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Thursday 19 August 2021
Wheeling man sentenced for drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Lewis Smith, of Wheeling, West Virginia, was sentenced today to 51 months of incarceration for selling cocaine near a local school, Acting U.S. Attorney Randolph J. Bernard announced.
Smith, also known as “Duck,” 51, pleaded guilty in April 2021 to one count of “Distribution of Cocaine Base within 1000 feet of a Protected Location.” Smith admitted to selling cocaine base or “crack” near St. Michael Parish School in January 2018 in Ohio County.
Assistant U.S. Attorney Clayton J. Reid prosecuted the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.
West Hazleton Man Sentenced to 10 Years’ Imprisonment for Crack Cocaine Trafficking and Firearms OffensesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on August 19, 2021, Randell Bruton-Scott, age 34, of West Hazleton, Pennsylvania, was sentenced to 120 months’ imprisonment and four years of supervised release, by United States District Judge Robert D. Mariani, for crack cocaine trafficking and firearms offenses.
According to Acting United States Attorney Bruce D. Brandler, Bruton-Scott previously pleaded guilty to distributing and possessing with intent to distribute between 28 and 112 grams of crack cocaine in May and June 2019. Bruton-Scott also pleaded guilty to being a felon in possession of a firearm and ammunition that were recovered during a search warrant executed at his West Hazleton residence on June 20, 2019. Due to his significant criminal history, Bruton-Scott was deemed a career offender subject to enhanced potential penalties.
The matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosive, the Luzerne County Drug Task Force, and the West Hazleton Police Department. Assistant United States Attorney Phillip J. Caraballo is prosecuting the case.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.”
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Upshur County Man Sentenced for Identity Theft in Connection with CARES Act Economic Impact PaymentsRead the Press Release
TYLER, Texas – A Gilmer man has been sentenced to prison for federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Dalton Brewer, 25, pleaded guilty on March 4, 2021, to conspiracy to unlawfully transfer, possess, and use a means of identification and was sentenced to 37 months in federal prison today by U.S. District Judge Jeremy D. Kernodle. Brewer was also ordered to pay restitution in the amount of $11,230.77.
“Not only was Mr. Brewer stealing taxpayer money – money intended to assist those suffering due to the pandemic – but he also stole the identities of innocent persons to effectuate his fraud,” said Acting U.S. Attorney Nicholas J. Ganjei. “The CARES Act exists to provide economic stability and public confidence, both of which are undermined by criminal acts of program fraud. Together with its law enforcement partners, EDTX aims to be a vigilant guardian of the public fisc.”
“Understanding the impact financial crimes have on individuals drives the U.S. Postal Inspection Service to work diligently to hold perpetrators accountable,” said Thomas Noyes, Inspector in Charge of the Fort Worth Division. “It’s unfortunate that while communities are recovering from the impact of the pandemic, suspects exploit the situation for their personal enrichment. The message is clear however, that if you engage in these crimes, Postal Inspectors will investigate and hold those responsible. We thank our federal law enforcement partners and the U.S. Attorney’s Office in the Eastern District of Texas for their efforts.”
“The Treasury Inspector General for Tax Administration aggressively pursues those who endeavor to defraud programs afforded to the American people under the CARES Act,” said J. Russell George, the Treasury Inspector General for Tax Administration. “We appreciate the efforts of the Department of Justice and our law enforcement partners in this effort.”
“Economic Impact Payments are intended to assist those in most need who have been affected by the COVID-19 pandemic. Mr. Brewer and Mrs. Fenton used our tax system to take advantage of innocent people and steal these critical relief funds. IRS Criminal Investigation will continue to work with the US Attorney’s Office and other law enforcement partners to aggressively prosecute those who use this pandemic to commit fraud,” said Special Agent in Charge Christopher J. Altemus Jr. of the Dallas Field Office.
According to information presented in court, from at least November 2019 through June 2020, Brewer and Emilee Fenton conspired to possess and use the means of identification of other persons, including names, Social Security numbers, and dates of birth, in connection with the theft of government money, aggravated identity theft, wire fraud, theft of mail, and fraudulent use or possession of identifying information. Fenton was also charged with theft of government money and aggravated identity theft for her role in obtaining two EIPs using the means of identification of other persons. Fenton pleaded guilty to the same charge on March 23, 2021 and was sentenced to 10 months in federal prison on June 29, 2021.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. The CARES Act authorized over $2 trillion in relief programs, including approximately $560 billion for benefits to individuals. An estimated $300 billion of that total was allocated for EIPs. Brewer and Fenton were indicted by a federal grand jury on August 19, 2020.
This case was investigated by the U.S. Postal Inspection Service, Treasury Inspector General for Tax Administration, the Internal Revenue Service-Criminal Investigations, and the Upshur County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.
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United States Recovers over $1.4 Million from Four Additional Responsible Parties for the Release of Mercury in the Village of Rye BrookRead the Press Release
Audrey Strauss, United States Attorney for the Southern District of New York, and Walter Mugdan, Acting Regional Administrator of the U.S. Environmental Protection Agency (“EPA”), announced today that the United States has filed a civil lawsuit against E.I. DUPONT DE NEMOURS AND COMPANY (“DuPont”), D & D SALVAGE CORPORATION (“D & D”), OXY USA INC. (“Oxy”), and W.A. BAUM COMPANY, INC. (“W.A. Baum”) (collectively, the “Defendants”), and has simultaneously filed a consent decree settling the lawsuit. In the complaint, brought pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. §§ 9601-9675 (“CERCLA”) – commonly known as the Superfund statute – the United States alleged that the Defendants arranged for the disposal or treatment of mercury by Port Refinery, Inc. (“Port Refinery”), a mercury refining business in the Village of Rye Brook, New York, which led to releases of mercury into the environment. The consent decree provides for a combined payment of $1,412,255 by the Defendants for costs incurred by EPA in conducting clean-up activities at the site.
U.S. Attorney Audrey Strauss said: “DuPont, D & D, Oxy, and W.A. Baum contributed to contamination in a residential community by arranging for the treatment or disposal of over 7,000 pounds of toxic mercury, and now each is paying a share of the costs that EPA had to incur to clean up this site. This Office will continue to hold responsible parties accountable for their share of the costs at the site.”
EPA Acting Regional Administrator Walter Mugdan said: “EPA is recovering more than $1.4 million that the Agency spent to clean up mercury pollution released in the Village of Rye Brook, and that is good news for taxpayers as we are holding the polluter responsible for the cost. The funds can be put back into the Superfund to assist with cleanup of other sites. This case shows that EPA can take immediate action to protect people while still holding polluters responsible by recovering some of the money down the road. We don’t have to choose between protecting people and taking appropriate legal action – they go hand-in-hand.”
As alleged in the complaint filed yesterday in White Plains federal District Court, each of the Defendants arranged for Port Refinery’s treatment or disposal of used, surplus, or scrap mercury and mercury-containing materials at the Site. Port Refinery’s treatment and processing of mercury sent by the Defendants and other parties led to extensive releases of mercury into the environment, necessitating two separate clean-up actions by EPA. In connection with the second clean-up, EPA incurred costs at the Site for investigative and removal activities, including, among other things, excavating and disposing of more than 9,300 tons of mercury-contaminated soil from the site.
In the consent decree filed yesterday, the Defendants admit and accept responsibility for the following:
- EPA has determined that from the 1970s through the early 1990s, Port Refinery engaged in, among other things, the business of mercury reclaiming, refining, and processing.
- Port Refinery operated in the Village of Rye Brook out of a two-story garage bordered by private residences on its south, east, and west sides.
- EPA has determined that Port Refinery took virtually no environmental precautions or safety measures during its mercury refinement process.
- EPA has determined that Port Refinery released a significant amount of mercury into the environment, contaminating the Site.
- EPA has determined that mercury from the Defendants’ mercury-containing products was comingled at the Site and contributed to the mercury released into the environment.
Moreover, in the consent decree each Defendant admits and accepts responsibility for directly or indirectly delivering mercury to Port Refinery as follows:
- DuPont delivered 3,291 pounds of mercury, which included virgin, unused, scrap, used, and contaminated mercury, to Port Refinery during Port Refinery’s period of operations.
- D & D delivered 2,150 pounds of scrap mercury to Port Refinery during Port Refinery’s period of operations.
- Oxy sold 190 pounds of surplus mercury and mercury-containing materials to a third-party scrap dealer during Port Refinery’s period of operations, and EPA has determined that those surplus mercury and mercury-containing materials came to be located at the Site.
- W.A. Baum delivered 1,425 pounds of “dirty” mercury to Port Refinery during Port Refinery’s period of operations.
Pursuant to the consent decree, the Defendants will pay a total of $1,412,255 in costs incurred by EPA, consisting of $658,639 to be paid by DuPont, $430,352 to be paid by D & D, $38,031 to be paid by Oxy, and $285,233 to be paid by W.A. Baum.
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This lawsuit is the United States’ sixth lawsuit against responsible parties to recover clean-up costs for the second clean-up at the Site. With this settlement, the United States has recovered a total of $2,382,137 from responsible parties.
The consent decree will be lodged with the District Court for a period of at least 30 days before it is submitted for the Court’s approval, to provide public notice and to afford members of the public the opportunity to comment on the consent decree.
This case is being handled by the Office’s Environmental Protection Unit. Assistant U.S. Attorney Anthony J. Sun is in charge of the case.
Two Hudson County Men Charged for Roles in Jersey City ShootoutRead the Press Release
NEWARK, N.J. – Two Jersey City, New Jersey, men who were involved in a shootout made their initial court appearances today on charges that they possessed ammunition as previously convicted felons, Acting U.S. Attorney Rachael A. Honig announced.
Shamir Blunt, 35, and Mark Franklin, 29, are charged by criminal complaint with one count each of being felons in possession of ammunition. Blunt and Franklin made their initial appearance today before U.S. Magistrate Judge Michael A. Hammer in Newark federal court and were detained.
According to documents filed in this case:
In the early morning hours of May 23, 2021, Blunt was standing on the sidewalk in front of a bodega in the Grove Street area of Jersey City. Franklin parked across the street. Franklin got out of his car, and the two men started arguing. Blunt walked to the bodega and opened the door. Franklin followed him.
As Blunt entered the bodega, Franklin punched him in the face several times. The two struggled until Franklin pulled a gun out and fired a shot. Police later recovered a 9-millimeter shell casing from Franklin’s gun inside the bodega. Franklin then left and put the gun back inside his hoodie.
Emerging from the bodega, Blunt ran at Franklin and shot at him twice from close range. Franklin fell to the ground, and then he pulled out his own firearm and returned fire. The two men continued to exchange gun shots from across the street.
Franklin and Blunt shot at each other over 15 times, and both men were hit. They eventually got in their cars, sped away, and went to Jersey City Medical Center where police later found each of their cars parked outside. Police also collected their clothing from the hospital, which matched the clothing they were wearing during the firefight.
Police also later found at least nine 9-millimeter shell casings from Franklin’s gun and at least four 9-millimeter shell casings from Blunt’s gun. They also found several bullets lodged in parked cars and in windows of nearby businesses.
At the time, both Blunt and Franklin had at least one prior felony conviction.
The felon in possession of ammunition charges carry a maximum potential penalty of 10 years in prison and a $250,000 fine.
Acting U.S. Attorney Honig credited task force officers of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Jeffrey L. Matthews, with the investigation. She also thanked the Jersey City Police Department for their assistance.
The government is represented by Acting Chief of the Violent Crimes Unit Jason S. Gould of the U.S. Attorney’s Office in Newark.
The charge and allegations contained in the complaint are merely accusations and the defendants are presumed innocent unless and until proven guilty.
Tulsa Man Pleads Guilty to Sending Emails to Newson6 Threatening President BidenRead the Press Release
A Tulsa man pleaded guilty today in federal court for sending threatening emails to KOTV Channel 6 directed at President Joseph Biden, unnamed members of the Congress, and their families, announced Acting U.S. Attorney Clint Johnson.
John Jacobs Ahrens, 58, pleaded guilty to one count of threat against the President of the United States and two counts of interstate communication with a threat to injure. He will be sentenced on Dec. 22, 2021.
“This office and our federal law enforcement partners take seriously any online threats made against the President and members of Congress,” said Acting U.S. Attorney Clint Johnson. “I appreciate the staff at Newson6 for reporting John Ahrens’ threatening emails. It is their action along with the work of Assistant U.S. Attorney Joel-lyn McCormick, the U.S. Secret Service, FBI, and OSBI that ensured Mr. Ahrens was held accountable today in federal court.”
According to court documents, an executive producer from the station contacted the FBI’s National Threat Operations Center to report the threatening emails dated between May and June 2021.
In his messages, Ahrens demanded money, and if it wasn’t sent, he wrote that he would kill the President, members of Congress, and their families.
On May 10, 2021, Ahrens sent a message stating, “Please go to my Facebook page and read what I sent to the men of the United States Congress. They have less than 48 hours to hand over my money or their children will start dying all over the country. I’m going to kill their children using the same law as the Government used to force our families on to the Trail of Tears.”
In a June 17 message, he wrote “You have until Monday morning 8:00 am sharp to hand a check over to the State of Oklahoma, the Muscogee Nation and my family in accordance with a signed agreement as set forth in the Treaty of 1866.”
Other messages included “America is going to get to see a sitting President get his head blown off right in front of them” and “…your families will start dying. After that is over, I’m going to come back here one more time and tell you to hand over my money.”
Ahrens was arrested at his Tulsa residence on June 18, 2021, by agents of the FBI and Oklahoma State Bureau of Investigation and task for officers with the FBI’s Joint Terrorism Task Force.
The U.S. Secret Service, FBI, and Oklahoma State Bureau of Investigation (OSBI) are the investigative agencies. Assistant U.S. Attorney Joel-lyn A. McCormick is prosecuting the case.
Tooele Veterinarian Ordered to Pay $78,455 and Limit Prescribing for Failing to Properly Track and Control OpioidsRead the Press Release
SALT LAKE CITY – Dr. Joe Roundy, a licensed veterinarian and the owner of the Tooele Veterinary Clinic in Tooele, Utah, has been ordered to pay the United States $78,455 and restrict his prescribing of opioids and other controlled substances for violations of multiple provisions of the Controlled Substances Act (“CSA”).
According to the allegations made by the United States, Dr. Roundy failed to properly inventory, track, and maintain control over controlled substances, including opioids such as oxycodone and morphine over a period of several years of practicing as a veterinarian and operating an active animal clinic. By not properly inventorying, tracking, maintaining control over, and storing the controlled substances, he violated the Controlled Substances Act. These violations were discovered by DEA investigators during an on-site inspection of Dr. Roundy’s veterinary clinic, which included an audit of his drug control practices. DEA investigators found CSA violations with respect to all eighteen of the eighteen controlled substances audited. Dr. Roundy could not locate or account for a significant number of the controlled substances the DEA audited.
“When those trusted to prescribe dangerous opioids and other medications like Dr. Roundy don’t track and control their opioids carefully, they create the potential to contribute to the menace of opioid abuse,” said Acting U.S. Attorney Andrea Martinez. “The court’s order has cost Dr. Roundy a significant monetary penalty and has severely restricted his ability to prescribe and administer powerful opioids and other medications.”
“The Drug Enforcement Administration is committed to ensuring that those entrusted with the ability to prescribe controlled substances, regardless of their profession, do so in a safe, responsible manner,” said Utah DEA Assistant Special Agent in Charge Michael J. Tinkler. “This investigation highlights the critical role that DEA Diversion Investigators play in safeguarding the public from the dangers associated with the potential misuse of prescription drugs”.
This matter was investigated by the U.S. Drug Enforcement Administration, Diversion Control Division, in conjunction with the United States Attorney’s Office.
The statements in this release are only allegations. In entering into a civil settlement and agreeing to the court’s entering an order against him, Dr. Roundy did not admit to liability, and the order indicates that the parties entered into the settlement to avoid the uncertainty and expense of further litigation.
Assistant U.S. Attorney Joel Ferre handled this matter on behalf of the United States.
Third defendant sentenced in scheme to use drone to smuggle contraband into a Georgia state prisonRead the Press Release
AUGUSTA, GA: An Atlanta-area man is the third defendant sentenced in U.S. District Court after admitting to a scheme to use a drone to smuggle contraband into a Georgia state prison.
Cheik Hassane Toure, 24, of Marietta, Ga., was sentenced to 12 months in federal prison after pleading guilty to Serving or Attempting to Serve as an Airman Without an Airman’s Certificate, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. Toure had been in the custody of the U.S. Marshals Service since June 9 after a hearing in which it was determined he had violated the conditions of his bond. At sentencing, U.S. District Court Judge Dudley H. Bowen also ordered Toure to pay a $1,000 fine and to serve one year of supervised release after completion of his prison term. There is no parole in the federal system.
Toure’s co-defendants, brothers George Lo, 27, of Powder Springs, Ga., and Nicholas Lo, 25, of Dallas, Ga., are serving sentences of 12 months in federal prison after also pleading guilty in the scheme. The prosecutions in the case are believed to be among the first in the nation under federal law regulating non-passenger aircraft.
“The growing field of unmanned aircraft has bloomed enormous possibilities for legal commerce and recreation, but like all technological advances it also has provided a new tool for those who would attempt to smuggle contraband inside prison walls,” said Acting U.S. Attorney Estes. “Thanks to the vigilance of our law enforcement partners, this particular scheme was grounded before delivering its payload.”
As described in court documents and testimony, George Lo was serving a state sentence for armed robbery at Telfair State Prison in Telfair County when he began conspiring with Nicholas Lo and Toure, and others, to own and operate a Storm Drone 4 kit-built unmanned aircraft without registration or licensing. The Lo brothers discussed using the drone to deliver contraband to Telfair State Prison, and Nicholas Lo and Toure practiced flying the aircraft. George Lo planned to pay the two to fly the aircraft to deliver the contraband, which he intended to sell to other inmates.
At 1:30 a.m., on Aug. 26, 2019, Telfair County Sheriff’s deputies observed an approaching vehicle turn off its lights about 100 yards from Telfair State Prison. During a search, Deputies encountered Nicholas Lo and Toure in a wooded area between the road and prison. The pair possessed a large duffle bag containing the drone, a controller, a video monitor and a headset. In addition, the bag contained 14 cell phones, at least 74 grams of tobacco, a digital scale and earbud headphones. Both men were taken into custody.
Federal law requires registration of unmanned aircraft weighing 0.55 pounds or more, and the Storm Drone 4’s weight was in excess of that requirement. Also, federal law requires the pilot of any unmanned aircraft to hold an airman’s certificate when operating the unmanned aircraft for compensation or hire.
“Federal laws and regulations related to owning and operating drones serve to ensure the safety of the public and our nation’s airspace. Violating those laws while attempting to smuggle contraband into a state prison is a recipe for disaster,” said Todd Damiani, Special Agent-In-Charge, U.S. Department of Transportation Office of Inspector General, Southern Region. “This sentencing sends a strong message that, together with our law enforcement and prosecutorial partners, we are committed to keeping our skies safe and illicit activities at bay.”
“We are pleased to see that justice has been served on these individuals for their role in attempting to introduce dangerous contraband into our facilities,” said Georgia Department of Corrections Commissioner Timothy C. Ward. “This outcome should serve as a clear message that perpetrating criminal activity, even while behind prison walls, will not be tolerated.”
The case was investigated by the U.S. Department of Transportation Office of Inspector General, the Georgia Department of Corrections, and the Telfair County Sheriff’s Office, and prosecuted for the United States by Assistant U.S. Attorneys John P. Harper III and E. Greg Gilluly Jr.
Springfield Man Pleads Guilty to Cocaine Trafficking and Money Laundering ConspiraciesRead the Press Release
BOSTON – A Springfield man pleaded guilty yesterday in federal court in Springfield to conspiring to traffic cocaine and launder money.
Miguel Betancourt, 53, pleaded guilty to one count of conspiracy to distribute cocaine and one count of conspiracy to commit money laundering. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Dec. 8, 2021.
Betancourt was indicted in November 2017 as part of a 14-month wiretap investigation into a large-scale drug trafficking organization supplied by sources in Mexico and spanning at least four states.
At the plea hearing, Betancourt admitted that, in 2016, he knowingly purchased five kilograms of cocaine, which he intended to distribute to others. Betancourt then used his auto dealership, State Line Auto Sales in Enfield, Conn., to launder some of the drug proceeds by providing two vehicles registered in another individual’s name to the source from whom he purchased the cocaine as well as wiring $9,500 to a co-conspirator in Mexico.
The charge of conspiracy to distribute cocaine provides for a sentence of up to 20 years in prison, a minimum three years and up to a lifetime of supervised release and a fine of up to $1 million. The charge of conspiracy to commit money laundering provides for a sentence of up to 20 years in prison, up to five years of supervised release and a fine of up to $500,000. 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; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Special assistance was provided by the Drug Enforcement Administration’s Carlsbad (Calif.) Resident Office and the Westfield Police Department. Assistant U.S. Attorneys Neil L. Desroches and Steven H. Breslow of Mendell’s Springfield Branch Office prosecuted the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
Spring Hill Man Sentenced to Federal Prison for Theft of Government FundsRead the Press Release
Tampa, Florida – U.S. District Judge Charlene E. Honeywell has sentenced David Naylor (59, Spring Hill) to two years and three months in federal prison, followed by 3 years of supervised release, for theft of government funds. As part of his sentence, the court also ordered Naylor to pay $730,561.73 in restitution and, separately, entered a forfeiture money judgment against him in the amount of $549,426.23, the proceeds of the offense of conviction.
Naylor had pleaded guilty on September 22, 2020.
According to court documents, Naylor engaged in a scheme to defraud the Department of Veterans Affairs (VA). To deceive and steal from the VA, Naylor made false representations regarding his physical limitations in connection with his application for VA Disability Compensation. Based on these false representations, the VA found that Naylor was entitled to Disability Compensation and other related benefits. In total, Naylor received $549,426.23 in VA benefits to which he was not entitled. Naylor also received $181,135.50 in Social Security Disability Insurance benefits as a result of relevant conduct.
This case was investigated by the Department of Veterans Affairs, Office of the Inspector General and the Social Security Administration, Office of the Inspector General. It was prosecuted by Special Assistant United States Attorney Suzanne Huyler.
Spearfish Man Sentenced for Attempted Receipt of Child PornographyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Spearfish, South Dakota, man convicted of Attempted Receipt of Child Pornography was sentenced on August 17, 2021, by Judge Jeffrey L. Viken, U.S. District Court.
Stanley Lee Lumbardy, age 70, was sentenced to five years in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund, and a $5,000 special assessment to the Victims of Trafficking Fund. Lumbardy will also be required to register as a sex offender under the Sex Offender Registration and Notification Act.
Lumbardy was arrested and federally indicted as a result of an undercover sex trafficking operation conducted during the 2019 Sturgis Motorcycle Rally, targeting internet predators. Following multiple chats Lumbardy exchanged with a person he believed to be a 15-year-old girl, but who was in fact an undercover agent. Lumbardy requested photos from the 15-year-old undercover persona and negotiated a time and place he would meet the minor to engage in unlawful sex acts. When Lumbardy went to the pre-determined location to meet the minor, he was instead met by law enforcement agents and placed under arrest.
This case was investigated by Homeland Security Investigations, South Dakota Division of Criminal Investigation, Internet Crimes Against Children Task Force, Rapid City Police Department, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Lumbardy was immediately turned over to the custody of the U.S. Marshals Service.
Southern California Man Pleads Guilty After Attempting to Set Fire to Federal Courthouse During Portland ProtestRead the Press Release
PORTLAND, Ore.—A Southern California man pleaded guilty today for attempting to set fire to the Mark O. Hatfield U.S. Courthouse during a protest in Downtown Portland on July 13, 2020.
Kevin Benjamin Weier, 35, of Vista, California, waived indictment and pleaded guilty to one count of depredation of government property.
According to court documents, on July 13, 2020, Weier was present at a protest outside the Hatfield Federal Courthouse in Portland. During the protest, Weier placed a burning piece of wood against the building.
On August 10, 2021, Weier was charged by criminal information with one count of depredation of government property.
Depredation of government property is punishable by up to 10 years in prison, a $250,000 fine, and three years’ supervised release. Weier will be sentenced on November 15, 2021 before U.S. District Court Judge Karin J. Immergut.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the Federal Protective Service and prosecuted by the U.S. Attorney’s Office for the District of Oregon.
South Florida Liquor Store Owner Guilty of Tax EvasionRead the Press Release
Miami, Florida – A Lake Worth, Florida man who did not report his liquor store’s cash sales to the IRS pled guilty yesterday in federal district court in West Palm Beach to tax evasion.
Ajay Kumar, 60, was the sole officer and registered agent of Kruthi, Inc, a company registered in Florida, and doing business as “Tri County Discount Liquor.” Kumar attempted to evade taxes by keeping records of the liquor store’s income in two separate retail point-of-sale systems. Kumar reported the income from one of these systems to his accountant. Kumar recorded the cash sales on a separate stand-alone cash register and did not report this income. As a result, Kruthi’s return for tax year 2017 underreported the liquor store’s gross receipts by approximately $557,268.
During the hearing in West Palm Beach before U.S. District Judge Donald M. Middlebrooks, Kumar admitted that he failed to report all his liquor store’s gross receipts and that he owed substantial income tax in addition to the amount declared on the 2017 tax return that he jointly filed with his wife.
Judge Middlebrooks will sentence Kumar on November 4, at 11:00 a.m. Kumar faces a maximum sentence of five years in federal prison.
Juan Antonio Gonzalez, Acting United States Attorney for the Southern District of Florida, and Acting Special Agent in Charge Matthew D. Line, IRS Criminal Investigation (IRS-CI), Miami Field Office, announced the guilty plea.
Assistant U. S. Attorney Marc Osborne is prosecuting this case.
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 no. 21-cr-80091.
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Rochester Man Sentenced to 36 Months for Stealing Nude Photos of Dozens of VictimsRead the Press Release
ALBANY, NEW YORK – Nicholas Faber, age 25, of Rochester, New York, was sentenced today to serve 36 months in prison for computer fraud and aggravated identity theft in connection with his hacking of online social media accounts and theft of nude images of dozens of female victims.
The announcement was made by Assistant Attorney General Kenneth A. Polite, Jr.; 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 State University of New York-Plattsburgh Police Chief Patrick Rascoe.
As part of his guilty plea on February 8, 2021, Faber admitted that from about 2017 to 2019, he worked with co-conspirator Michael Fish to access the school email accounts of dozens of female college students and then used information from those school email accounts to gain access to the victims’ social media accounts. Faber then stole, and traded online with others, private nude photographs and movies stored in the victims’ social media accounts. Also, as a result of Faber’s crimes, the university had to allocate money and staff to identifying compromised accounts, reviewing computer and server access logs, resetting passwords, and notifying students and parents.
Faber obtained his undergraduate degree from SUNY-Plattsburgh, graduating in 2017.
United States District Judge Mae A. D’Agostino also imposed a 3-year term of supervised release, which will start after Faber is released from prison, and ordered him to pay $35,430 in restitution to SUNY-Plattsburgh and a $200 special assessment.
Fish pled guilty to computer hacking, aggravated identity theft and child pornography offenses on May 19, 2020, and is scheduled to be sentenced on November 3, 2021.
This case was investigated by the FBI with substantial assistance from the SUNY-Plattsburgh Police Department. Deputy Chief Michael Stawasz from the Department of Justice Criminal Division’s Computer Crime and Intellectual Property Section, and Assistant U.S. Attorneys Joshua R. Rosenthal and Wayne A. Myers, prosecuted the case.
Previously Deported Man Pleads Guilty to Child Exploitation Crimes and Illegal ReentryRead the Press Release
Miami, Florida – A 29-year-old Mexican national living in South Florida who pretended to be a nine-year-old girl during on-line chats and solicited minors to produce child sexual abuse material pled guilty today in federal district court in West Palm Beach to committing child exploitation crimes and being in the United States illegally following deportation.
Andres Rivera Reyes, who has lived both in Boca Raton and Pompano Beach, Florida, admitted that over the past two years, he posed as a nine-year-old girl on social media to try to obtain child sexual abuse material from girls in the United States as young as eight. Rivera Reyes used social media networking platforms to share and receive child sexual abuse material and kept videos on his cellular phone of children under 12 engaged in sexually explicit acts. Rivera Reyes also admitted that he is in the United States illegally and that the United States had previously deported him twice.
Rivera Reyes pled guilty to one count of attempted production of child pornography, two counts of receipt of child pornography, one count of distribution of child pornography, and one count of possession of child pornography. U.S. District Judge Robin L. Rosenberg, who sits in West Palm Beach, will sentence Rivera Reyes on October 20, at 11:00 a.m. Rivera Reyes faces up to 112 years’ imprisonment.
Juan Antonio Gonzalez, Acting U.S. Attorney for the Southern District of Florida, and George Piro, Special Agent in Charge, Federal Bureau of Investigations (FBI ), Miami Field Office, announced the guilty plea.
FBI Miami investigated the case. Homeland Security Investigations (HSI), Miami Field Office, assisted. Assistant U.S. Attorney Gregory Schiller is prosecuting this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov under case number 21-cr-80064.
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Portland Area Identity Thief Pleads Guilty in Federal CourtRead the Press Release
PORTLAND, Ore.—A Gresham, Oregon man pleaded guilty today for stealing financial and identification documents from more than 100 people in and around Portland.
Robert Loren Finanders, 40, pleaded guilty to unauthorized access device fraud, aggravated identity theft, illegally possessing a firearm as a convicted felon, and possessing with intent to distribute methamphetamine.
According to court documents, between April 2019 and April 2020, Finanders is alleged to have stolen financial and identification documents from dozens of people in the Portland area with the intent to steal money from them and from local businesses. Finanders spent tens of thousands of dollars using stolen credit cards and other personal information. Some of the identity material recovered had been located in wallets and purses stolen from vehicles.
The Portland Police Bureau’s (PPB) East Precinct Street Crimes Unit began investigating Finanders in late September 2019 after finding a fraudulent Oregon driver’s license in the name of an adult victim during an arrest. The license had Finanders’ photo on it in place of the named victim. Investigators learned that around the same time, police officers in Bend, Oregon had arrested Finanders and a co-conspirator after receiving a report of a person using a stolen credit card at a local restaurant.
Bend police searched the vehicle driven by Finanders’ co-conspirator and found a passport, W2s, and a retail credit card matching the name of the victim whose stolen driver’s license was recovered by PPB. A search of Finanders’ Bend hotel room returned several additional W2s in the name of another victim and a victim profile notebook.
PPB officers linked Finanders to additional identity theft crimes in Portland, Gresham, and Lake Oswego, Oregon and, on January 22, 2020, executed a search warrant at his Gresham residence. Officers seized stolen profiles of more than 80 individuals; dozens of stolen and fraudulent identification and personal documents including passports, government-issued identification cards, and driver’s licenses; an embosser; a card reader; stolen mail; additional victim profile notebooks; three handguns; a dismantled AR-15; body armor; and evidence of drug trafficking.
On March 12, 2020, a federal grand jury in Portland returned a nine-count indictment charging Finanders. On April 1, 2020, he was arrested by PPB.
Finanders will be sentenced on December 6, 2021 by U.S. District Court Judge Karin J. Immergut.
As part of his plea agreement, Finanders has agreed to pay restitution in full to his victims.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the PPB East Precinct Street Crimes Unit with assistance from Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the U.S Postal Inspection Service. It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Pineville Man Sentenced for Illegal Possession of FirearmsRead the Press Release
ALEXANDRIA, La. - Acting United States Attorney Alexander C. Van Hook announced that Billy Ray Jones, Jr., 39, of Pineville, was sentenced by United States District Judge Dee D. Drell to 57 months in prison, followed by 3 years of supervised release.
Jones pleaded guilty on May 18, 2021 to one count of being a convicted felon in possession of a firearm. The charges stem from an incident in November 2019 when law enforcement officers from the Rapides Parish Sheriff’s Office and Lecompte Police Department began investigating a burglary at a Burger King in the Lecompte area. Information obtained by law enforcement led them to suspect that Jones, who was the boyfriend of the restaurant manager, committed the burglary. Officers obtained a search warrant for the residence where Jones was living. Upon execution of the warrant, officers found the burglar’s attire and mask in a bag in the master bedroom closet, along with a wallet with identification belonging to Jones. Also in the closet were six firearms and two homemade silencers.
While searching the residence, an adult and juvenile approached from the nearby woods wearing camouflage hunting attire and both had rifles with scopes. Not knowing the adult male was Jones, officers directed them away from the residence. When they learned it was Jones, the female in the residence called them back and he arrived without the rifle that he had been previously carrying. Jones initially denied that the firearms, burglar’s attire and mask in the closet belonged to him, and that he had been carrying the rifle previously. Another search warrant was obtained for the rifle that Jones had been carrying and it was found hidden in a nearby field under tree limbs and pine straw. Jones was interviewed again and admitted to committing the burglary at Burger King and that he had purchased the rifle with money obtained during the burglary, as well as the fact that he had control of the six firearms and silencers in the closet.
Jones has prior convictions for attempted possession of a firearm by a convicted felon (2018), illegal possession of stolen things (2018), and simple burglary (2008) and was prohibited from possessing any firearms.
The ATF, Rapides Parish Sheriff’s Office and Lecompte Police Department conducted the investigation. Assistant U.S. Attorney Earl M. Campbell prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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Parolee Pleads Guilty to Theft of Government Property for Stealing Humvee from Army Reserve Center in UplandRead the Press Release
LOS ANGELES – A Pomona man who stole a military Humvee from the Army Reserve Center in Upland and briefly led police on a chase through Pomona’s residential streets pleaded guilty today to a federal criminal charge.
Armando Garcia, 30, pleaded guilty to one count of theft of government property. At the time of the offense, Garcia was on parole after being convicted in 2019 in state court on theft and burglary charges.
According to court documents, on November 9, 2020, Garcia stole a militarized High Mobility Multipurpose Wheeled Vehicle – commonly known as a Humvee – that had been secured by a padlock at the Reserve Center in Upland.
Soon after Garcia drove off with the semi-armored combat vehicle with a turret mount, Pomona Police officers saw the Humvee and attempted to make a traffic stop of the unlicensed vehicle, according to a complaint affidavit previously filed in this case.
“During the pursuit, which lasted approximately four minutes, the Humvee traveled at excessive speeds, drove on the wrong side of the street (in the direction of oncoming traffic), failed to stop at multiple red lights and stops signs, and failed to signal for turns,” according to the affidavit. Garcia stopped the Humvee in front of a home on a residential street in Pomona and was arrested at the scene.
Inside the Humvee, police found a large pair of bolt cutters and an Army-approved padlock that appeared to have been cut, according to the complaint, which notes the padlock had secured a steel wire put in place to prevent the turning of the steering wheel inside the vehicle.
United States District Judge John A. Kronstadt has scheduled a December 2 sentencing hearing, at which time Garcia will face a statutory maximum sentence of 10 years in federal prison.
The FBI’s San Gabriel Valley Safe Streets Task Force investigated this matter. The Pomona Police Department is the sponsoring agency of the Task Force and has hosted the task force since its inception in 2008.
Assistant United States Attorney Juan M. Rodríguez of the General Crimes Section is prosecuting this case.
Operation Leads to Conviction of 26 Brunswick County Defendants, Including Highest-Ranking Member of Bloods Street Gang in Brunswick CountyRead the Press Release
BOLIVIA, N.C. – Beginning in 2017, the United States Attorney’s Office for the Eastern District of North Carolina partnered with the Brunswick County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) to investigate and prosecute violent Bloods gang members and high-volume drug traffickers operating in the Brunswick County area.
The ensuing investigation, named Operation Hell Swamp, led to the successful investigation, prosecution, and conviction of 26 defendants from the Brunswick County area.
During the investigation, agents seized fentanyl, heroin, crack cocaine, and multiple kilograms of cocaine. Agents also seized more than a dozen firearms.
Some of the defendants are described in detail below.
Nicholas Shamar Griffin described himself as the highest-ranking member of the Bloods street gang in Brunswick County. He was a significant cocaine and crack cocaine trafficker, who was also willing to use violence. While on federal supervised release for a prior federal conviction, Griffin shot a man during a gang-related dispute. Griffin was sentenced to more than 29 years’ imprisonment.
Covia Dzell Smith was a violent, high-level member of the Bloods street gang. The investigation showed that Smith committed several acts of violence, including a shooting. He was charged with drug trafficking offenses, was convicted at trial of all counts. He was sentenced to 25 years’ imprisonment.
Spencer Bryant was found responsible for distributing approximately fourteen kilograms of cocaine base in the Brunswick County area, and he was sentenced to more than 17 years’ imprisonment.
Andreis Jenrette was found in possession of cocaine, crack cocaine, fentanyl, marijuana, and a loaded firearm. He was sentenced to 15 years’ imprisonment.
Deonte Bigelow and Courtnae Wiley were arrested while transporting one kilogram of cocaine, which had a street value of approximately $35,000. In total, Bigelow was found responsible for trafficking approximately 28 kilograms of cocaine. Bigelow was sentenced to 10 years’ imprisonment.
Below is a summary of the results of the cases in this investigation:
- Nicholas Shamar Griffin, 7:18-CR-00174-D-1:
- Pled guilty to conspiracy to distribute and possess with intent to distribute a quantity of cocaine and 280 grams or more of cocaine base (crack)
- Sentence: 350 months’ imprisonment
- Covia Dzell Smith, 7:18-cr-00093-D-1:
- Convicted at trial of distribution of cocaine, marijuana
- Sentence: 300 months’ imprisonment
- Freeman Hankins Jr., 7:17-cr-00110-BR-1:
- Pled guilty to conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine and 28 grams or more of cocaine base (crack), and possession of a firearm in furtherance of a drug trafficking crime
- Sentence: 75 months’ imprisonment
- Deontray Tremell Bryant, 7:17-cr-00150-FL-1:
- Pled guilty to possession with intent to distribute a quantity of heroin
- Sentence: 70 months’ imprisonment
- Deonte Xavier Bigelow, 7:17-cr-00165-BR-1:
- Pled guilty to conspiracy to distribute and possess with intent to distribute cocaine, and possession with intent to distribute 500 grams or more of cocaine
- Sentence: 120 months’ imprisonment
- Courtnae Shantae Wiley, 7:17-cr-00165-BR-2:
- Pled guilty to possession with intent to distribute 500 grams or more of cocaine
- Sentence: 5 years’ probation
- Delmas C. Gause, 7:18-cr-00005-BR-1:
- Pled guilty to conspiracy to distribute and possess with intent to distribute 28 grams or more of cocaine base and a quantity of cocaine
- Sentence: 71 months’ imprisonment
- Michael Montray Frink, 7:18-cr-00033-BO-1:
- Pled guilty to possession with intent to distribute a quantity of heroin, possession of a firearm by a felon, and possession of a firearm in furtherance of a drug trafficking crime
- Sentence: 117 months’ imprisonment
- Alex Alterick Hamilton, 7:18-cr-00034-BO-1:
- Pled guilty to distribution of a quantity of cocaine; possession of a firearm in furtherance of a drug trafficking crime
- Sentence: 262 months’ imprisonment
- Ryan Alexander Stewart, 7:18-cr-00040-D-1:
- Pled guilty to possession with intent to distribute 28 grams or more of cocaine base
- Sentence: 60 months’ imprisonment
- Victor Demetrious Watson, 7:18-cr-00035-BO-1:
- Pled guilty to possession with intent to distribute a quantity of heroin; possession of a firearm in furtherance of a drug trafficking crime
- Sentence: 120 months’ imprisonment
- Terrance Leon Washington, 7:18-cr-00039-D-1:
- Pled guilty to distribution of cocaine and cocaine base (crack); possession with intent to distribute a quantity of cocaine
- Sentence: 60 months’ imprisonment
- Wayne Levanughn King, 7:18-cr-00056-BR-1:
- Pled guilty to conspiracy to distribute and possess with intent to distribute 280 grams or more of cocaine base (crack)
- Sentence: 120 months’ imprisonment
- Rodrick Bryant, 7:18-cr-00081-BO-1:
- Pled guilty to conspiracy to distribute and possess with intent to distribute 28 grams or more of cocaine base (crack) and a quantity of marijuana
- Sentence: 42 months’ imprisonment
- Zane Alan Williams, 7:18-cr-00146-D-1:
- Pled guilty to distribution of a quantity of cocaine
- Sentence: 120 months’ imprisonment
- Andreis Jenrette, 7:18-cr-00175-BO-1:
- Pled guilty to conspiracy to distribute and possess with intent to distribute a quantity of cocaine and 280 grams or more of cocaine base (crack); possession with intent to distribute a quantity of cocaine and a quantity of cocaine base (crack); possession of a firearm in furtherance of a drug trafficking crime
- Sentence: 180 months’ imprisonment
- Hester Griffin, 7:18-cr-00174-D-2:
- Pled guilty to possession with intent to distribute a quantity of cocaine
- Sentence: time served, then six months’ imprisonment for violation of supervised release
- Gregory Orlando Gause, 7:19-cr-00041-FL-1:
- Pled guilty to conspiracy to distribute and possess with intent to distribute 28 grams or more of cocaine base (crack); distribution of a quantity of cocaine base (crack)
- Sentence: 28 months’ imprisonment
- Spencer Lamont Bryant, 5:19-cr-00113-D-1:
- Pled guilty to conspiracy to distribute and possess with intent to distribute 280 grams or more of cocaine base; distribution of a quantity of cocaine base
- Sentence: 210 months’ imprisonment
- Bruce James Daniels, Sr.:
- Pled guilty to conspiracy to distribute and possess with intent to distribute 280 grams or more of cocaine base; distribute of a quantity of cocaine base
- Sentence: 39 months’ imprisonment
- Anthony Junior Bell, 7:19-cr-00095-FL-1:
- Pled guilty to conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine and 28 grams or more of cocaine base; possession with intent to distribute 28 grams or more of cocaine base; possession of a firearm by a felon
- Sentence: 66 months’ imprisonment
- Malcolm Jackson, 7:19-cr-00113-BO-1:
- Pled guilty to conspiracy to distribute and possess with intent to distribute 280 grams or more of cocaine base (crack); possession with intent to distribute a quantity of cocaine base (crack)
- Sentence: 144 months’ imprisonment
- Dev Vontrai Bland, 7:20-CR-00082-D-1:
- Pled guilty to distribution of a quantity of cocaine; possession of a firearm by a convicted felon
- Sentence: 151 months’ imprisonment
- Shawn Deontae Hewett, 7:20-cr-00162-D-1:
- Pled guilty to conspiracy to distribute and possess with intent to distribute cocaine and 280 grams or more of cocaine base (crack); possession with intent to distribute a quantity of cocaine and a quantity of cocaine base (crack); possession of a firearm in furtherance of a drug trafficking crime
- Not yet sentenced
- Oneisha Williams, 7:20-cr-00162-D-2:
- Pled guilty to possession with intent to distribute cocaine and cocaine base (crack)
- Not yet sentenced
- Gregory Lee Bellamy, 7:20-cr-00164-D-1:
- Pled guilty to conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin and 500 grams or more of cocaine; distribution of a quantity of heroin, cocaine base (crack); possession with intent to distribute a quantity of cocaine; possession of a firearm in furtherance of a drug trafficking crime; possession of a firearm by a convicted felon
- Not yet sentenced
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina, made the announcement. The Brunswick County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) investigated the cases and Assistant U.S. Attorney Scott A. Lemmon prosecuted the cases.
Valuable assistance was also provided by the District Attorney’s office for Brunswick, Columbus, and Bladen counties.
Operation Hell Swamp is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case is also part of the United States Attorney’s Office’s Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For additional information about this initiative, click here https://www.justice.gov/usao-ednc/tbnc.
A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for the case numbers listed above.
- Nicholas Shamar Griffin, 7:18-CR-00174-D-1:
Omar Amanat Sentenced to Prison for Multiple Fraud Schemes After Conviction at Trial During Which He Fabricated EvidenceRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced today that OMAR AMANAT, an associate of codefendant Kaleil Isaza Tuzman, the former chairman and chief executive officer of the technology start-up company KIT digital, Inc. (“KITD”), was sentenced today by U.S. District Judge Paul G. Gardephe to five years in prison for participating in various securities fraud-related offenses. AMANAT and Tuzman were found guilty in 2017 after a two-month trial presided over by Judge Gardephe. AMANAT was convicted of conspiracy to commit wire fraud, wire fraud, aiding and abetting investment advisor fraud, and conspiracy to commit securities fraud.
U.S. Attorney Audrey Strauss said: “Omar Amanat defrauded investors of millions of dollars through years of lies and deceit. Among his many fraudulent tactics, Amanat teamed up with Kaleil Tuzman and others to manipulate stock prices and hide investment losses through years of false account statements. When finally caught, Amanat doubled down on his lies by introducing fake emails into the trial record as ‘exculpatory’ evidence. Neither the Government nor the jury was fooled. Amanat was convicted on all counts and remanded by the Court into federal custody, where he will remain until his sentence is served.”
According to the Indictment and other filings in Manhattan federal court and the evidence presented at trial:
The Scheme to Defraud Maiden Capital Investors
Stephen Maiden[1] was the managing member of Maiden Capital, a hedge fund that managed portfolios of securities. Between in or about February 2009 and in or about June 2012, AMANAT, along with Maiden and others, devised and carried out a scheme to hide from Maiden Capital investors the fact that Maiden Capital’s investments in Enable – an investment fund run by AMANAT’s brother and codefendant, Irfan Amanat, for which AMANAT raised money (based, in part, on false and misleading representations) – had been lost. To facilitate the scheme, Maiden, with the knowledge and approval of AMANAT, generated false client account statements that failed to disclose the Enable losses. In addition, AMANAT wired hundreds of thousands of dollars to a Maiden Capital bank account to support Maiden Capital, including to allow Maiden to repay investors whose redemption requests could not be forestalled and thus to continue to keep secret from Maiden Capital investors the Enable losses for over three years.
The Market Manipulation Scheme
Between in or about December 2008 and in or about September 2011, AMANAT, Tuzman, and Maiden engaged in efforts to artificially inflate the share price and trading volume of KITD shares. During this time period, KITD shares traded on the OTC Bulletin Board and on the NASDAQ. Maiden, at Tuzman and AMANAT’s direction, purchased and sold shares of KITD through Maiden Capital, for the purpose of manipulating KITD’s stock price and creating the illusion of greater volume in the trading for KITD shares.
For instance, Maiden, with Tuzman’s knowledge and approval, frequently engaged in match trading in which Maiden caused an account under Maiden’s control to buy or sell KITD stock, and on the same day caused an account under Maiden’s control to take the opposite position. Tuzman also directed Maiden to make timely purchases of KITD stock in an effort to manipulate the price of KITD shares at certain critical times, including, for example, when KITD was seeking to raise additional capital and in the weeks before KITD’s stock was uplisted to the NASDAQ. At times, Maiden was responsible for nearly all of the day’s trading activity in KITD stock.
Amanat’s Fabrication of Evidence
Evidence at trial also revealed that AMANAT produced to the Government and entered into evidence at trial emails that had been fabricated. After two evidentiary hearings, the Court allowed the Government to present to the jury evidence of AMANAT’s use of false and fabricated email evidence during the trial. After the verdict, Judge Gardephe revoked AMANAT’s bail and ordered him remanded into custody, citing numerous factors, including that “substantial evidence was introduced at trial that Mr. Amanat fabricated emails” showing “disdain for the court” and its procedures.
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AMANAT, 48, was also sentenced to three years of supervised release and ordered of pay a fine of $175,000.
Tuzman, 49, is scheduled to be sentenced by Judge Gardephe on September 10, 2021, at 12:00 p.m.
Irfan Amanat, 50, was convicted at a separate trial before Judge Gardephe in October 2018. He is scheduled to be sentenced by Judge Gardephe on September 8, 2021, at 1:00 p.m.
Ms. Strauss praised the investigative work of the Federal Bureau of Investigation and the U.S. Postal Inspection Service. She also thanked the Securities and Exchange Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Andrea M. Griswold, Joshua A. Naftalis, and Daniel M. Tracer are in charge of the prosecution.
[1] Maiden pled guilty to various offenses for his role in the schemes and cooperated with the Government.
North Carolina Man Indicted on Federal Charges of Sex Trafficking, Transporting an Individual to Engage in Prostitution, and Possession with the Intent to Distribute Controlled SubstancesRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging Adolph J. Scott, a/k/a “A”, a/k/a “AJ”, a/k/a “Ghost”, a/k/a “Jay”, age 36, of Spring Lake, North Carolina, for the federal charges of sex trafficking by force, fraud, and coercion; interstate transportation of an individual to engage in prostitution; and possession with intent to distribute controlled substances.
The indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; and Chief Lisa D. Myers of the Howard County Police Department.
According to the three-count indictment, from at least January 2020 to February 2021, in the District of Maryland, the Eastern District of North Carolina, and elsewhere, Scott recruited, enticed, transported, advertised, and solicited Victim 1 to conduct sexual acts for his financial benefit.
Specifically, the indictment alleges from January 23, 2021 to January 24, 2021 that Scott transported Victim 1 from Maryland to North Carlina with the intent that Victim 1 would engage in prostitution and sexual activity.
The indictment further alleges that Scott also possessed controlled substances with intent to distribute including: a mixture or substance containing a detectable amount of fentanyl, a mixture or substance containing a detectable amount of heroin, and a mixture or substance containing a detectable amount of cocaine.
If convicted, Scott faces a mandatory minimum sentence of 15 years in federal prison and a maximum sentence of life in prison for sex trafficking. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. Scott is currently detained on related state charges.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case was investigated by law enforcement agencies that are members of the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
Report suspected instances of human trafficking and sex trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
Acting United States Attorney Jonathan F. Lenzner commended HSI and the Howard County Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Mary Setzer who is prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/community-outreach.
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New York Man Sentenced to 36 Months for Stealing Nude Photos of Dozens of VictimsRead the Press Release
A New York man was sentenced today to 36 months in federal prison for computer fraud and aggravated identity theft in connection with his hacking of online social media accounts and theft of nude images of dozens of women.
Nicholas Faber, 25, of Rochester, pleaded guilty on Feb. 8. According to court documents, Faber admitted that from about 2017 to 2019, he worked with co-conspirator Michael Fish to access the school email accounts of dozens of female SUNY-Plattsburgh students and then used information from those school email accounts to gain access to the victims’ social media accounts. Faber then stole, and traded online with others, private nude photographs and movies stored in the victims’ social media accounts. As a result of Faber’s crimes, the university had to allocate money and staff to identifying compromised accounts, reviewing computer and server access logs, resetting passwords and notifying students and parents.
Faber obtained his undergraduate degree from SUNY-Plattsburgh, graduating in 2017.
In addition to the 36 month prison sentence, United States District Judge Mae A. D’Agostino also imposed a three year term of supervised release, which will start after Faber is released from prison, and ordered him to pay $35,430 in restitution to SUNY-Plattsburgh and a $200 special assessment.
Fish pleaded guilty to computer hacking, aggravated identity theft and child pornography offenses on May 19, 2020 and is scheduled to be sentenced on Nov. 3.
This case was investigated by the FBI's Albany Field Office with substantial assistance from the SUNY-Plattsburgh Police Department.
Deputy Chief Michael Stawasz of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Joshua R. Rosenthal and Wayne A. Myers of the U.S. Attorney’s Office for the Northern District of New York are handling the case.
New Haven Man Charged with Crack Cocaine Distribution OffensesRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that a federal grand jury in Hartford has returned an indictment charging ZAQUAWN ARRINGTON, 22, of New Haven, with three counts of possession with intent to distribute cocaine base (“crack”).
The indictment was returned on July 27. Arrington appeared yesterday via videoconference before U.S. Magistrate Judge Robert A. Richardson and pleaded not guilty to the charge. Arrington has been detained since July 21.
As alleged in court documents, on January 9, 2021, Arrington was arrested by West Haven Police after they found him in possession of crack cocaine packaged for distribution and $763 in cash. Subsequent analysis of an iPhone seized from Arrington at the time of his arrest revealed multiple photos and videos of firearms, including photos of Arrington possessing firearms.
It is further alleged that on June 22, 2021, New Haven Police attempted to stop a vehicle being operated by Arrington, but Arrington fled at a high rate of speed. On July 6, 2021, New Haven Police located Arrington and arrested him. At the time of his arrest, Arrington possessed crack cocaine packaged for distribution and $580 in cash.
Arrington was arrested on a federal criminal complaint on July 21, 2021. A search of Arrington’s residence on the date of his arrest revealed crack cocaine packaged for distribution, a digital scale, and $2,075 in cash. It is further alleged that, the following day, a court-authorized search of a parked vehicle that Arrington had been seen accessing revealed a loaded ghost gun.
If convicted, Arrington faces a maximum term of imprisonment of 20 years on each count of the indictment.
Acting U.S. Attorney Boyle stressed that an indictment is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Federal Bureau of Investigation’s New Haven Safe Streets/Gang Task Force, the New Haven Police Department and the West Haven Police Department. The Task Force includes members from the Connecticut State Police, Connecticut Department of Correction and the New Haven, Milford, East Haven and West Haven Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys John T. Pierpont, Jr. and Natasha M. Fresimuth
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.
New Hampshire Man Sentenced for Conspiring to Distribute MethamphetamineRead the Press Release
PORTLAND, Maine: A New Hampshire man was sentenced today in U.S. District Court in Portland for conspiring to distribute over 500 grams of methamphetamine, Acting U.S. Attorney Donald E. Clark announced.
U.S. District Judge D. Brock Hornby sentenced Joseph Fall, 40, to 78 months in prison and five years of supervised release. Fall pleaded guilty on March 29, 2021.
According to court records, between March 2018 and February 2019, Fall conspired with his wife and others to distribute methamphetamine in New Hampshire and Maine. During the conspiracy, Fall and his wife were stopped by the Illinois State Police while bringing methamphetamine back to New England from California. Law enforcement officers seized nearly a kilogram of methamphetamine from their vehicle as part of that traffic stop. Investigators later made multiple controlled purchases of methamphetamine from Fall and his co-conspirators. Fall was living in Rumford, Maine at the time.
The U.S. Drug Enforcement Administration, the Rumford Police Department, the Maine Drug Enforcement Agency, the New Hampshire State Police, the New Hampshire Attorney General’s Drug Task Force, the Carroll County (New Hampshire) Sheriff’s Office and the Illinois State Police investigated the case.
Nevada Medical Practice Agrees to Pay $1 Million to Resolve Allegations of False Medicare Reimbursement ClaimsRead the Press Release
BOSTON – Nevada Advanced Pain Specialists (NAPS), a Reno-based medical practice, has agreed to resolve allegations that it submitted false claims for payment to Medicare for medically unnecessary urine drug testing (UDT).
Pursuant to the settlement agreement, NAPS admits that it ordered confirmatory UDT—testing designed to confirm the results of presumptive UDT—despite failing to first obtain presumptive UDT results. In fact, NAPS did not consult the presumptive UDT results before ordering their confirmation but continued to perform presumptive tests in-house and bill Medicare as if they were medically necessary. NAPS admits that its performance of presumptive UDT played no role in its medical decision-making regarding whether to order confirmatory UDT from a clinical laboratory.
“NAPS ordered presumptive testing in order to collect more from Medicare, not because the tests were medically necessary,” said Acting U.S. Attorney Nathaniel R. Mendell. “It’s not supposed to work that way, of course. NAPS was improperly draining resources from an important federal program, and we commend it for resolving the matter expeditiously.”
“Healthcare providers are expected to closely follow Medicare rules and bill properly — nothing more, nothing less,” said Special Agent in Charge Phillip M. Coyne of the U.S. Department of Health and Human Services, Office of Inspector General. “When that obligation is violated, government health care programs – and American taxpayers – pay the price. We are committed to pursuing these types of allegations along with our law enforcement partners as we work to protect the integrity of our federal healthcare system.”
“Public health insurance programs, such as Medicare, incur staggering financial losses when their programs are exploited. Today’s settlement should make it perfectly clear that those who bill for medically unnecessary tests will be held accountable,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division.
This settlement resolves claims brought as part of a lawsuit filed by a whistleblower under the qui tam provisions of the False Claims Act, which allows private parties to bring suit on behalf of the government and to share in any recovery. In connection with today’s announced settlement, the relator will receive $150,000 of the recovery.
Acting U.S. Attorney Mendell, HHS-OIG SAC Coyne, and FBI Boston SAC Bonavolonta made the announcement today. The Department of Veterans Affairs also provided assistance. Assistant U.S. Attorneys Abraham R. George and Charles B. Weinograd of Mendell’s Affirmative Civil Enforcement Unit handled the matter.
Natchez Woman Pleads Guilty to Possessing a Firearm as a Convicted FelonRead the Press Release
Jackson, Miss. – A Natchez woman pled guilty in federal court to possessing a firearm as a convicted felon, announced Acting U.S. Attorney Darren J. LaMarca of the Southern District of Mississippi, and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
According to court documents, on December 13, 2019, Williesia Laquanda Williams, 29, made a live social media video of herself driving and displaying a firearm. At that time, Williams was on parole and her parole officer saw the video. That evening, Williams was stopped by a Natchez police officer for a traffic violation and arrested for possessing the firearm as a convicted felon. Williams had been previously convicted of assaulting a correctional officer and possessing cocaine.
Williams is scheduled to be sentenced on November 16, 2021, and faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorney Bert Carraway is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Naknek Man Indicted on Drug ChargesRead the Press Release
ANCHORAGE – A federal grand jury in Anchorage returned an indictment yesterday charging a Naknek, Alaska, man for possession and attempted possession of methamphetamine and heroin.
According to court documents, Kenneth Bruce Bishop, 61, arranged for an associate to fly from Anchorage to King Salmon, Alaska, with approximately 170 grams of methamphetamine and approximately 50 grams of heroin. Staff of a regional air carrier at Merrill Field Airport detected the illegal drugs during a routine screening on July 29, 2021, and the Anchorage Airport Interdiction Team intercepted the drugs.
On August 3, law enforcement conducted a controlled delivery of the illegal drugs via the U.S. Postal Service in King Salmon. After Bishop picked up the package at the local post office and drove away, Alaska State Troopers pulled him over and found the contents of the package on the floor of the truck. The seized narcotics have an estimated street value of $220,000 and included approximately 50 user doses of heroin and more than 1,700 user doses of methamphetamine.
Bishop is scheduled for his initial court appearance on August 23 before U.S. Magistrate Judge Matthew M. Scoble of the U.S. District Court of Alaska. If convicted, he faces a mandatory minimum of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Bryan Wilson of the District of Alaska and Colonel Bryan Barlow, Director of the Alaska State Troopers made the announcement.
The Alaska State Troopers, the U.S. Postal Inspection Service, the U.S. Drug Enforcement Administration, the Anchorage Airport Interdiction Team, Alaska Wildlife Troopers and the Bristol Bay Police Department are investigating the case.
Assistant U.S. Attorney Yunah Chung 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.
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Missouri Army National Guardsman and Department of Defense Subcontractors Indicted for Conspiring to Steal and Sell Military GearRead the Press Release
EAST ST. LOUIS, Ill. – A federal grand jury in East St. Louis, Illinois, has returned an indictment charging three area men with conspiring to steal and sell sensitive equipment and other property belonging to the United States military.
Brandon Schulte, 43, of Jefferson City, Missouri, Jody (“Joe”) Stambaugh, 50, of Nashville, Illinois, and Gary Stambaugh, 77, of Fayetteville, Illinois, are accused of conspiring with each other and others unnamed to steal military uniforms, tactical robots, night vision sights, high frequency radios, and other functional military equipment.
“These allegations are very serious,” U.S. Attorney Steven D. Weinhoeft said. “The indictment charges a conspiracy to steal and sell sensitive military items. Any theft of government property harms the taxpayers, but worse, items such as equipment and uniforms could easily fall into the wrong hands and threaten the safety of our service members.”
“As the investigative arm of the Department of Defense, the DoD Office of Inspector General Defense Criminal Investigative Service (DCIS) is charted to protect our warfighters, DoD equipment, funds and other resources,” said Michael Mentavlos, Special Agent-in-Charge – DCIS, Southwest Field Office. “Today’s announcement demonstrates our commitment, along with our law enforcement partners, to aggressively pursue those that attempt to illegally profit from taxpayer funded resources.”
According to the indictment, Gary Stambaugh and Joe Stambaugh were co-owners of Stambaugh Enterprises, a scrap metal company located in Mascoutah, Illinois. Stambaugh Enterprises allegedly operated as a subcontractor on a DoD contract to pick-up, transport, and recycle scrap metal items from multiple DoD facilities in Illinois and Missouri, including Scott Air Force Base in St. Clair County, Illinois, and a Missouri Army National Guard facility in Jefferson City, Missouri.
The indictment alleges that the Stambaughs were obligated to mutilate and destroy all military property they hauled away from each DoD facility and were prohibited from reusing or refurbishing any military items for their own use or selling any military items to be reused or refurbished by someone else.
The Stambaughs allegedly removed truckloads of military property from DoD facilities but did not destroy or mutilate every item, in violation of their contracts. According to the indictment, the Stambaughs transported the military property to their place of business in Mascoutah and sorted through the items to determine what could be converted to their own use or sold to others.
From January-October 2017, Joe Stambaugh allegedly provided an unnamed person identified as J.S. with numerous military items to be sold for profit, including LED video screens, a high frequency radio, military night vision sights, a military antenna system, military flight helmets, and a military infrared thermal imager.
The indictment further alleges that the Stambaughs submitted “certificates of destruction” that falsely showed they had properly mutilated and destroyed the property when, in fact, they had stolen and retained items off the scrap piles for their own use and for sale.
Brandon Schulte was a national guardsman responsible for properly storing and disposing of military property at the Missouri Army National Guard facility in Jefferson City. According to the indictment, the Stambaughs received military uniforms and other unauthorized, sensitive military property from Schulte, even though Schulte allegedly knew the Stambaughs were authorized to receive only scrap metal.
The indictment charges that Schulte understood he was required to follow specific procedures to dispose of sensitive military items, including uniforms. Such procedures are vital to national security, as terrorist groups overseas have previously acquired U.S. combat uniforms and used them to impersonate American soldiers, endangering American troops. Nevertheless, Schulte allegedly supplied the Stambaughs with thousands of pounds of military uniforms and other non-scrap military equipment. The indictment charges Schulte with conspiring with the Stambaughs from 2015-2018, as well as making a false statement about his conduct to federal agents in 2019.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
The Stambaughs and Schulte are due in federal court for their initial appearances and arraignments on Sept. 1, 2021, before U.S. Magistrate Judge Mark A. Beatty in the federal courthouse in East St. Louis. If convicted, the Stambaughs face up to 10 years in prison on each of their three theft counts and up to 5 years in prison for the conspiracy. Schulte’s conspiracy count and separate charge for making a false statement each carry a maximum sentence of 5 years in prison.
This case is being investigated by agents with DCIS, the Defense Logistics Agency-Office of Inspector General, the Department of Homeland Security-Homeland Security Investigations, U.S. Army Criminal Investigation Command (CID), FBI-Springfield, and the Department of Commerce.
The case is being prosecuted by Assistant United States Attorney Luke J. Weissler.Middlesex County Man Admits Drug Trafficking OffenseRead the Press Release
CAMDEN, N.J. – A Middlesex County, New Jersey, man today admitted that he possessed several kilograms of heroin with the intent to sell, Acting U.S. Attorney Rachael A. Honig announced.
Eduard Avila Rivas, 33, of New Brunswick, New Jersey, pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to an information charging him with one count of possession with intent to distribute one kilogram or more of a mixture and substance containing a detectable amount of heroin.
According to documents filed in this case and statements made in court:
On Feb. 10, 2020, Avila Rivas travelled to Clarksboro, New Jersey, and met with an associate in order to carry out a sale of several kilograms of heroin. Following Avila Rivas’ arrival, law enforcement officers searched his vehicle and seized close to three kilograms of heroin packaged for sale.
The drug trafficking count to which Avila Rivas pleaded guilty is punishable by a minimum of 10 years in prison, a maximum of life in prison, and a maximum fine $10 million. Sentencing is scheduled for Dec. 22, 2021.
Acting U.S. Attorney Honig credited special agents of the Department of Homeland Security, Homeland Security Investigations (HSI), Atlantic City Office, under the direction of Special Agent in Charge Jason J. Molina, and the Atlantic County Prosecutor’s Office, under the direction of Acting Prosecutor Cary Shill, and the Gloucester County High Intensity Drug Trafficking Area (HIDTA) with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office Criminal Division in Camden.
Mexican National Sentenced to 10 Years for Attempting to Entice MinorRead the Press Release
EL PASO – Today a Mexican national was sentenced to 10 years in prison for attempting to entice a minor.
According to court documents, Cayetano Lopez, 50, of Mexico, attempted to entice a minor into engaging in sexually explicit conduct via a social media messaging application. On May 20, 2021, Lopez pleaded guilty to one count of enticement of a minor. By pleading guilty, Lopez admitted that in July 2020, he engaged in sexually explicit communications with a female he believed to be 13 years old, attempting to entice her into having unlawful sexual intercourse.
Lopez has remained in federal custody since his arrest on July 19, 2020, when he arrived at a prearranged meeting with the minor, who turned out to be an undercover agent.
“According to new data released by the National Center for Missing and Exploited Children, online enticement of children has increased 97.5% amid the pandemic,” said U.S. Attorney Ashley C. Hoff. “In response, the US Attorney’s Office, along with our law enforcement partners, has redoubled our efforts to prosecute these very serious cases and keep our children safe while using the internet.”
“I am proud of the work done by FBI El Paso Violent Crimes Against Children personnel to ensure that another child predator was taken off the streets,” said FBI Special Agent in Charge Jeffrey Downey, El Paso Division. “The FBI remains dedicated in the fight to protect our nation’s future by ensuring our children can prosper where individuals like Lopez do not threaten their welfare.”
The FBI investigated the case.
Assistant U.S. Attorney Michelle Winters prosecuted 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 CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Mexican National Sentenced for Toxic Marijuana Cultivation Operation in Stanislaus National Forest and Ordered to Pay for Environmental DamageRead the Press Release
FRESNO, Calif. — Eleno Fernandez-Garcia, 37, of Michoacán, Mexico, was sentenced today to 4 and a half years in prison for conspiring to manufacture, distribute, and possess with intent to distribute marijuana and ordered to pay $45,688 in restitution to the U.S. Forest Service for the environmental damage that the toxic chemicals and cultivation operation had on public land, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, the cultivation operation contained 9,654 marijuana plants and was located in the Basin Creek drainage in the Stanislaus National Forest in Tuolumne County. Fernandez was found at the grow site in possession of pruning shears and two cellphones, and was covered with marijuana debris. Three other individuals fled from the area, which is near recreational activities and Sugar Pine Springs, a natural spring used by two companies for bottled water.
The cultivation operation caused significant damage to the environment. Within the grow site, investigative agents found the pesticide Weevelcide, which contains aluminum phosphide, a lethal restricted use chemical; two types of rodenticides; 837 pounds of soluble fertilizer; 45.65 gallons of liquid fertilizer; and a dead raccoon. Nearly all of the native vegetation was cut down to make room for the marijuana plants. Besides chemicals and fertilizer, there was over 2,000 pounds of trash and irrigation tubing.
The grow site was in a grazing permit area where cows roamed freely and had access to the plants and chemicals. The Basin Creek complex also lies upstream of several species of conservation concern, including the Central Valley steelhead, federally threatened under the Endangered Species Act (ESA); chinook salmon, federally threatened under the ESA; and yellow-legged frog, a candidate for listing as threatened under both the federal and the California ESA.
This case was the product of an investigation by the U.S. Forest Service, California Department of Fish and Wildlife, the Campaign Against Marijuana Planting (CAMP) of the California Department of Justice, and the California Fish and Wildlife. Assistance was provided by the Integral Ecology Research Center, a non-profit organization dedicated to the research and conservation of wildlife and their ecosystems. Assistant U.S. Attorney Karen A. Escobar prosecuted the case.
Mexican National Found Guilty of Transporting Unaccompanied Minor from MexicoRead the Press Release
DEL RIO – Today a federal jury convicted a Mexican national for illegally transporting an unaccompanied child from Mexico.
According to court documents and evidence presented at trial, Victor Manuel Monsivais, 67, was apprehended at 1 a.m. in an HEB parking lot in south San Antonio transporting an unaccompanied 8-year-old child from Mexico. Monsivais intended to give the child back to another person involved in smuggling the child from Mexico into the United States. Special agents with HSI, as well as officers from the San Antonio Police Department, were waiting for Monsivais at the HEB based on investigative intelligence about the intended exchange. Monsivais was found guilty of one count of illegal alien transportation.
Co-defendants Elida Kassandra Moreno, 28, a United States citizen and Nery Uriostegui-Dominguez, 28, a Mexican national, pleaded guilty to bringing in and harboring aliens and conspiracy to bringing in and harboring aliens. Moreno was sentenced to 36 months in prison and a $1,000 fine on February 20, 2021. Uriostegui was sentenced to 18 months in prison on April 1, 2020.
U.S. Attorney Ashley C. Hoff of the Western District of Texas and Homeland Security Investigations (HSI) Acting Special Agent in Charge Craig Larrabee, San Antonio Division, made the announcement.
HSI with assistance from the San Antonio Police Department are investigating the case.
Assistant U.S. Attorneys Joshua Banister and Holly Pavlinski are prosecuting the case.
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Mean Peach and a Co-Conspirator Sentenced to Federal Prison for Fraud Scheme and Interstate Transportation of Stolen PropertyRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge James K. Bredar sentenced Mean Peach, age 65 and Eam Peng Chou, age 56, both of Philadelphia, Pennsylvania, to two years in federal prison and a year and a day in federal prison, respectively, each followed by three years of supervised release, for conspiracy and for interstate transportation of stolen property, in connection with a scheme to defraud a Maryland company of more than $2 million. Chief Judge Bredar also ordered Peach and Chou to each pay restitution in the amount of $1,645,494. The sentences were imposed yesterday.
The sentences were announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
According to their plea agreements and other court documents, Peach, Chou, and co-defendants Chonnathason Has and Thi Ho, conspired with Kevin Miller, who was employed as the Director of Planning, Logistics, and Control at Company A, located in Linthicum, Maryland, and was engaged in the business of manufacturing personal products, such as hair care, hair dye and lotions. Miller was responsible for determining the timing and volume requirements for materials used in the manufacturing operations at Company A, and had the authority to approve payments of invoices submitted by vendors and service providers without obtaining approval from anyone else at Company A.
As detailed in their plea agreements, from about September 2015, through March 2019, Peach, Chou, Has, Ho, and Miller engaged in a scheme to defraud Company A of at least $2.4 million. Specifically, in approximately September 2015, Company A assigned Miller the task of arranging for vendors to dispose of various waste products that were stored at the Company’s two warehouse locations in Maryland. Peach, Has, Chou, and other conspirators created and used shell companies in various names, with business addresses that were mail boxes at commercial mail facilities, to submit fraudulent invoices to Company A for waste disposal and other work that was never performed by those entities. Miller approved the fraudulent invoices and submitted them to Company A’s accounting department for payment. Company A then issued checks which the conspirators would transmit and cause to be transmitted from Maryland to Pennsylvania. Peach, Chou, and Has would cash the checks at facilities in Philadelphia and the proceeds would be divided up among the conspirators.
As a result of the conspiracy and scheme to defraud, the defendants caused Company A to issue approximately $2.4 million in checks for goods and services that it never received.
Thi Ho, age 51, of Bear, Delaware, who pleaded guilty to conspiracy and interstate transportation of stolen property, was sentenced to 46 months in federal prison and ordered to pay restitution of $2,478,069.16. Chonnathason Has, a/k/a Bora Has, age 54, of Philadelphia and Kevin Miller, age 48, of Bel Air, Maryland, pleaded guilty to their roles in the scheme and are scheduled to be sentenced on August 25, 2021 and October 22, 2021, respectively.
Acting United States Attorney Jonathan F. Lenzner commended the FBI for its work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Kathleen O. Gavin, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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McKees Rocks Felon Charged with Having a Gun and Ammunition in Violation of Federal LawRead the Press Release
PITTSBURGH, PA – A resident of McKees Rocks, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Dayvon Gandy, age 28, formerly of Robb Street, McKees Rocks, PA 15136, as the sole defendant.
According to the Indictment, on July 20, 2021, Harris, a convicted felon, was in possession of a firearm and ammunition. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm.
The law provides for a maximum total sentence of not more than ten (10) years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christopher M. Cook is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and City of Pittsburgh Bureau of Police conducted the investigation leading to the Indictment in this case.
This case is being prosecuted as 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.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Martinsburg Man Pleads Guilty to Distributing and Possessing Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Randell Adist, age 50, of Martinsburg, New York pled guilty today to distributing and possessing child pornography. The announcement was made by Acting United States Attorney Antoinette T. Bacon and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his guilty plea before United States District Court Judge David N. Hurd, Adsit, who has a prior New York State conviction for possessing a sexual performance by a child, admitted that he distributed child pornography using a social media application from approximately February 2020 through September 2020. Adsit also admitted that, on November 11, 2020, he possessed approximately 40 files depicting child pornography on his cell phone.
When Adist is sentenced on December 22, 2021, he faces at least 15 years and up to 40 years in prison for distributing child pornography and at least 10 years and up to 20 years in prison for possessing child pornography. In addition, Adist will be required to serve a term of supervised release of between five years and life after his term of incarceration and will be required to register as a sex offender. A defendant’s sentence is imposed by a judge based on the statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the FBI Syracuse Mid-State Child Exploitation Task Force, comprised of FBI Special Agents and Investigators of the New York State Police, Bureau of Criminal Investigation (BCI), and Computer Crimes Unit (CCU) and is being prosecuted by Assistant U.S. Attorney Michael D. Gadarian.
This case is being prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). 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 https://www.justice.gov/psc.
Man Sentenced for Drug Trafficking and Firearms Offenses in Stanly CountyRead the Press Release
GREENSBORO, N.C. - A Mount Gilead man was sentenced today in federal court in Greensboro for knowingly possessing a firearm as a convicted felon and for distribution of fentanyl, announced Acting United States Attorney Sandra J. Hairston of the Middle District of North Carolina.
JARBARRI RANDALE WALL, age 39, was sentenced to a 204-month term of imprisonment by United States District Judge Catherine C. Eagles. WALL was also ordered to pay a $200 special assessment and submit to 5 years of supervised release following his imprisonment. He was also revoked on his current term of supervised release and sentenced to serve a consecutive sentence of 24 months. WALL pleaded guilty on May 10, 2021, to possession of a firearm by a convicted felon and distribution of 40 grams or more of a mixture and substance containing fentanyl.
According to court documents, law enforcement officers conducted a controlled purchase of fentanyl from WALL using a confidential informant in October 2019. WALL traveled to Albemarle in Stanly County where he sold the informant 56 grams of fentanyl and gave the informant a sample of heroin. In September 2020, WALL told the informant he was traveling to Albemarle and could sell the informant more fentanyl. The informant alerted law enforcement who conducted a traffic stop as WALL drove through Stanly County towards Albemarle, after leaving a residence in Charlotte. A search of WALL’s car revealed marijuana, drug paraphernalia, a bag containing 30 grams of a mixture of heroin and fentanyl, and a FN Herstal 5.7 caliber semi-automatic pistol. The firearm had a 20-round magazine attached and was loaded with 18 rounds. A spare 20-round magazine loaded with 19 rounds was also found inside the car. WALL had $5,320 in cash on him when arrested and admitted to possessing the firearm and narcotics.
WALL had previously been convicted of Social Security Fraud in the U.S. District Court for the Middle District of North Carolina in January 2016 and was sentenced to 20 months’ imprisonment followed by 3 years of supervised release. WALL was still on federal supervised release when he committed these new offenses.
A search warrant later executed at the Charlotte residence maintained by WALL revealed two additional AR-15 style firearms, 61 grams of a mixture of heroin and fentanyl, approximately 900 pills which contained a mixture of both heroin and fentanyl, several firearm magazines including two drum magazines, different calibers of ammunition, 54 grams of marijuana, and a large amount of U.S. currency.
The case was investigated by Homeland Security Investigations, the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Albemarle Police Department, the Stanly County Sheriff’s Office, and North Carolina Alcohol Law Enforcement. The case was prosecuted by Assistant United States Attorney Craig M. Principe.
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Man Involved in Bridgeport Restaurant Robbery Sentenced to 66 Months in Federal PrisonRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that JERMAINE OGRINC, 35, of Bridgeport, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 66 months of imprisonment, followed by three years of supervised release, for his role in violent Bridgeport restaurant robbery in 2017.
According to court documents and statements made in court, on November 29, 2017, at approximately 8:00 p.m., Ogrinc and three other men entered the La Sabrosura Restaurant on East Main Street in Bridgeport. The robbers, two of whom were armed with firearms, forced two workers and a customer into the kitchen and ordered them to lie on the floor with their hands behind their heads. Another individual who was in a back room and heard screaming ran from the restaurant and flagged down the police. One of the robbers took a cellphone from one of the victims and cash from another, and the robbers attempted to break into an ATM in the restaurant. After spotting police, Ogrinc and his associates fled. Ogrinc was apprehended a short time later near the restaurant. In an interview with investigators, he admitted to his role in the robbery.
Ogrinc has been detained since his arrest. On March 11, 2021, he pleaded guilty to one count of Hobbs Act Robbery.
This investigation was conducted by the Federal Bureau of Investigation and the Bridgeport Police Department. The case was prosecuted by Assistant U.S. Attorney Rahul Kale.
Leader of Macon Meth Distribution Ring with Ties to Georgia Prison System Sentenced to Federal PrisonRead the Press Release
MACON, Ga. – A Macon man with a prior federal conviction for distributing methamphetamine was sentenced to serve more than 18 years in federal prison for his role directing a drug trafficking ring with ties to the Georgia prison system responsible for pushing large quantities of “ice” methamphetamine into Middle Georgia.
Richard Charles Allen, aka Chucky, 44, of Macon, was sentenced to serve 220 months in prison to be followed by three years of supervised release by U.S. District Judge Marc Treadwell on Wednesday, August 18, after previously pleading guilty to conspiracy to possess with intent to distribute methamphetamine. There is no parole in the federal system.
“Chucky Allen was obtaining large amounts of ‘ice’ methamphetamine from prisoners and then distributing this deadly drug in Middle Georgia. The DEA and our local law enforcement teams stopped a major source of methamphetamine from flowing into our communities, preventing further harm and death,” said Acting U.S. Attorney Peter D. Leary. “Allen is yet another repeat offender who is now facing federal consequences for choosing to commit crime. Our office will not hesitate to pursue federal charges against repeat felons engaging in the most egregious crimes.”
“DEA is fully committed to tirelessly pursuing criminals who sell drugs, whether they’re selling them on the streets or from inside a prison,” said the Special Agent in Charge of the DEA Atlanta Field Division Robert J. Murphy. “Strong law enforcement partnerships which led to the dismantlement of this once-thriving ‘meth’ ring underscores the power of combined forces and strategic partnerships. These components are vital in the war against ‘meth’ and other dangerous drugs.”
DEA agents began investigating Allen’s illegal narcotics distribution activities in the Middle Georgia region in April 2019. DEA conducted a series of controlled purchases from Allen using a confidential informant (CI) but were unable to identify Allen’s source of methamphetamine supply. As a result, agents sought and obtained a wiretap order on Allen’s phone number from a federal judge. Allen was recorded negotiating the purchase of a total of three kilograms of methamphetamine from an unknown source incarcerated in the Georgia prison system and one kilogram of methamphetamine from co-defendant, Cristian Estrada-Santa Maria, aka Strada, 35, who was also incarcerated in the Georgia prison system. Allen’s courier, co-defendant Joshua Noojin, 40, of Macon, was directed by Allen to retrieve the kilo of methamphetamine sourced by Estrada-Santa Maria. Noojin was taken into custody on September 7, 2019, after obtaining what amounted to be 990 grams of methamphetamine. Noojin was sentenced to serve 130 months in federal prison on July 13, after pleading guilty to conspiracy to possess with intent to distribute methamphetamine. Estrada-Santa Maria was sentenced serve 240 months in federal prison on May 18, after pleading guilty to conspiracy to possess with intent to distribute methamphetamine. In all, Allen is responsible for distributing 1231.462 grams of d-Methamphetamine Hydrochloride, also known as “ice.” Allen has a previous federal conviction for conspiracy to possess with intent to distribute methamphetamine.
The case was investigated by DEA, the Bibb County Sheriff’s Office, the Peach County Sheriff’s Office and the Marietta Police Department.
Criminal Chief and Assistant U.S. Attorney Michael Solis prosecuted the case.
Lafourche Parish Man Sentenced to Ten Years Imprisonment for Federal Drug Distribution ViolationsRead the Press Release
NEW ORLEANS, LOUISIANA – MONTRELL CLEVELAND, age 34, a resident of Raceland, Louisiana, was sentenced to 120 months’ imprisonment, 5 years of supervised release, and was ordered to pay $400.00 in special assessment fees by U.S. District Judge Carl J. Barbier after pleading guilty to four counts of a fourteen-count indictment charging him with several narcotics offenses, including conspiring to distribute and possess with intent to distribute fifty kilograms or more of methamphetamine and use of a communication facility to facilitate a drug trafficking crime, announced U.S. Attorney Duane A. Evans.
According to court documents, beginning in January 2018, Special Agents with the Drug Enforcement Administration made two controlled purchases of more than 50 grams of methamphetamine each from Kendall Mathews. After making the controlled purchases, agents obtained court ordered wiretaps of Mathews’s and co-conspirators’ telephones and intercepted numerous calls between Mathews, his co-conspirators including CLEVELAND, and customers in which they negotiated the sales of methamphetamine, cocaine hydrochloride, and heroin. Through their continued monitoring of telephone calls, agents identified a pending narcotics transaction and seized two kilograms of cocaine hydrochloride. Also, agents and officers obtained search warrants for co-conspirators’ residences and seized approximately 148 grams of heroin and 1,300 grams of a mixture or substance containing methamphetamine.
This prosecution was part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This case was investigated by the Drug Enforcement Administration, Office of Homeland Security Investigations, Terrebonne Parish Sheriff’s Office, and the Lafourche Parish Sheriff’s Office. The prosecution was handled by Assistant United States
Justice Department Files Suit to Stop Utah Physician from Issuing Opioid and Other Prescriptions in Violation of the Controlled Substances ActRead the Press Release
https://www.justice.gov/opa/pr/justice-department-files-suit-stop-utah-physician-issuing-opioid-and-other-prescriptions
Judge sentences St. Louis man for carjacking and murderRead the Press Release
ST. LOUIS – United States District Court Judge Henry E. Autrey sentenced Lashawn Clayburn, 19, of St. Louis, Missouri, to a 25-year term of imprisonment on today’s date. Clayburn pleaded guilty in May to murder and carjacking charges.
On January 5, 2019, Clayburn murdered Naomi Miller as she was about to get into her vehicle that was parked in her driveway outside her residence in Pine Lawn, Missouri. Ms. Miller was intending to go to work as an overnight home healthcare nurse when Clayborn approached her and shot her to death. Clayburn then stole Ms. Miller’s car and went on a joy-riding stint for several hours. During this time, Clayburn picked up two friends and stopped by Steak ‘n Shake for a burger and a milkshake.
The following day, Clayburn met up with a group of friends, who claimed to be members of the “Murdaa Gang,” and traded Ms. Miller’s carjacked vehicle for another stolen vehicle. As a result of a series of leads, Clayburn was interviewed by federal agents. Subsequent to the interview, Clayburn attempted to enlist his cousin to provide a phony alibi on Clayburn’s behalf for the night of the murder and carjacking. As a result of a continuing investigation, Clayburn was indicted by a federal grand jury for the above murder and carjacking, which resulted in Clayburn’s plea of guilty and today’s sentencing.
This case was investigated by ATF, the North County Police Cooperative, the St. Louis Metropolitan Police Department, and the Major Case Squad. Assistant United States Attorney Angie E. Danis is prosecuting this case for the United States of America.
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Johnstown Man Admits Distributing HeroinRead the Press Release
JOHNSTOWN, Pa. – A former resident of Johnstown, PA pleaded guilty in federal court to charges of violating federal narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
Willie Gene Gulley, Jr., 52, of Kunkle Street, Johnstown, PA, pleaded guilty to Count One and Count Two of the Indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that on or about March 1, 2018 and March 20, 2018, Gulley distributed less than 100 grams of heroin.
Judge Gibson scheduled sentencing for Jan. 4, 2022. The law provides for a maximum of 40 years in prison, a fine of $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force led the prosecution of Gulley.
Idaho Falls Man Sentenced to 27 Months in Federal Prison for Unlawful Possession of a FirearmRead the Press Release
BOISE – Kim Jarod Kouros Firouzbakhsh, 35, of Idaho Falls, was sentenced in U.S. District Court to 27 months in federal prison for the unlawful possession of a firearm, Acting U.S. Attorney Rafael M. Gonzalez, Jr. announced today. U.S. District Judge B. Lynn Winmill also ordered Firouzbakhsh to serve three years of supervised release following his prison sentence.
According to court records, on May 2, 2020, Nampa police officers responded to a report of domestic violence. Officers identified Firouzbakhsh as a suspect and discovered a firearm in his pants pocket. Firouzbakhsh is prohibited from possessing firearms due to a prior felony drug conviction and was on parole at the time of the offense. Firouzbakhsh pleaded guilty to the firearms charge on March 16, 2021.
Acting U.S. Attorney Gonzalez praised the joint investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Nampa Police Department, which led to charges. “It is illegal for convicted felons to possess firearms. Repeat offenders caught with illegal weapons in Idaho will face federal prosecution,” said Mr. Gonzalez. “The Nampa Police Department and departments throughout Idaho are working closely with ATF to hold repeat offenders accountable for their continued criminal actions. We will continue to work together to make cases to keep our community safe from criminal offenders,” he concluded.
This case was prosecuted as part of the Department of Justice’s Project Safe Neighborhoods (PSN) program. 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.
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Husband and Wife Sentenced in Large-Scale Fraud and Bribery Scheme Involving Two South Florida VA HospitalsRead the Press Release
Miami, Florida – A federal district judge in Fort Lauderdale yesterday sentenced the last of 16 defendants for their roles in a large-scale kickback and bribery scheme involving employees and vendors of the U.S. Department of Veterans Affairs (VA) Medical Centers located in West Palm Beach and Miami.
Earron Starks, 51, was sentenced to 30 months’ imprisonment, followed by three years of supervised release, and ordered to pay $2,451,000 in restitution. His wife, Carlicha Starks, 42, was sentenced to three years of supervised release, including one year of home confinement, and ordered to pay $501,000 in restitution.
Earron and Carlicha Starks, both from Hallandale Beach, Florida, were vendors who sold supplies to the VA. They, as did other vendors, paid kickbacks to VA employees in exchange for getting the VA’s business. Court filings describe how in exchange for cash bribes, medical center employees used government credit cards to order medical and other hospital supplies from these corrupt vendors. In some cases, the prices of the supplies were grossly inflated. In other cases, the orders were only partially fulfilled or not fulfilled at all. Ultimately, the fraud scheme enabled the Starks couple and other corrupt vendors to receive over $20 million in purchase orders with VA Medical Centers in West Palm Beach and Miami.
“There is no place for kickbacks in our veterans’ healthcare system,” said Juan Antonio Gonzalez, Acting U.S. Attorney for the Southern District of Florida. “These crimes not only violate the public’s trust, they also compromise the integrity of programs intended to help those who have made great sacrifices for our country. The United States Attorney’s Office will hold accountable anyone who tarnishes the VA through fraud, bribes, or other crimes.”
“These crimes were a gross violation of public trust and a threat to the resources used to care for our nation’s veterans and their families. The act of soliciting and accepting bribes undermines the vital work that honest VA employees do every day,” said David Spilker, Special Agent in Charge, U.S. Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division (VA-OIG, CI), Southeast Field Office. “The VA OIG is grateful for the United States Attorney’s Office’s partnership in holding these defendants accountable.”
Fourteen additional defendants were charged for their roles in this scheme. They pleaded guilty and received the following sentences:
Defendants who worked at West Palm Beach VA Medical Center (Case Number 19-80223-CR-KAM).
- Clinton Purvis, 54, of West Palm Beach, who pleaded guilty to one count of conspiracy to commit healthcare fraud, was sentenced to 27 months’ incarceration followed by 24 months of supervised release and ordered to pay $1.4 million in restitution.
- Christopher Young, 46, of West Palm Beach, who pleaded guilty to one count of conspiracy to commit healthcare fraud, was sentenced to 24 months’ probation.
- Kenneth Scott, 61, of Riviera Beach, who pleaded guilty to one count of conspiracy to commit healthcare fraud, was sentenced to 24 months’ probation and ordered to pay $295,511 in restitution.
- Robert “Bob” Johnson, 64, of West Palm Beach, who pleaded guilty to one count of conspiracy to commit healthcare fraud, was sentenced to 24 months’ imprisonment followed by 24 months of supervised release and ordered to pay $800,000 in restitution.
Defendants who worked at Miami VA Medical Center.
- Waymon Melvon Woods, 60, of Miami, pleaded guilty to one count of receiving a bribe as a public official and was sentenced to nine months’ incarceration, 36 months of supervised release and ordered to pay $120,505 in restitution (case number 19-20743-CR-FAM).
- Don Anderson, 61, of Port St. Lucie, Fl., pleaded guilty to one count of receiving a bribe as a public official and was sentenced to 10 days of incarceration, 36 months of supervised release, and ordered to pay $31,579 in restitution (case number 19-20746-CR-FAM).
- Jose Eugenio Cuervo, 55, of Miramar, Fl., pleaded guilty to one count of receiving a bribe as a public official and was sentenced to six months of home confinement, 36 months of supervised release, and ordered to pay $8,596 in restitution (case number 19-20748-CR-DPG).
- Donnie Shatek Hawes, 37, of Cutler Bay, Fl., who pleaded guilty to one count of receiving a bribe as a public official, was sentenced to 5 days of incarceration, 24 months of probation, and ordered to pay $2,900 in restitution (case number 19-20745-CR-RNS).
- Robert Lee James Harris, 46, of Miami Gardens, Fl., who pleaded guilty to one count of receiving a bribe as a public official, was sentenced to 6 months of home confinement, 36 months of probation and ordered to pay $7,775 (case number 19-20747-CR-RNS).
- Emir Gilberto Reyes,55, of Homestead, Fl., who pleaded guilty to one count of receiving a bribe as a public official, was sentenced to 60 months of probation and ordered to pay $18,380 (case number 20-20098-CR-FAM).
- Eugene Campbell, 62, of Miami Gardens, Fl., who pleaded guilty to one count of receiving a bribe as a public official, was sentenced to 36 months’ incarceration, 36 months of supervised release, and ordered to pay $592,717 in restitution (case number 19-20744-CR-UU).
Defendants who were VA supply vendors.
- Jorge Flores, 47, of Delray Beach, pleaded guilty to one count of conspiracy to commit healthcare fraud was sentenced to 18 months’ incarceration, 36 months of supervised release, and ordered to pay $2.1 million in restitution (case number 19-80200-CR-RS).
- Robert Kozak, 75, of Boca Raton FL, pleaded guilty to one count of conspiracy to commit healthcare fraud and was sentenced to 6 months’ incarceration, 36 months of supervised release, and ordered to pay $850,000 in restitution (case number 19-80201-CR-RS).
- Vincent Bellafiore, 47, of Palm Beach Gardens, FL, pleaded guilty to one count of conspiracy to commit healthcare fraud and was sentenced to 36 months’ probation and ordered to pay a $10,000 fine (case number 20-80077-CR-RS).
All VA employees were either terminated or resigned.
The convictions were the result of a lengthy investigation by Special Agents of VA-OIG CI, who uncovered the extensive scheme after receiving an anonymous tip. A related case in the Eastern District of Pennsylvania resulted in another VA employee being charged with bribery. VA OIG, Criminal Investigations Division, is responsible for conducting independent investigations of VA’s expansive programs and operations, which includes the largest healthcare system in the country.
Assistant U.S. Attorney Amanda Perwin is prosecuting the case.
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 19-80202-CR-WP.
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Groundbreaking extradition lands ELN members in Texas for narco-terrorism and international cocaine distributionRead the Press Release
HOUSTON – Two alleged members of one of the most serious transnational criminal organizations will make their initial appearances in U.S. federal court on charges of narco-terrorism and distributing kilogram quantities of cocaine from Colombia.
This is the first time believed members of the National Liberation Army (Ejército de Liberación Nacional aka ELN) have been extradited to the United States in their nearly 60-year history to face both narco-terrorism and drug trafficking charges. ELN is a Colombian guerrilla group officially designated as a foreign terrorist organization Oct. 8, 1997. It continues to operate as one of the largest narco-terrorism organizations in the world.
Yamit Picon-Rodriguez aka Choncha, 36, and Henry Trigos-Celon aka Moncho Picada, 44, were extradited and landed in Houston just moments ago. They are set to appear before U.S. Magistrate Judge Sam Sheldon at 10 a.m. tomorrow.
A federal grand jury returned an indictment against Picon-Rodriguez, Trigos-Celon and others Feb. 12, 2020. Colombian authorities took them into custody at the request of the United States in September 2020.
Picon-Rodriguez is charged with international cocaine distribution conspiracy along with five others. Those six are also charged with distribution of a controlled substance and knowing or intending to provide anything of pecuniary value to a person or organization that engages in terrorism or terrorist activity (narco-terrorism).
According to the indictment, Picon-Rodriguez, Trigos-Celon and others were involved in an ongoing 20-year conspiracy to distribute cocaine from Colombia to the United States knowing or intending to provide pecuniary support to the ELN.
In early 2019, Trigos-Celon and four others allegedly participated in distributing approximately 30 kilograms of cocaine in Colombia, knowing it would be imported into the United States.
Suspected ELN leader Villegas-Palomino aka Carlos El Puerco, 38, is also charged but not yet in custody. He is considered a fugitive as are Jaime Miguel Picon-Rodriguez aka Chencho and Jairo, 38, and Diomedes Barbosa-Montaño aka El Burro, 38. A warrant remains outstanding for their arrests. Anyone with information about their whereabouts is asked to contact the FBI at 1-800-CALL-FBI or submit tips online at tips.fbi.gov. The U.S. Department of State, through its narcotics rewards program, is offering up to a $5 million reward for information leading to the arrest and/or conviction of Villegas-Palomino.
The Houston Divisions of the FBI and Drug Enforcement Administration (DEA) conducted the investigation as part of the Organized Crime Drug Enforcement Task Forces (OCDETF). FBI and DEA agents in Bogota provided substantial support as did the Department of Justice’s (DOJ) multi-agency Special Operations Division, including assigned attorneys from the Narcotic and Dangerous Drug Section and National Security Division, as well as DOJ Judicial Attaches in Colombia with the cooperation of Colombian authorities. DOJ – Office of International Affairs, Houston Police Department, U.S. Southern Command and international partners including the Colombian Army, National Police, National Prosecutor's Office and Technical Body of Investigation also provided critical assistance.
The operation, dubbed Operation Catatumbo Lightning, is part of an OCDETF Strike Forces initiative which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs and transnational criminal organizations. The specific mission of the Houston Strike Force is to disrupt, dismantle and prosecute the drug trafficking organizations that are designated Consolidated Priority Organization or Regional Priority Organization Target heads with their affiliates that impact Houston and south Texas.
Assistant U.S. Attorneys Casey N. MacDonald and Anibal Alaniz of the Southern District of Texas are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Grand jury indicts individual for health-care fraud and drug offensesRead the Press Release
ST. LOUIS – On August 18, 2021, a federal grand jury issued a twenty-five count indictment against Katie Diana Rooney charging Rooney with health-care fraud and controlled substance offenses. At the time Rooney allegedly committed these offenses, she was a resident of St. Charles, Missouri.
The indictment alleges that through fraud and deceit, Rooney obtained prescriptions for Adderall and Xanax, both controlled substances. Rooney illegally sold these drugs to an undercover detective. Because the drugs were intended for Rooney’s two minor children, who were both Medicaid recipients, Medicaid paid for the drugs.
The charges set forth in this indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The United States Drug Enforcement Administration, the United States Department of Health and Human Services (Office of the Inspector General), and the Missouri Medicaid Fraud Control Unit are investigating this case. The case is being prosecuted by Assistant United States Attorney Dorothy L. McMurtry.
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Grand jury indicts doctor for illegally prescribing controlled substances and other chargesRead the Press Release
ST. LOUIS – On August 18, 2021, a federal grand jury issued a thirteen-count indictment against Matthew Steven Miller, D.O. charging Dr. Miller with illegally prescribing controlled substances and other related offenses. At the time Dr. Miller allegedly committed these offenses, he was licensed to practice medicine in Missouri, Michigan, and New Jersey.
The indictment alleges that Dr. Miller illegally prescribed Xanax to five individuals with whom Dr. Miller did not have a doctor-patient relationship. It further alleges that Dr. Miller was not licensed by the Missouri Bureau of Narcotic and Dangerous Drugs to prescribe Xanax The indictment also alleges that Dr. Miller never examined these individuals to determine whether they had a medical need for Xanax. The indictment additionally alleges that the Xanax that was obtained through the issuance of the illegal prescriptions and/or the money received as a result of the sale of the fraudulently obtained Xanax was shared with Dr. Miller.
The charges set forth in this indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The United States Drug Enforcement Administration, the United States Department of Health and Human Services (Office of the Inspector General), and the Missouri Medicaid Fraud Control Unit are investigating this case. The case is being prosecuted by Assistant United States Attorney Dorothy L. McMurtry.
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Grand jury indicts doctor for conspiring to and participating in a nationwide health-care fraudRead the Press Release
ST. LOUIS – On August 18, 2021, a federal grand jury issued a twenty-five count indictment against Scott Taggart Roethle, M.D., an anesthesiologist residing in Kansas, charging Dr. Roethle with conspiring to and participating in a nationwide health-care fraud. At the time Dr. Roethe allegedly committed these offenses, he was licensed to practice medicine in 22 states.
The indictment alleges the following: that beginning in 2017 and continuing until at least 2020, multiple telemedicine and marketing companies paid Dr. Roethle illegal kickbacks, totaling $674,026, to sign prescriptions and orders for orthotics, genetic tests, and topical creams. Dr. Roethle was typically paid $30 for each order or prescription he signed. The marketing and telemedicine companies solicited patients through the media and cold calls and then electronically transmitted patient information to Dr. Roethle through an electronic portal. In almost all instances, Dr. Roethle had no contact with the patients and did not determine if they needed the items or services before he signed the orders. Patients often complained to Dr. Roethle that they did not want or need the items he had ordered for them.
Roethle obtained medical licenses in 22 states and signed orders for thousands of patients residing in these states. Medicare Part B suffered a loss of over $26 million based on fraudulent prescriptions and orders signed by Dr. Roethle.
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 United States Department of Health and Human Services (Office of the Inspector General), United States Department of Defense (Office of the Inspector General) are investigating this case. The case is being prosecuted by Assistant United States Attorneys Dorothy L. McMurtry and Derek Wiseman.
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Grand jury indicts 4 individuals on gun and drug chargesRead the Press Release
ST. LOUIS – On August 11, 2021, a federal grand jury indicted Rebecca Hanks, 46, Zachary Siebert, 19, Amelia Siebert, 23, and Richard Frazier, 23, for drug and gun-related offenses that allegedly occurred in Lincoln County, Missouri. All 4 defendants have subsequently been arrested on this indictment.
The defendants are charged with the drug trafficking crime of conspiring to distribute and possess with the intent to distribute marijuana. Each defendant is also charged with possessing a firearm in furtherance of the above drug trafficking crime. In addition to those charges, Rebecca Hanks is charged with one count of being a felon in possession of a firearm and one count of maintaining a drug house located in Lincoln County, Missouri.
The charge of possessing a firearm in furtherance of a drug trafficking crime is punishable by a term of imprisonment of no less than 5 years and no more than life in the United States Bureau of Prisons. According to the relevant federal statute, this sentence must run consecutively to any other sentence imposed.
The charges set forth in this indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The Lincoln County Sheriff’s Department and the Drug Enforcement Administration (DEA) are investigating this case. The case is being prosecuted by Assistant United States Attorney Geoffrey S. Ogden.
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Georgia Man Convicted of Filing $165 Million in Fraudulent Tax ReturnsRead the Press Release
ATHENS, Ga. – A federal jury convicted a Lilburn, Georgia, man of filing fraudulent tax returns amounting to nearly $165 million in the name of several fake trusts.
Marquet Antwain Burgess Mattox, AKA Marquet Antwain Burgess Mattox El, AKA Marquet Burgess Mattox, AKA Asim Ashunta El, AKA Asim El Bey, 49, was found guilty of nine counts of wire fraud, ten counts of false claims against the U.S. Government and one count of theft of government funds by a federal jury on Wednesday, August 18, following a three-day trial that began on Monday, August 16. U.S. District Judge C. Ashley Royal presided over the trial and will sentence Mattox at a later date. Mattox is in custody. Mattox faces a maximum of 20 years in prison on the wire fraud counts, five years on the false claims counts and ten years on the theft of government funds count. Mattox also faces a period of supervised release, restitution, monetary penalties and forfeiture. There is no parole in the federal system.
“Mattox brazenly filed enormous fraudulent tax returns on made-up trusts—a criminal act that ultimately amounts to attempted theft, pure and simple,” said Acting U.S. Attorney Peter D. Leary. “Thanks to the efforts of IRS Criminal Investigation and the U.S. Treasury Inspector General for Tax Administration, Mattox will now be held accountable for his scheme.”
“Mattox intentionally manipulated the tax system for personal benefit,” said IRS-Criminal Investigation Special Agent in Charge James E. Dorsey. “The charges and prosecution shows that we do not tolerate those who seek an unfair advantage over hard-working taxpaying citizens. If you come across such tax schemes, including individuals luring others to commit 1099-OID schemes, please help us fight this inequity by reporting it to IRS Criminal Investigation.”
“TIGTA’s statutory mission includes investigating individuals who interfere with the lawful collection of taxes,” said J. Russell George, the Treasury Inspector General for Tax Administration. “Attempts to interfere with IRS employees engaged in the performance of their official duties will be aggressively pursued. We appreciate the efforts of the U.S. Attorney’s Office and IRS Criminal Investigation in working with TIGTA to protect the integrity of Federal tax administration.”
According to court documents and evidence presented at trial, between 2016 and 2018, Mattox filed at least 30 fraudulent federal income tax returns in the name of at least 11 different trusts. Those returns falsely represented that the trusts had earned interest income and that federal income taxes had been withheld and paid to the IRS. Mattox then fraudulently requested refunds on behalf of the purported trusts totaling nearly $165 million. The IRS paid approximately $5 million of the requested refunds, which Mattox used to purchase a house, expensive furniture and a luxury automobile.
The case was investigated by IRS-CI’s Atlanta Division and Office of the U.S. Treasury Inspector General for Tax Administration investigated the case.
Assistant U.S. Attorney Lyndie M. Freeman and Trial Attorney Jessica A. Kraft of the Justice Department’s Tax Division are prosecuting the case for the Government.