningfully address the needs of underserved and marginalized survivors, improve access to justice, enhance survivor safety, hold offenders accountable, and build a coordinated community response to violence against women.
The Office on Violence Against Women provides federal leadership in developing the national capacity to reduce violence against women and administer justice for and strengthen services to victims of domestic violence, dating violence, sexual assault, and stalking.
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Kansas Woman Sentenced for Sex Trafficking a 16-Year-Old VictimRead the Press Release
A Kansas woman was sentenced Monday in federal court for partnering with two others in a sex trafficking ring that prostituted a 16-year-old in Tulsa, announced Acting U.S. Attorney Clint Johnson.
Chief U.S. District Judge John F. Heil III sentenced Rontaysha Leann Cox, 28, of Wichita, Kansas, to 15 years in federal prison followed by a lifetime of supervised release.
On March 19, 2021, Cox pleaded guilty to sex trafficking of children. Cox admitted that she and two others named in the indictment engaged in the commercial sex trade and recruited, enticed, harbored, transported, and maintained a 16-year-old victim and provided the minor for sex in return for profit. In her written statement, Cox said that she assisted and instructed the victim with taking sexually explicit photographs of herself and assisted the victim with posting advertisements on websites that promoted prostitution and arranged commercial sex acts.
“Targeting and exploiting minors for the commercial sex trade is shameful, inexcusable, and criminal” said Acting U.S. Attorney Clint Johnson. “Every child deserves the full protection of the law. The U.S. Attorney’s Office and our law enforcement partners will hold accountable anyone who engages in the sex trafficking of children, whether as a trafficker or a customer.”
Previously, codefendant Dominque Laron Morgan, 26, pleaded guilty to possession of a firearm in furtherance of a drug trafficking crime and coercion an enticement of a minor to engage in sexual activity and was later sentenced to 25 years in prison followed by 25 years of supervised release.
Also, codefendant Treveon Marquise Cato, 23, of Tulsa, pleaded guilty to possession of a firearm in furtherance of a drug trafficking crime and was later sentenced to five years in prison followed by five years of supervised release.
On April 17, 2020, officers with the Tulsa Police Department’s Human Trafficking Vice Unit discovered advertisements for the teenager on a website promoting prostitution and soliciting sex acts in exchange for money. An officer, acting as a john, contacted the victim using the phone number listed and arranged to meet her on April 20. During the appointment, the officer revealed his identity, and the minor victim was taken into protective custody.
Officers learned that Rontaysha Cox had rented the room, and that Cox and two other men left the hotel room in a silver sedan shortly before the scheduled appointment. Cox, Cato, and Morgan were later stopped and ordered out of the sedan. A semi-automatic pistol could be seen from outside of the vehicle wedged between the driver’s seat and center console. Officers subsequently arrested the three, and during a search of the vehicle and the occupants, officers recovered marijuana, phones and the firearm.
An analysis of the phones found conversations between Cox, Morgan and the victim discussing prostitution as well as photos of the victim that constituted child pornography. Also found, were conversations between Morgan and the victim where she told him she was 16-years-old.
The Tulsa Police Department, Immigration and Customs Enforcement’s Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorneys Edward Snow and Christopher J. Nassar are prosecuting the case.
Kansas Man Sentenced to Three Years in Prison for Engaging in $900,000 Foreign Currency Ponzi SchemeRead the Press Release
NEWARK, N.J. – A Kansas man who executed an elaborate foreign currency Ponzi scheme that took in more than $900,000 from investors was sentenced today to 36 months in prison, Acting U.S. Attorney Rachael Honig announced.
Thomas Lanzana, 54, of Wichita, Kansas, previously pleaded guilty before U.S. District Judge John Michael Vazquez to Count One of an indictment charging him with wire fraud. Judge Vazquez imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Lanzana fraudulently solicited approximately $900,000 from at least 20 customers to invest in what he claimed were highly successful, algorithm-based trading pools in foreign currency derivatives (“forex”) and other financial instruments.
To maintain the victims’ trust, Lanzana sent false account statements to his customers, posted false monthly account statements to his companies’ websites showing balances and trading activity for forex trading accounts that did not exist, and generated and sent false tax documents to customers reporting earnings that did not exist.
Lanzana misappropriated hundreds of thousands of dollars in investor funds, using some to repay earlier investors in the manner of a Ponzi scheme, and to pay for his personal expenses, including purchases on Amazon.com, payments to a luxury car dealer and a jewelry retailer, and golf expenses.
In addition to the prison term, Judge Vazquez sentenced Lanzana to three years of supervised release.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark, with the investigation leading to today’s sentencing. She also thanked the U.S. Commodity Futures Trading Commission’s Division of Enforcement for its assistance.
The government is represented by Assistant U.S. Attorney Anthony P. Torntore of the U.S. Attorney’s Office’s Cybercrime Unit.
Kamiah Man Pleads Guilty to Second Degree MurderRead the Press Release
COEUR D'ALENE - A Kamiah man pleaded guilty to second degree murder.
According to court records, on October 30, 2020, Travis Dewayne Ellenwood, 44, of Kamiah, went out to a local bar in Kamiah with the victim, Bessie Blackeagle. During the early morning hours of October 31, they returned home to their residence where an argument ensued. During the argument, Ellenwood repeatedly struck Blackeagle and at one point strangled her until she could not breath. Though it is unknown the exact time that Blackeagle was beaten and strangled, Ellenwood eventually called 911 at approximately 5:30 p.m. and reported that Blackeagle was not breathing. Law enforcement and medical personnel responded to their residence and found Blackeagle was dead.
Chief U.S. Magistrate Judge Candy W. Dale took Ellenwood’s plea and set the case for sentencing in front of Senior U.S. District Judge B. Lynn Winmill at a future date. Ellenwood faces a maximum penalty of life in federal prison, up to a lifetime of supervised release, and a maximum fine of $250,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and credited the cooperative efforts of the Federal Bureau of Investigation, Nez Perce Tribal Police, and Idaho County Sheriff's Office, which led to charges.
“My thoughts today are with Ms. Blackeagle’s loved ones who have lost forever a family member and a friend,” said Acting U.S. Attorney Gonzalez. “This office and our partners at the FBI, Nez Perce Tribal Police, and Idaho County Sheriff's Office will steadfastly pursue justice on behalf of victims of domestic violence and their families."
Mr. Gonzalez also encourages those experiencing domestic violence or those who know of someone in need of help to reach out, “everyone deserves a relationship free from domestic violence,” he added. If you or a loved one need assistance, please reach out to the free and confidential National Domestic Violence Hotline by calling 1-800-799-SAFE, texting “START” to 88788, or visiting their website at www.thehotline.org.
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Justice Department Addresses Violent Threats Against School Officials and TeachersRead the Press Release
Citing an increase in harassment, intimidation and threats of violence against school board members, teachers and workers in our nation’s public schools, today Attorney General Merrick B. Garland directed the FBI and U.S. Attorneys’ Offices to meet in the next 30 days with federal, state, Tribal, territorial and local law enforcement leaders to discuss strategies for addressing this disturbing trend. These sessions will open dedicated lines of communication for threat reporting, assessment and response by law enforcement.
“Threats against public servants are not only illegal, they run counter to our nation’s core values,” wrote Attorney General Garland. “Those who dedicate their time and energy to ensuring that our children receive a proper education in a safe environment deserve to be able to do their work without fear for their safety.”
According to the Attorney General’s memorandum, the Justice Department will launch a series of additional efforts in the coming days designed to address the rise in criminal conduct directed toward school personnel. Those efforts are expected to include the creation of a task force, consisting of representatives from the department’s Criminal Division, National Security Division, Civil Rights Division, the Executive Office for U.S. Attorneys, the FBI, the Community Relations Service and the Office of Justice Programs, to determine how federal enforcement tools can be used to prosecute these crimes, and ways to assist state, Tribal, territorial and local law enforcement where threats of violence may not constitute federal crimes.
The Justice Department will also create specialized training and guidance for local school boards and school administrators. This training will help school board members and other potential victims understand the type of behavior that constitutes threats, how to report threatening conduct to the appropriate law enforcement agencies, and how to capture and preserve evidence of threatening conduct to aid in the investigation and prosecution of these crimes.
Threats of violence against school board members, officials, and workers in our nation’s public schools can be reported by the public to the FBI’s National Threat Operations Center (NTOC) via its national tip line (1-800-CALL-FBI) and online through the FBI website (http://fbi.gov/tips). To ensure that threats are communicated to the appropriate authorities, NTOC will direct credible threats to FBI field offices, for coordination with the U.S. Attorney’s Office and law enforcement partners as appropriate. Reporting threats of violence through NTOC will help the federal government identify increased threats in specific jurisdictions as well as coordinated widespread efforts to intimidate educators and education workers.
Jefferson County man sentenced for methamphetamine distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Michael Anthony Parkinson, of Ranson, West Virginia, was sentenced today to 108 months of incarceration for having a large amount of methamphetamine, Acting U.S. Attorney Randolph J. Bernard announced.
Parkinson, 37, pleaded guilty in May 2021 to one count of “Possession with Intent to Distribute Fifty Grams or More of Methamphetamine.” Parkinson admitted to having 50 grams or more of methamphetamine in January 2020 in Jefferson County. During a search of his residence, Parkinson had more than 400 grams of crystal meth, also known as “ice.” It was noted today that on December 21, 2019 in Maryland, he was stopped with 350 grams of crystal methamphetamine.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Eastern Panhandle Drug Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.
Jefferson County man admits to drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA –Shaquan Osullivan Kelly, of Ranson, West Virginia, has admitted to a drug charge, Acting United States Attorney Randolph J. Bernard announced.
Kelly, 25, pleaded guilty today to one count of “Distribution of Cocaine Base.” Kelly admitted to selling cocaine base, also known as “crack,” in August 2018 in Jefferson County.
Kelly faces up to 20 years of incarceration and fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The FBI; U.S. Marshals Service; Homeland Security Investigations; the West Virginia Air National Guard; the Eastern Panhandle Drug Task Force, a HIDTA-funded initiative; the West Virginia State Police, the DEA Task Force Montgomery County, Maryland; and the Frederick, Maryland, HIDTA group investigated. The EPDTF consists of the West Virginia State Police, Berkeley County Sheriff’s Office, the Jefferson County Sheriff’s Office, Ranson Police Department, the Charles Town Police Department, and the Martinsburg Police Department.
U.S. Magistrate Judge Robert W. Trumble presided.
Indian River County Armed Drug Trafficker Sentenced to Federal Prison TermRead the Press Release
Miami, Florida – Today, a South Florida federal district judge sentenced a Vero Beach drug dealer who drove around town with fentanyl, a loaded semi-automatic firearm, and tens of thousands of dollars in cash to 106 months in federal prison.
On February 23, 2020, law enforcement officers arrested 34-year-old Burnell Heiges Emlet, III, after finding him slumped over the steering wheel of a car that was sitting at a stop light. With him inside car, Emlet had a loaded semi-automatic firearm with a large capacity magazine, as well as 76 prepacked baggies of fentanyl. Emlet was charged with state crimes and released on bond. Officers arrested Emlet again on May 22, 2020, following a traffic stop. This time, Emlet had 1,700 prepackaged baggies of fentanyl and more than $55,000 in cash with him inside the car. After this arrest, Emlet’s state bond was revoked.
In 2021, a federal grand jury in the Southern District of Florida charged Emlet with federal gun and drug trafficking crimes relating to the February 2020 arrest. A federal magistrate judge ordered him detained pre-trial, without bond. On July 15, 2021, Emlet pled guilty in federal district court to possessing with intent to distribute fentanyl and possessing a firearm in furtherance of a drug trafficking crime. U.S. District Judge Donald M. Middlebrooks imposed today’s sentence.
Juan Antonio Gonzalez, Acting U.S. Attorney for the Southern District of Florida; La Verne J. Hibbert; Acting Special Agent in Charge, Drug Enforcement Administration, Miami Field Division; and David E. Currey, Chief of Police, Vero Beach Police Department, announced the sentence.
DEA Miami and Vero Beach PD investigated this case. Assistant U.S. Attorney Michael D. Porter prosecuted it.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-14012.
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Illinois Man Pleads Guilty to Money Laundering for Role in Internet-Based Fraud SchemesRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that an Illinois man pleaded guilty Friday, October 1, 2021 to conspiring with others to launder, or attempting to launder, between $550,000 and $1,500,000 from internet-based fraud schemes. Chief Judge Colm F. Connolly accepted the plea.
According to court documents, Daniel Oluwatoki Kuye, 22, received funds from businesses and individuals victimized through internet-based fraud schemes, including business email compromises and romance fraud. Kuye’s co-conspirators defrauded businesses and individuals over the internet and then instructed those victims to send the fraudulently obtained money to Kuye or to an alias Kuye used to receive the illicit proceeds. Kuye personally used a portion of the fraud proceeds and distributed the remainder to other co-conspirators.
Kuye pleaded guilty to one count of conspiracy to commit money laundering and faces a maximum penalty of 20 years in prison when sentenced. Actual sentences for federal crimes are typically less than the maximum penalties. Chief Judge Connolly will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Weiss stated, “Mr. Kuye and his co-conspirators used online scams to steal money from American businesses and to cheat citizens out of their hard-earned savings. Mr. Kuye actively aided his co-conspirators by using aliases to receive fraudulently obtained proceeds and enriched himself in the process. My office will continue to prosecute those who participate in internet-based fraud schemes in any capacity.”
“Mr. Kuye admitted to laundering money obtained from various online fraudulent schemes which can be devastating to businesses and individuals who fall prey to them,” said Tomas J. Sobocinski, Special Agent in Charge of the FBI Baltimore Field Office. “He also knowingly engaged in criminal money laundering activities, serving as a Money Mule. Money Mules assist these type of fraud schemes by receiving money from victims and forwarding proceeds to other criminals or even foreign-based perpetrators. This prosecution sends a message to all who are engaged in money mule activity that they will be caught and prosecuted. We also remind the public if you believe you have been the victim of a scam, please report it to the FBI at IC3.gov.”
This case was investigated by FBI-Baltimore Division’s Wilmington Resident Office. This case is being prosecuted by Assistant U.S. Attorney Jesse S. Wenger and Trial Attorneys Mary K. Daly and Alejandra Arias of the Criminal Division’s Money Laundering and Asset Recovery Section.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 20-cr-57-CFC.
High-ranking gang member gets substantial sentence for drug traffickingRead the Press Release
HOUSTON – A 33 year-old Houston man with a lengthy criminal history has been ordered to federal prison after packaging thousands of ecstasy pills for sale, announced Acting U.S. Attorney Jennifer B. Lowery.
Marquese Scott aka Fatboi pleaded guilty Feb. 9, 2019, to possession with intent to distribute MDMA, commonly known as ecstasy. He has been repeatedly documented as a high-ranking member of the 59 PIRU Criminal Street Gang and has many tattoos identifying him as such.
Today, U.S. District Judge Andrew S. Hanen sentenced him to a total of 210 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard about Scott’s lengthy criminal record, including aggravated sexual assault of a child, theft, multiple convictions of robbery, carjacking, drug possession, failing to register as a sex offender, unauthorized use of a vehicle and harassment of a public servant. Further, following the drug trafficking in the instant offense, Scott was convicted of dangerous conduct after he got into a fight with his co-defendant - Nicole Olajide, 33, Houston - and her mother, threatened to kill them and then slashed their tires with a knife. During sentencing, Scott attempted to introduce letters from them claiming it was Olajide’s fault he had done so.
In pronouncing the sentence, Judge Hanen noted Scott’s lengthy criminal history, including his convictions of violent crimes including his past convictions for robbery and and deadly conduct.
In 2018, Scott announced to potential buyers that he was selling several multi-kilogram quantities of meth and ecstasy. He then sent photographs of himself with several rocks of meth and “K-Packs,” which are gallon-sized baggies, each containing approximately ecstasy 1,000 pills. Scott advertised 6,000 ecstasy pills for $3,500.
Authorities executed a search warrant and found Scott and Olajide packaging ecstasy into the K-Packs. They recovered a total of approximately four kilograms of ecstasy.
Olajide had also pleaded guilty and later sentenced to 21 months in federal prison for her role in the offense.
Scott has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration and Houston Police Department conducted the investigation. Assistant U.S. Attorney Adam Laurence Goldman is prosecuting the case.
Grand Jury indicts former Creve Coeur pharmacy owner in kickback schemeRead the Press Release
ST. LOUIS – Earlier this week a federal grand jury indicted Michael McCormac with one count of health care fraud and three counts of violations of the Anti-Kickback Statute. The indictment was suppressed until today.
The indictment charges Michael McCormac, the former owner of GoLiveWell Pharmacy in Creve Coeur, Missouri with one count of health care fraud and three counts of violations of the Anti-Kickback Statute. McCormac is accused of paying kickbacks to marketing companies for referrals of prescriptions for topical creams, oral medications, and antibiotic and antifungal drugs referred to as “foot bath” drugs, which were filled by GoLiveWell and reimbursed by federal health insurance.
McCormac is accused of paying the kickbacks to marketing companies as various percentages, or “margins,” which are net profits on each prescription. The indictment also alleges that McCormac was aware that patients often did not have a valid doctor/patient relationship with the providers who signed the prescriptions and that the prescriptions were not medically necessary.
GoLiveWell primarily functioned as a mail-order pharmacy, which filled prescriptions for federal health insurance beneficiaries throughout the United States between on or about March 17, 2017 and November 30, 2019. Through the health care fraud and kickback scheme alleged in the indictment, Medicare paid at least $4.7 million to GoLiveWell to which it was not entitled, Missouri Medicaid paid at least $490,000 to GoLiveWell to which it was not entitled, and Ohio Medicaid paid at least $330,000 to GoLiveWell to which it was not entitled.
“Individuals who seek to enrich themselves through kickback fraud schemes -- as alleged in this case -- undermine the taxpayer-funded Medicare and Medicaid programs and drive up health care costs for everyone,” said Special Agent in Charge Curt L. Muller, of the U.S. Department of Health and Human Services Office of Inspector General. “We remain committed to working closely with our law enforcement partners to swiftly investigate such fraud allegations.”
Charges set forth in the indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the Office of Inspector General for the United States Department of Health and Human Services and the Federal Bureau of Investigation.
Government Contractor Agrees to Pay More Than $1 Million to Resolve False Claims Act Lawsuit for Overbilling in Federal ContractsRead the Press Release
Airbus U.S. Space & Defense Inc., formerly known as Airbus Defense and Space Inc. (ADSI), has agreed to pay to the United States $1,043,475 to resolve allegations that it violated the False Claims Act by billing impermissible fees in contracts with a number of federal agencies.
“Government contractors have a responsibility to bill the government both accurately and transparently,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “Companies that knowingly inflate their costs or otherwise improperly bill the government will be held accountable.”
“This settlement underscores the important role that whistleblowers continue to serve in protecting critical taxpayer resources,” said Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia. “We encourage individuals who uncover suspected misconduct regarding federal contracts to come forward and report their observations.”
“Government contractors who deliberately inflate profits at the expense of our military and taxpayer will be held accountable,” said Special Agent in Charge Christopher Dillard of the Mid-Atlantic Field Office for the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS). “This civil settlement reflects DCIS’ commitment to work with our law enforcement partners to tenaciously investigate those alleged to have overcharged the Department of Defense.”
The settlement resolves allegations that from January 2016 through January 2017, ADSI submitted proposals for contracts that included an unapproved cost rate to which ADSI was not entitled. ADSI referred to this as the “Orlando Factor.” The government further alleged that on certain contracts, during 2013 through 2020, ADSI charged federal government agencies an additional fee from its affiliates on top of ADSI’s own fee for parts ADSI acquired from its affiliates, but did not accurately disclose this affiliate fee to the government. Finally, the government alleged that ADSI charged a third-party contractor an excessive monthly storage fee to store a radar system purchased to support a contract with the U.S. Navy. The contractor passed along the full storage fees charged by ADSI to the U.S. Navy. However, ADSI did not disclose that they paid only a portion of those storage fees to store the radar system.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by a former ADSI employee. The False Claims Act permits private parties to sue for false claims on behalf of the United States and to share in any recovery. The qui tam case is captioned U.S. ex rel. Kmec v. Airbus Defense and Space, Inc., et al., No. 1:19-cv-660 (E.D. Va.). The former ADSI employee will receive $157,220 of the False Claims Act settlement.
The settlement 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 Eastern District of Virginia, with investigative support from the DCIS and the U.S. Army Criminal Investigation Division.
The matter was handled by Trial Attorney Richard Hagner of the Civil Division and Assistant U.S. Attorney Krista Anderson of the Eastern District of Virginia.
Related court documents and information from the civil lawsuit can be accessed on PACER by searching for Case No. 1:19-cv-660 (E.D. Va.).
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Government Contractor Agrees to Pay More Than $1 Million to Resolve False Claims Act Lawsuit Alleging Overbilling in U.S. Defense ContractsRead the Press Release
ALEXANDRIA, Va. – A U.S. Government contractor has agreed to settle allegations that the company improperly billed fees on U.S. defense contracts involving a number of federal agencies.
Airbus U.S. Space & Defense, Inc., formerly known as Airbus Defense and Space, Inc. (ADSI), with offices in Arlington, Virginia, has agreed to pay to the United States $1,043,475 to resolve allegations that it violated the False Claims Act by billing impermissible fees in contracts involving a number of federal agencies.
“This settlement underscores the important role that whistleblowers continue to serve in protecting critical taxpayer resources,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “We encourage individuals who uncover suspected misconduct regarding federal contracts to come forward and report their observations.”
The settlement resolves allegations that, from January 2016 through January 2017, ADSI submitted proposals for contracts that included an unapproved cost rate to which ADSI was not entitled. ADSI referred to this cost rate as the “Orlando Factor.” The government further alleged that on certain contracts, during 2013 through 2020, ADSI charged federal government agencies an additional fee from its affiliates on top of ADSI’s own fee for parts ADSI acquired from its affiliates, but did not accurately disclose this affiliate fee to the government. The government also alleged that ADSI charged a third-party contractor an excessive monthly storage fee to store a radar system purchased to support a contract with the U.S. Navy. The government alleged that ADSI passed along the full storage fees charged by ADSI to the U.S. Navy but did not disclose that it paid only a portion of those storage fees to store the radar system.
“Government contractors have a responsibility to bill the government both accurately and transparently,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “Companies that knowingly inflate their costs or otherwise improperly bill the government will be held accountable.”
“Government contractors who deliberately inflate profits at the expense of our military and taxpayer will be held accountable,” said Christopher Dillard, Special Agent in Charge of the Mid-Atlantic Field Office for the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS). “This civil settlement reflects DCIS’ commitment to work with our law enforcement partners to tenaciously investigate those alleged to have overcharged the Department of Defense.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act, by a former Airbus employee. The False Claims Act permits private parties to sue for false claims on behalf of the United States and to share in any recovery. The qui tam case is captioned U.S. ex rel. Kmec v. Airbus Defense and Space, Inc., et al.). The former Airbus employee will receive $157,220 of the False Claims Act settlement.
The settlement was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia and the Department of Justice’s Civil Division’s Commercial Litigation Branch Fraud Section, with investigative support from the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, and the U.S. Army Criminal Investigation Division.
The matter was handled by Assistant U.S. Attorney Krista Anderson of the Eastern District of Virginia and Trial Attorney Richard Hagner of the Department of Justice’s Civil Division.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information from the civil lawsuit can be accessed on PACER by searching for Case No. 1:19-cv-660 (E.D. Va.).
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Fresno Man Sentenced to 6.5 Years in Prison for Dealing Fentanyl Pills and Illegally Possessing FirearmRead the Press Release
FRESNO, Calif. — Morgan Wency Ventura Sanchez, 24, of Fresno, was sentenced today to six years and six months in prison for possessing hundreds of fentanyl pills with intent to distribute them and illegally possessing a firearm in furtherance of the offense, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, in August 2020 federal and local law enforcement officers were investigating Ventura Sanchez for dealing fentanyl pills. On Aug. 24, 2020, officers searched Ventura Sanchez’s car, person, and residence and found hundreds of fentanyl pills, as well as other controlled substances, including heroin, cocaine, and marijuana. Officers also found a loaded firearm close to Ventura Sanchez’s drug stash. Ventura Sanchez was arrested and pleaded guilty to federal drug and gun charges.
This case was the product of an investigation by the Fentanyl Overdose Resolution Team, a multi‑agency team composed of Homeland Security Investigations, the Drug Enforcement Administration, and the Fresno Police Department. Assistant U.S. Attorney Justin J. Gilio prosecuted the case.
This case is part of Operation Synthetic Opioid Surge (S.O.S.) a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.
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.
Four Former Employees of Utility Company Plead Guilty in Bribery and Kickback SchemeRead the Press Release
Earlier today, in federal court in Brooklyn, Patrick McCrann and Richard Zavada, two former employees of a New York-based utility company (the “Company”), pleaded guilty to accepting bribes and kickbacks from the owners of a Long Island-based contractor (the “Contractor”) in exchange for steering lucrative contracts to the Contractor. Last week, Ricardo Garcia and Jevan Seepaul, two other former employees of the Company, also pleaded guilty to accepting bribes and kickbacks from the Contractor. Today’s proceedings took place before United States District Judge Carol Bagley Amon.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty pleas.
“The defendants have admitted to accepting thousands of dollars in bribes and kickbacks for their own enrichment and to subverting the no-bid process for awarding contracts,” stated Acting U.S. Attorney Kasulis. “The Office will remain vigilant in prosecuting criminals who seek to enrich themselves at the expense of taxpayers and consumers.”
As alleged in the criminal information and other court filings, the defendants were managers employed in the facilities department of the Company who steered contracts to certain Long Island-based contractors, including the Contractor, in exchange for hundreds of thousands of dollars in bribes and kickbacks. The Contractor secured more than $50 million in facility maintenance contracts from the Company during the time that the Contractor was paying bribes to the defendants. As managers, the defendants had the authority to approve “no-bid” contracts valued at less than $50,000. The Contractor understood that if it did not pay bribes, the defendants would award the Company’s work to the Contractor’s competitors. In exchange for the bribe payments, the defendants also took various steps to assist the Contractor in obtaining contracts from the Company for which there was a bidding process, including providing it with non-public bidding information, circumventing the Company’s competitive bidding process and offering favorable reviews of the Contractor’s work. The Contractor paid bribes to ensure that the defendants did not slow or stop disbursement of project funds to the Contractor, provide negative performance reviews regarding the Contractor’s work, or otherwise claim that the Contractor’s work did not meet contractual specifications.
The illicit payments to the defendants included cash, the purchase of a recreational vehicle, home improvements, landscaping and an overseas vacation. As part of the investigation, agents recovered approximately $300,000 in cash from a safe deposit box held by Zavada.
When sentenced, each defendant faces a maximum sentence of five years in prison, a maximum fine of $500,000, mandatory restitution and forfeiture.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Turner Buford and Artie McConnell are in charge of the prosecution.
The Defendants Who Pleaded Guilty Today:
PATRICK MCCRANN
Age: 57
Selden, New YorkE.D.N.Y. Docket No. 21-CR-467 (CBA)
RICHARD ZAVADA
Age: 65
Hicksville, New YorkE.D.N.Y. Docket No. 21-CR-468 (CBA)
The Defendants Who Previously Pleaded Guilty:
RICARDO GARCIA
Age: 48
Stroudsburg, PennsylvaniaE.D.N.Y. Docket No. 21-CR-460 (CBA)
JEEVAN SEEPAULAge: 36
Rockville Centre, New YorkE.D.N.Y. Docket No. 21-CR-469 (CBA)
Fort Myers Man Sentenced to More Than 22 Years for Firearms Offense and for Receiving Illegal Drugs Through the MailRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced Bradleigh Wayne Carter (32, Fort Myers) to 22 years and 6 months in federal prison for attempted possession with the intent to distribute 50 grams of methamphetamine and for possession of a firearm in furtherance of a drug trafficking crime. The court also ordered Carter to forfeit firearms and ammunition that were related to the offense.
Carter had pleaded guilty on October 6, 2020.
According to court documents, Carter agreed to have a United States Postal Service (USPS) Priority Mail parcel shipped to his residence in Fort Myers, knowing that the package contained approximately one pound of methamphetamine. During the execution of a search warrant at Carter’s residence, law enforcement located additional quantities of controlled substances, including methamphetamine, fentanyl and cocaine. Agents also seized several firearms and ammunition that Carter, a convicted felon, knowingly possessed in furtherance of his drug trafficking activity.
This case was investigated by the United States Postal Inspection Service with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the Lee County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Jesus M. Casas.
Former Operations Supervisor at Social Security Administration Sentenced to over 5 Years for Wire Fraud and Identity TheftRead the Press Release
NEW BERN, N.C. – A Saint Pauls, North Carolina woman, Stephanie Chavis, was sentenced today to 65 months in prison and three years of supervised release for wire fraud and aggravated identity theft. Chavis was also ordered to pay $760,966 in restitution to the Social Security Administration. On April 16, 2019, Chavis pled guilty to the charges.
According to court documents and other information presented in court, Chavis was an Operations Supervisor at the Fayetteville offices of the Social Security Administration (SSA). SSA administers monetary aid to the public through federally funded programs, including the Supplemental Security Income program (SSI), which authorizes monthly payments to qualifying individuals who are 65 years or older, blind, or disabled, and who meet certain income and resource criteria.
In her capacity as an Operations Supervisor, Chavis had access to SSA beneficiary accounts and associated personal identifying information (PII). Between approximately August 2010 and April 2018, Chavis caused over $760,000 in SSI benefits to be electronically deposited into nine different bank accounts held in her name, and in the names of various family members, by making false and fraudulent representations to fellow SSA employees, including claims representatives and other supervisors. The investigation established that Chavis used her government-issued PIN number to query the accounts of approximately 62 program beneficiaries and used their PII to generate the fraudulent payment requests. The beneficiaries targeted by Chavis included incarcerated individuals who were not entitled to payments, individuals who had been suspended or terminated from the SSI program, and beneficiaries who were legitimately owed SSI funds.
To circumvent SSA policy requirements, Chavis provided the beneficiary PII and account information for deposit purposes to unsuspecting claims representatives and asked them to create approximately 100 fraudulent payment requests. After the requests were created, Chavis either approved them herself or asked other SSA employees to process the approvals. Thereafter, the stolen funds were deposited into the bank accounts under Chavis’s control.
“Ms. Chavis misused her official position and authority in the Social Security Administration to steal over $760,000 in taxpayer funds. I am gratified that a review by the SSA OIG audit office flagged this activity to OIG investigators as potential fraud,” said Gail S. Ennis, Inspector General for the Social Security Administration. “We will continue to identify and aggressively pursue any instances of employee fraud and hold wrongdoers to account. These efforts are critical to maintaining the public’s trust in Social Security. I want to thank the U.S. Attorney’s Office for its support of our investigation and efforts to bring it to a successful resolution.”
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 case was investigated by Social Security Administration, Office of Inspector General, Atlanta Field Division, under the supervision of Special Agent in Charge Rodregas W. Owens. Former Special Assistant U.S. Attorney Tamika Moses and Assistant U.S. Attorney Adam F. Hulbig prosecuted the case for the government.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:18-cr-00407-FL-1.
Former Director of Operations at Stockton Biofuel Company Sentenced to 18 Months in Prison for Illegally Dumping Industrial WastewaterRead the Press Release
SACRAMENTO, Calif. — Christopher Young, 45, of El Dorado Hills, was sentenced today by U.S. District Judge Kimberly J. Mueller to 18 months in prison and a $50,000 fine for tampering with monitoring equipment, unlawful discharge of industrial wastewater, and conspiracy, Acting U.S. Attorney Phillip A. Talbert announced.
Young was Director of Operations for Community Fuels from 2010 to 2016. Community Fuels is registered in San Joaquin County by American Biodiesel Inc. and manufactured biodiesel fuel on property leased from the Port of Stockton
According to court documents, Young participated in a scheme to discharge hundreds of thousands of gallons of polluted wastewater by various unlawful means, including the discharge of wastewater directly into Stockton’s sewer system after tampering with pH sensors and discharge flow monitors to hide evidence of the dumping. Young also directed others to cause a discharge on various dates using improvised hidden hoses and pipes that ultimately connected to the city’s sewer system.
The City of Stockton issued wastewater permits to American Biodiesel that allowed the limited discharge of wastewater into the sewer system under specific standards—a limitation on the total volume discharged per month, an allowable range of pH readings, and a restriction on the concentration of methanol. American Biodiesel had previously represented to the City of Stockton that unpermitted wastewater would be transported offsite to an appropriate facility for treatment. Young’s actions circumvented these restrictions through equipment tampering and unauthorized dumping.
In one instance in 2016, the City of Stockton conducted a surprise inspection and found plant personnel engaged in a procedure that misreported the pH level data and the flow rate of wastewater being discharged into the Stockton sewer system. The City issued an immediate cease and desist order. Young then met with the city inspectors and told them that the discharge was an accident and employees had been disciplined for the act. But later, Young sent an email instructing an employee to restart the wastewater dumping into the sewer because inspectors were unlikely to appear after hours.
“Violating the environmental laws of the United States can carry criminal consequences, potentially including time in prison,” said Acting U.S. Attorney Talbert. “Protecting the environment for our community and future generations is critical, and those who violate our environmental laws will be held accountable.”
“Our nation’s environmental laws are designed to protect our communities, natural resources, and critical infrastructure from hazardous pollutants,” said Special Agent in Charge Scot Adair of EPA’s criminal investigation program in California. “The sentencing outcomes in this case demonstrate that companies and individuals that intentionally violate those laws will be held responsible for their crimes.”
On July 8, 2019, Judge Mueller sentenced American Biodiesel for violations of the Clean Water Act when it allowed the discharge of industrial wastewater into the City of Stockton sewer system. American Biodiesel admitted to tampering with monitoring devices and methods designed to detect such violations, and admitted that employees tampered with pH recordings and flow meters for the purpose of underreporting acid and pollutant levels and volumes that would have exceeded the figures allowed under the city’s regulations.
This case was the product of an investigation by the EPA’s Criminal Investigation Division, the San Joaquin County District Attorney’s Office, the City of Stockton Municipal Utilities Department, the San Joaquin County Environmental Health Department, the Port of Stockton, and the California Department of Toxic Substances Control. Assistant U.S. Attorneys Philip A. Scarborough and Paul Hemesath prosecuted the case.
Former Boston Police Officer Charged in Overtime Fraud SchemeRead the Press Release
BOSTON – A former Boston Police officer has been charged and has agreed to plead guilty in connection with an ongoing investigation of overtime fraud at the Boston Police Department’s (BPD) evidence warehouse.
Thomas Nee, 64, of Quincy, agreed to plead guilty to one count of conspiracy to commit theft concerning programs receiving federal funds and one count of embezzlement from an agency receiving federal funds. A plea hearing has not yet been scheduled.
According to charging documents, from at least January 2015 through February 2019, Nee submitted false and fraudulent overtime slips for overtime hours that he did not work at the evidence warehouse. The “purge” overtime, was a 4 – 8 p.m. weekday shift intended to dispose of old, unneeded evidence. “Kiosk” overtime involved driving to each police district in Boston one Saturday a month to collect old prescription drugs to be burned.
For the “purge” shift, Nee claimed to have worked from 4 – 8 p.m., but he and, allegedly, other members of the unit, routinely left at 6 p.m., or earlier. For the “kiosk” shift, Nee submitted overtime slips claiming to have worked eight-and-one-half hours, when in fact he and, allegedly, other members of the unit, only worked three-to-four hours of those shifts. As a result, between January 2015 and August 2017, Nee personally collected approximately $16,642 for overtime hours he did not work.
Nee is the 15th Boston Police officer to have been charged in connection with committing overtime fraud at the Boston Police Department’s evidence warehouse. Nine of the charged officers have pleaded guilty.
From 2015 through 2019, BPD received annual benefits from the U.S. Department of Transportation and U.S. Department of Justice in excess of $10,000, which were funded pursuant to numerous federal grants.
The charge of embezzlement from an agency receiving federal funds provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss. The charge of conspiracy provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Russell W. Cunningham, Special Agent in Charge of the Department of Justice Office of the Inspector General, Washington Field Office; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistance was provided by the Boston Police Department. Assistant U.S. Attorney Mark Grady of Mendell’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Florida Man Sentenced to Federal Prison for Filing Hundreds of False Tax ReturnsRead the Press Release
PORTLAND, Ore.—A Homestead, Florida man was sentenced to federal prison today for perpetrating a multi-year fraud scheme wherein he filed 745 false tax returns in 19 different states.
Damian O. Barrett, 40, was sentenced to 54 months in federal prison and three years’ supervised release.
“With tax filing season right around the corner, it is important that all Americans who choose to hire a tax preparation professional take the necessary precautions to ensure they are legitimate and have their best interests in mind, said Scott Erik Asphaug, Acting U.S. Attorney for the District of Oregon. “Misusing personally identifiable information to submit fraudulent tax returns in the names of unknowing clients is a serious crime and be treated as such by our office. We applaud the IRS’s effort to hold Mr. Barrett accountable for his crimes.”
“Mr. Barrett used his specialized knowledge as a tax preparer to obtain false refunds at the cost of honest taxpayers all over the United States. Today’s sentence is a victory for those of us who have been victims of a sophisticated tax refund scheme,” said IRS Criminal Investigation (IRS:CI) Special Agent in Charge Bret Kressin. “IRS:CI continues to prioritize investigating individuals who diminish the integrity of our tax systems to hold them accountable for their fraud.”
According to court documents, Barrett owned two tax preparation companies, Max Tax Experts, LLC and Winngate Tax Services, LLC. Barrett used Max Tax Experts to service and submit tax returns on behalf of legitimate clients. He used Winngate Tax Services to submit false and fraudulent income tax returns. From approximately January 2015 through December 2018, Barrett filed 745 false tax returns to 19 different state taxing authorities. The Oregon Department of Revenue alone received 348 tax returns requesting more than $322,000 in fraudulent refunds. The agency paid out more than $130,000 in fraudulent refunds to Barrett.
To further his scheme, Barrett used the names, social security numbers, and employer identification numbers of various individuals, some of whom were his clients, to submit fraudulent returns. Additionally, he set up bank accounts in the names of some of his victims to receive fraudulent refunds. In total, Barrett sought nearly $900,000 and received more than $234,000 in fraudulent refunds.
In addition to his fraud scheme, in 2016, Barrett intentionally excluded more than $21,000 in income from his personal income tax return, resulting in a tax loss of $5,506. In 2017, Barrett failed to file a personal income tax return, creating an additional tax loss of $68,918.
On August 5, 2020, a federal grand jury in Portland returned a six-count indictment charging Barrett with mail fraud and money laundering. Later, on June 17, 2021, he was charged by superseding criminal information with mail fraud, filing a false tax return, and aggravated identity theft. On July 19, 2021, Barrett pleaded guilty to all three charges in the superseding information.
During sentencing, U.S. District Court Judge Michael H. Simon ordered Barrett to pay more than $234,000 in restitution to 11 state departments of revenue, including the taxing authorities in Arizona, Connecticut, Iowa, Louisiana, Michigan, Missouri, New Jersey, New Mexico, Oklahoma, Oregon, and South Carolina, and more than $74,000 to the IRS.
Acting U.S. Attorney Asphaug and Special Agent in Charge Kressin made the announcement.
This case was investigated by IRS:CI with assistance from the U.S. Postal Inspection Service. Assistant U.S. Attorneys Katherine A. Rykken and Seth D. Uram prosecuted the case.
Felon Who Possessed Multiple Firearms Sentenced to over Nine Years in PrisonRead the Press Release
A man who possessed five firearms as a felon was sentenced today to more than nine years in federal prison.
Demond Rollins, age 21, from Waterloo, Iowa, received the prison term after an April 19, 2021 guilty plea to being a felon in possession of a firearm.
Evidence in the case showed Rollins was in possession of a firearm as a passenger in a vehicle. When police initiated a traffic stop, the vehicle fled at a high rate of speed through Waterloo. Rollins tossed a firearm out of the car window and then ran from police when the vehicle stopped. Rollins has two prior state court convictions for being a felon in possession of firearms.
Rollins was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Rollins was sentenced to 110 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Rollins is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case is being prosecuted by Assistant United States Attorneys Lisa C. Williams and Jacob Schunk and was investigated by a Federal Task Force composed of the Waterloo Police Department, Federal Bureau of Investigation, and Bureau of Alcohol Tobacco and Firearms assisted by the Black Hawk County Sheriff’s Office and Cedar Falls Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-2009.
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