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Thursday 19 August 2021
Former employee sentenced for stealing over $400,000Read the Press Release
McALLEN, Texas - The former controlling manager of Lone Star Shredding’s parent company has been ordered to federal prison for defrauding his employer, announced Acting U.S. Attorney Jennifer B. Lowery.
Brian Janish, 44, pleaded guilty June 10.
Today, U.S. District Judge Randy Crane ordered him to serve a 24-month sentence to be immediately followed by three years of supervised release. The court further ordered Janish to pay $340,293.19 in restitution. At the hearing, the court heard additional testimony from a representative of the company that described the impact the crime had on the business.
Lone Star Shredding is a local subsidiary in Mercedes. Its parent company is located in Tennessee.
At the time of his plea, Janish admitted to using an unauthorized access device and engaging in other fraudulent activity to steal $403,293.19 between July 2013 and December 2017.
As part of his responsibilities, Janish was in charge of establishing bank accounts and approving expenses for the company. When the company switched banks, Janish failed to close the company’s previous bank account or destroy the corporate credit card issued in his name.
In fact, he charged personal expenses on the company credit card, including travel and online goods. Janish also wrote checks from the company account and withdrew cash for personal use. He attempted to cover his fraud by emailing fake bank statements to the company.
The Morristown, Tennessee, resident also increased his payroll without authorization.
Janish was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation. Assistant U.S. Attorneys Rodolfo Ramirez and Stephanie Bauman prosecuted the case.
Former coach charged with distributing pornographic images of childrenRead the Press Release
CORPUS CHRISTI, Texas – A 44-year-old Rockport man has surrendered to authorities following the return of an indictment alleging charges of distributing and possessing images of sexually-exploited children, announced Acting U.S. Attorney Jennifer Lowery.
A federal grand jury returned a two-count indictment Aug. 11 against Mark Daniel Malone. He is set to appear before U.S. Magistrate Judge Jason B. Libby tomorrow at 10:15 a.m.
The investigation allegedly revealed Malone was a former high school basketball coach.
According to the indictment, Malone uploaded images of sexually-exploited children onto the internet. The investigation later revealed he had possessed photos of similar victimized children on his cell phone, according to the charges. Those images allegedly included children under the age of 12.
If convicted, Malone faces up to 20 in prison as well as a possible $250,000 maximum fine.
Homeland Security Investigations and the Texas Attorney General’s Office - Internet Crimes Against Children Task Force conducted the investigation.
Assistant U.S. Attorney Attorneys Molly K. Smith and Dennis E. Robinson are prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Former bookkeeper sentenced to prison for embezzlementRead the Press Release
ATLANTA – Alice Sue Smith has been sentenced for stealing from her employer while working as the bookkeeper and for filing false tax returns.
“When employees take advantage of their positions of trust to steal from small, family-owned businesses, real victims suffer serious financial harm,” said Acting U.S. Attorney Kurt R. Erskine. “As in this case, there are real and significant consequences for employees who are caught stealing from their employers.”
“Smith let her greed blind her to responsibilities her company entrusted her with,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “For that she will be held accountable.”
“This sentencing sends a clear message that stealing from your employer is not okay,” said Demetrius Hardeman, Assistant Special Agent in Charge, IRS CI Atlanta Field Office. “No one should ever feel they have the right to take what is not theirs. IRS-CI will continue to work diligently, in concert with the FBI and US Attorney’s Office, to ensure everyone pays their fair share.”
According to Acting U.S. Attorney Erskine, the criminal information, and other information presented in court: Alice Sue Smith was the bookkeeper and office manager at Chattanooga Coin, Inc. (“CCI”) from 2004 to 2018. From 2009 to 2018, Smith forged the signatures of CCI’s owners on approximately 1,400 checks that she then cashed. Smith also created fictitious check stubs in CCI’s financial records to cover up her fraud. In total, she stole approximately $1.24 million from CCI over nearly a decade. Smith also failed to report the embezzled funds and other legitimate income on her income tax returns.
Alice Sue Smith, 63, of Fort Oglethorpe, Georgia, has been sentenced to three years, seven months in prison to be followed by three years of supervised release. The Court also ordered her to pay restitution to CCI and the United States of approximately $1.48 million. She was convicted of wire fraud and filing a false tax return on February 11, 2021, after pleading guilty.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation, with assistance from the Rossville, Georgia Police Department.
Assistant U.S. Attorneys Michael Qin and Russell Phillips prosecuted this case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Nixa School Official Pleads Guilty to Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A former assistant principal at Nixa Junior High School in Nixa, Missouri, pleaded guilty in federal court today to soliciting sexually explicit photos from a 13-year-old victim by posing online as a teen girl.
Colby Fronterhouse, 41, of Springfield, Mo., pleaded guilty before U.S. Chief Magistrate Judge David P. Rush to one count of receiving child pornography. Fronterhouse was employed as an assistant principal at the junior high school at the time of the offense; he was terminated on Feb. 8, 2021.
A Christian County sheriff’s deputy was contacted by a 13-year-old child victim and his father in September 2020. The child victim, identified in court documents as “John Doe,” had been engaging in a series of text messages for approximately a week with Fronterhouse, who posed as a 14-year-old girl. Fronterhouse, posing as a 14-year-old, encouraged John Doe to transmit sexually explicit images of himself to Fronterhouse, made specific requests for poses or types of images, and had sexually explicit conversations with John Doe.
Investigators learned that the phone used by Fronterhouse was a burner phone number with a Voice Over Internet Protocol (VoIP) account, but they were able to trace the account to Fronterhouse. Officers executed a search warrant at Fronterhouse’s residence on Jan. 26, 2021, and he was arrested. Investigators seized Fronterhouse’s cell phone and found evidence linking his cell phone to the burner account. Investigators confirmed that Fronterhouse had access to the child victim’s cell phone number through school records.
Under federal statutes, Fronterhouse is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Stephanie L. Wan. It was investigated by Homeland Security Investigations, the Southwest Missouri Cyber Crimes Task Force, the Greene County, Mo., Sheriff’s Department, and the Christian County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Federal indictment unsealed alleging massive Muscogee County, Georgia fraud; former county clerk charged and in custodyRead the Press Release
COLUMBUS, Ga. – A federal grand jury has returned an indictment charging eight people, including the former Deputy Clerk of Muscogee County Court, with various criminal charges including bank fraud, wire fraud and interstate transportation of stolen property amounting to an alleged loss of nearly $500,000 to Muscogee County during an 11-month period in 2019.
Willie Demps, 63, of Phenix City, Alabama, is charged with one count conspiracy to commit bank fraud, 35 counts of wire fraud and 34 counts of interstate transportation of stolen property. If convicted, Demps faces a maximum sentence of 30 years on the conspiracy charge, a maximum sentence of 20 years on each of the wire fraud charges and a maximum sentence of ten years on each of the interstate transportation charges. Each count of conviction also carries a maximum of three years of supervised release and a maximum $250,000 fine. Demps’ initial appearance is scheduled for Tuesday, August 24, at 11 a.m. in Columbus federal court before U.S. Magistrate Judge Stephen Hyles.
Curtis Porch, 48, of Columbus, is charged with conspiracy to commit bank fraud, wire fraud, and interstate transportation of stolen property. If convicted, Porch faces the same potential penalties as co-defendant Demps.
Dereen Porch, 43, of Columbus, is charged with conspiracy to commit bank fraud. If convicted, Porch faces a maximum sentence of 30 years in prison, three years of supervised release and a maximum $250,000 fine.
Terry McBride, 43, of Smiths Station, Alabama, is charged with conspiracy to commit bank fraud, 31 counts of wire fraud and 31 counts of transportation of stolen property. If convicted, McBride faces the same potential penalties as co-defendant Demps.
Samuel Cole, 72, of Columbus, is charged with conspiracy to commit bank fraud, two counts wire fraud, two counts transportation of stolen property and false statements. If convicted, Cole faces the same potential penalties as co-defendant Demps, plus a maximum of five years, a $250,000 fine and three years of supervised release on the false statements charge.
Rosalee Bassi, 65, of Lawrenceville, Georgia, is charged with one count conspiracy to commit bank fraud. If convicted, Bassi faces the same potential penalties as co-defendant Dereen Porch.
Lamarcus Palmer, 34, of Smiths Station, Alabama, is charged with conspiracy to commit bank fraud and wire fraud. If convicted, Palmer faces a maximum of 30 years on the conspiracy charge, a $250,000 fine and three years of supervised release. If convicted of wire fraud, he faces a maximum of twenty years imprisonment, a $250,000 fine and three years of supervised release.
George Cook, 33, of Columbus, is charged with conspiracy to commit bank fraud. If convicted, he faces the same potential penalties as co-defendant Dereen Porch.
According to the now unsealed indictment, handed down by a federal grand jury on Wednesday, August 11, and unsealed on Wednesday, August 18, Demps, who worked for the Muscogee County Clerk for approximately 30 years, supervised money deposits received by the Clerk’s Office. The Clerk’s Office received money from fines and condemnations, and payments were frequently made in cash. Most of the cash was given to Demps, who had the responsibility of depositing Muscogee County funds. Demps is accused of making Clerk of Superior Court checks payable to various co-defendants in dollar amounts he filled in and endorsed. Demps would allegedly meet various co-defendants in locations away from his place of business at the Clerk’s Office to give the illicit checks to them to be cashed at banks in Columbus and in nearby Alabama. The co-defendants are accused of cashing the checks and returning the money to Demps, who would allegedly give the participating co-defendant a portion of the money. It is alleged that during the time period between January 2019 to November 2019, Demps and his co-defendants cashed at least $467,331 in checks stolen from the Muscogee County Clerk’s Office.
FBI, IRS and the Columbus Police Department are investigating the case.
Assistant U.S. Attorney Mel Hyde 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.
Federal Prosecutor Receives Prestigious Legal AwardRead the Press Release
KANSAS CITY, Mo. – Jeffrey Q. McCarther, Assistant U.S. Attorney for the Western District of Missouri, has been named a recipient of the prestigious Lon O. Hocker Award in recognition of his outstanding trial work in federal court.
“Jeff McCarther has been on the front line of our effort to make our community safer by getting violent criminals off the street and behind bars,” said Acting U.S. Attorney Teresa Moore. “Jeff has worked diligently to aggressively prosecute drug traffickers, armed robbers, kidnappers, carjackers, felons and others who illegally possess firearms. Jeff confronts some of the most dangerous criminals in court and brings them to justice. Combatting violent crime is one of our highest priorities, and his dedication and professionalism have earned the respect of the legal community.”
Each year, the Missouri Bar recognizes one attorney under the age of 40 in the Kansas City, Mo., area who exemplifies the qualities of a trial lawyer, including professionalism and high ethical conduct. Awards are also presented to one attorney in the St. Louis, Mo., area and to one attorney in the remaining counties. The Missouri Bar Foundation describes the Lon O. Hocker Award recipients: “The recipients are chosen based on their demonstrated balance between zealousness and honor, strength and courtesy, and confidence and respect. They must possess a quick wit in the courtroom that is supported by meticulous preparation in the pursuit of truth.”
McCarther has been a federal prosecutor for seven years in the Violent Crime and Drug Trafficking Unit of the U.S. Attorney’s Office. He prosecutes felony crimes related to robbery, kidnapping, carjacking, drug trafficking conspiracies, the illegal possession of firearms, as well as other violent and drug-related crimes. Since joining the U.S. Attorney’s Office in 2014, McCarther has successfully prosecuted 18 jury trials, as well as three bench trials.
For example, in 2019 McCarther earned convictions against two defendants who were indicted for kidnapping, robbing, and terrorizing three women during a violent, hours-long crime spree. The victims were threatened with a sawed-off shotgun as their kidnappers forced them to withdraw money from ATMs. One of the victims escaped when police officers recognized the stolen car in which she was being held. The others were able to flee from their captors. The jury deliberated less than two hours before returning guilty verdicts on 17 charges apiece. One defendant was later sentenced as an armed career criminal and “three strikes” violent felon to four consecutive terms of life in federal prison without parole. The other defendant was sentenced to 60 years in federal prison without parole.
In another case, a defendant was convicted at trial for illegally possessing the firearm he had used to shoot his girlfriend. He was found guilty of being a felon in possession of a firearm and sentenced to 17 years in federal prison without parole.
Another defendant was sentenced to 10 years in federal prison without parole after being convicted at trial of participating in a conspiracy to manufacture methamphetamine. His co-defendants, who pleaded guilty, possessed 80,000 pseudoephedrine pills at the time of their arrest – enough to produce approximately three kilograms of pure methamphetamine with a street value of more than $100,000.
McCarther was born, raised, and currently resides in Kansas City, Mo. He is a 2005 graduate of Northwestern University in Evanston, Illinois, and a 2009 graduate of the University of Missouri School of Law in Columbia, Mo. Prior to joining the U.S. Attorney’s Office, McCarther was an Assistant Prosecuting Attorney at the Jackson County, Mo., Prosecutor’s Office and, before that, a civil attorney at a top national law firm.
Lon O. Hocker Award
Mary B. Hocker established the Lon O. Hocker Award in 1954 in memory of her late husband, an outstanding trial lawyer who practiced in St. Louis for more than 50 years. The Missouri Bar Foundation gives the award annually to lawyers who have demonstrated unusual proficiency in the art of trial advocacy.
Traditionally, the Missouri Bar Foundation presents these awards at its Awards Luncheon during The Missouri Bar Annual Meeting. The Annual Meeting this year will be held virtually as it was last year. Nominations were taken from throughout the state by previous Lon O. Hocker Award winners, the Missouri Bar president, leaders, or members-at-large. The review committee was comprised of three or more federal or state judges.
Federal Jury Convicts Stephens County Man of Abusive Sexual Contact with a Child Under 12Read the Press Release
OKLAHOMA CITY – Last week, a federal jury convicted LAWRENCE JUNIOR LOFTIS, 65, of Stephens County, of abusive sexual contact with a child under 12 years old, announced Acting U.S. Attorney Robert J. Troester.
On April 20, 2021, a federal grand jury returned a three-count Indictment against Loftis, charging him with aggravated sexual abuse and abusive sexual contact with a child under 12 years old.
On August 13, 2021, after a four-day trial, a federal jury found Loftis guilty of abusive sexual contact with a child under 12 years old. Evidence at trial showed that, between early 2018 and late 2019, Loftis knowingly engaged in and caused sexual contact with a child, who was then eight to ten years old. The jury heard testimony from witnesses who had helped bring the sexual abuse to light, from the child victim, and from the Stephens County Sheriff’s Office investigator who interviewed Loftis. Finally, the jury heard the testimony of another victim who had been sexually abused by Loftis for many years when that person was a child. The jury did not reach a verdict on the two counts charging Loftis with aggravated sexual abuse of a child.
At sentencing, Loftis faces a maximum penalty of life in federal prison, restitution to the child victim, and a fine of up to $5,000. Loftis is in federal custody pending sentencing, which is expected in approximately 90 days.
Federal jurisdiction existed in this case because the crime was committed in Indian Country and Loftis was Native American.
This case is the result of investigations by the Federal Bureau of Investigation – Oklahoma City Field Division and the Stephens County Sheriff’s Office. Assistant U.S. Attorneys Bow Bottomly and Brandon Hale prosecuted the case.
This case is part of Project Safe Childhood, a nationwide initiative by the Department of Justice (DOJ) to combat child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Reference is made to court filings for further information.
FCI Schuylkill Inmates Sentenced for Possession of Contraband in PrisonRead the Press Release
WILKES-BARRE – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on August 18, 2021, Jose Martinez, age 54, and David Montserrate Torres, age 33, both inmates at the Federal Correctional Institute-Schuylkill, Minersville, Pennsylvania, were sentenced by U.S. Magistrate Judge Joseph F. Saporito, Jr. to one month imprisonment following their separate convictions for possession of contraband in prison. Both sentences are to be served consecutive to the inmates’ current sentences.
According to Acting United States Attorney Bruce D. Brandler, both Martinez and Montserrate Torres were inmates within the satellite camp at FCI-Schuylkill when they were found to be in possession of prohibited objects including a cellphone, charging cable, charging adapter, and a pair of earbuds on July 18, 2021.
The case was investigated by Bureau of Prisons. Assistant U.S. Attorneys Jeffrey St. John and James M. Buchanan prosecuted the cases.
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Extradición histórica lleva a miembros del ELN a Texas por narcoterrorismo y distribución internacional de cocaínaRead the Press Release
HOUSTON – Dos presuntos miembros de una de las organizaciones delictivas transnacionales más temerarias tendrán una audiencia inicial en una corte federal de EE. UU. por cargos de narcoterrorismo y distribución de cocaína en cantidades superiores a un kilogramo desde Colombia.
Es la primera vez que se extradita a Estados Unidos a presuntos miembros del Ejército de Liberación Nacional (ELN) en los casi 60 años de existencia de la organización para enfrentar cargos por narcoterrorismo y narcotráfico. El ELN es una organización guerrillera colombiana que fue designada oficialmente como organización terrorista extranjera el 8 de octubre de 1997. Sigue operando como una de las organizaciones de narcoterrorismo más extensas del mundo.
Yamit Picón-Rodríguez, alias Choncha, de 36 años, y Henry Trigos-Celón, alias Moncho Picada, de 44, fueron extraditados y llegaron a Houston por vía aérea hace instantes. Está previsto que comparezcan ante el juez federal Sam Sheldon mañana a las 10 a.m.
Un jurado federal de acusación dispuso el procesamiento de Picón-Rodríguez, Trigos-Celón y otras personas el 12 de febrero de 2020. Las autoridades colombianas aprehendieron a estas personas a pedido de Estados Unidos en septiembre de 2020.
Picón-Rodríguez está acusado de conspiración con fines de distribución internacional de cocaína junto a otras cinco personas. A los seis se los acusó también de distribución de sustancia controlada y de realizar actos orientados a proporcionar elementos de valor pecuniario, o a sabiendas de que serían proporcionados, a una persona o una organización que participa en terrorismo o actividades terroristas (narcoterrorismo).
Según la acusación, Picón-Rodríguez, Trigos-Celón y otras personas estuvieron implicadas en una conspiración por un lapso de 20 años para distribuir cocaína desde Colombia hacia Estados Unidos con la intención de proporcionar apoyo económico al ELN o a sabiendas de que tal apoyo se brindaría.
A comienzos de 2019, Trigos-Celón y otras cuatro personas presuntamente participaron en la distribución de cerca de 30 kilogramos de cocaína en Colombia, con conocimiento de que se importaría a Estados Unidos.
Villegas-Palomino, alias Carlos El Puerco, de 38 años, presunto líder del ELN, también fue acusado pero todavía no ha sido detenido. Se lo considera fugitivo, al igual que Jaime Miguel Picón-Rodríguez, alias Chencho y Jairo, de 38 años, y Diomedes Barbosa-Montaño, alias El Burro, de 38. Se ha librado una orden para su detención. Se pide a quienes tengan información sobre sus paraderos que se contacten con el FBI llamando al 1-800-CALL-FBI o enviando cualquier dato valioso a tips.fbi.gov. El Departamento de Estado de EE. UU., a través de su programa de recompensas relacionadas con narcóticos, ofrece hasta $ 5 millones a cambio de información que posibilite que se detenga o condene a Villegas-Palomino.
Las Divisiones de Houston del FBI y de la Administración para el Control de Drogas (Drug Enforcement Administration, DEA) llevaron a cabo la investigación como parte de los Grupos de Tareas contra la Narcodelincuencia Organizada (Organized Crime Drug Enforcement Task Forces, OCDETF). Los agentes del FBI y la DEA en Bogotá brindaron un apoyo sustancial, al igual que la División de Operaciones Especiales, un organismo de carácter interinstitucional dentro del ámbito del Departamento de Justicia (DOJ), incluidos abogados asignados desde la Sección de Narcóticos y Drogas Peligrosas, así como agregados judiciales del DOJ en Colombia, con la cooperación de las autoridades colombianas. También prestaron asistencia esencial la Oficina de Asuntos Internacionales del DOJ, el Departamento de Policía de Houston, el Comando Sur de EE. UU. y varios socios internacionales, entre ellos el Ejército, la Policía Nacional, la Fiscalía General de la Nación y el Cuerpo Técnico de Investigación de Colombia.
La operación, que recibió el nombre de Relámpago de Catatumbo (Catatumbo Lightning), forma parte de una iniciativa del Grupo de Ataque de OCDETF que prevé la conformación de equipos de tareas interinstitucionales permanentes que trabajen codo a codo en un mismo lugar. Este modelo de emplazamiento conjunto permite que agentes de distintos organismos colaboren en operaciones basadas en datos de inteligencia en múltiples jurisdicciones para interceptar y desarticular el accionar de los narcotraficantes, responsables de blanqueo de capitales, pandillas y organizaciones delictivas transnacionales de mayor envergadura. La misión específica del Grupo de Ataque de Houston es interceptar, desbaratar y enjuiciar a las organizaciones de narcotráfico que han sido designadas como Organización Identificada de Prioridad Consolidada u Organización Identificada de Prioridad Regional y sus organizaciones afiliadas que tienen impacto en Houston y el sur de Texas.
Los fiscales federales auxiliares Casey N. MacDonald y Aníbal Alaniz del Distrito Sur de Texas impulsan la acusación.
El escrito de procesamiento es una acusación formal de una conducta delictiva y no constituye prueba de esta. Se presume la inocencia de los acusados hasta tanto se demuestre su culpabilidad sin lugar a duda racional en un tribunal de justicia.
Essex County Man Indicted for Gunpoint Robbery of Cell Phone StoreRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was indicted by a federal grand jury today for his role in a January 2021 gunpoint robbery of a cell phone store in East Orange, New Jersey, Acting U.S. Attorney Rachael A. Honig announced.
Kenneth Graham, 49, of Newark, is charged by indictment with one count of Hobbs Act Robbery and one count of using, carrying, and brandishing a firearm during and in relation to a crime of violence. He will be arraigned at a date to be determined.
According to documents filed in this case and statements made in court:
On Jan. 18, 2021, Graham was in a cell phone store when he drew a gun and pointed it at a store employee. Graham ordered the employee to place several cell phones from the display case and cash from the register into his bag. Video surveillance footage near the store showed Graham enter a black Nissan Altima after the robbery and drive away. Witnesses confirmed that Graham was the person entering the Nissan Altima after robbing the store.
The count of using, carrying, and brandishing a firearm during a crime of violence carries a maximum potential penalty of life in prison. It also carries a mandatory minimum sentence of 25 years of prison in this case because Graham was previously convicted of the same crime in 2007 in connection with three gunpoint bank robberies in New Jersey. The sentence on this charge must be consecutive to any other sentence imposed. The Hobbs Act robbery charge carries a statutory maximum of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., and members of the East Orange Police Department, under the direction of Chief Phylis Bindi, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Benjamin Levin of the Violent Crimes Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Erie Man Pleads to Drug and Gun Charges following PSP InvestigationRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, pleaded guilty in federal court to a charge of violating federal drug laws, Acting United States Attorney Stephen R. Kaufman announced today.
Chancelor Amir Jordan, 37, pleaded guilty to one count before Senior United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that on or about February 4, 2020, Jordan possessed with intent to distribute more than 30 grams of fentanyl. The court was advised that Jordan also possessed a 9mm Taurus semi-automatic handgun, ammunition, cash, and a press used for packaging controlled substances.
Judge Cercone scheduled sentencing for December 13, 2021 at 1:00 p.m. The law provides for a total sentence of 30 years in prison, a fine of $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul S. Sellers is prosecuting this case on behalf of the government.
The Pennsylvania State Police conducted the investigation that led to the prosecution of Jordan.
Eleven Indicted for Distribution of Heroin Across Wasatch FrontRead the Press Release
SALT LAKE CITY – Eleven members of a Wasatch Front heroin distribution ring face federal charges for distributing heroin in Utah and Idaho in an indictment unsealed Monday in federal court.
The indictment is based on a multi-month wiretap investigation into a drug trafficking organization that conspired to distribute multiple kilograms of heroin along the Wasatch Front, including Utah County, Salt Lake County, Tooele County, and Davis County, and into Idaho. During the investigation, close to 2 kilograms of heroin were seized, with multiple kilograms running through the organization since at least December of 2020. Five firearms, two of which are stolen, were also seized during the investigation.
During the approximately six-month investigation, agents completed 13 controlled purchases of heroin from members of the distribution ring. The organization in Utah operated as a cell of a much larger network of drug trafficking activity that originated in Mexico and that includes cells in Colorado and other states.
Antonio Giron-Fernandez, 39, of Orem, who is alleged to be the leader of the Utah distribution network, is charged with conspiracy to distribute heroin, distribution of heroin, and illegally reentering the United States after being removed. Also charged in the indictment are: Fernando Antonio Medina-Garcia, 23, of Orem, who is charged with conspiracy to distribute heroin, distribution of heroin, and possession of heroin with the intent to distribute; Juan Carlos Heredia-Perez, 21, of Orem, who is charged with conspiracy to distribute heroin; Jesus Alberto Zarate-Pacheco, 26, of Orem, who is charged with conspiracy to distribute heroin and the possession of heroin with the intent to distribute; Eric Ryan Francis, 35, of West Valley City, who is charged with conspiracy to distribute heroin, possession of heroin with the intent to distribute, and being a convicted felon in possession of a firearm; Michael Shane Ellison, 47, of Provo, who is charged with conspiracy to distribute heroin; Jacob Elizardo Aragon, 28, of Cottonwood Heights, who is charged with conspiracy to distribute heroin, possession of heroin with the intent to distribute, and for being a user of controlled substances in possession of a firearm; Marc Anthony Pagni, 33 of Salt Lake City, who is charged with conspiracy to distribute heroin; Christina Ann Chance, 40, of Nampa, Idaho, who is charged with conspiracy to distribute heroin and the possession of heroin with the intent to distribute; Kimberly Jo Hancock, 56, of Eagle, Idaho, who is charged with conspiracy to distribute heroin and the possession of heroin with the intent to distribute; and, Jonathan Christopher McGuire, 41, of West Valley City, who is charged with conspiracy to distribute heroin.
Assistant U.S. Attorneys from the Utah U.S. Attorney’s Office are prosecting the case. Special Agents from FBI’s Safe Streets Task Force, including detectives from the West Valley City Police Department, along with detectives from the Davis Metro Narcotics Task Force and the Layton City Police Department, conducted the investigation.
Indictments are not findings of guilt. Defendants charged in indictments are presumed innocent unless or until proven guilty in court.
East Bay Man Sentenced to over Six Years in Prison for Possessing Child PornographyRead the Press Release
OAKLAND – Shawn Jamison Prichard was sentenced today to 78 months in prison, for possession of child pornography, announced Acting United States Attorney Stephanie M. Hinds and Homeland Security Investigations (HSI) Special Agent in Charge Tatum King. The sentence was handed down by the Honorable Haywood S. Gilliam, Jr., U.S. District Judge.
Prichard, 42, of Antioch, pleaded guilty to the charge on March 31, 2021. According to the plea agreement, Prichard admitted that he knew he was in possession of sexually explicit images of children. The images included videos and images showing prepubescent children engaged in sexually explicit conduct as well as images of sadistic or masochistic depictions of children engaged in sexually explicit conduct and visual depictions of sexually explicit conduct perpetrated by adults on infants or toddlers. Prichard admitted to possessing more than 600 images of child pornography. Documents filed by the government in the case establish that an investigation into Prichard began after the National Center for Missing and Exploited Children received a Cybertip from a social media company. At the time the Cybertip was made, Prichard worked as a registered nurse for a hospital in the East Bay.
On February 12, 2021, Prichard was charged by information with a single count of possession of child pornography, in violation of 18 U.S.C. §§ 2252(a)(4)(B) and (b)(2). He pleaded guilty to the count.
In addition to the prison term, Judge Gilliam also sentenced the defendant to a five-year term of supervised release and scheduled a hearing for October 20, 2021, to consider issues regarding restitution. Judge Gilliam ordered the defendant to begin serving his prison term on or before September 29, 2021.
Assistant U.S. Attorney Jonathan U. Lee is prosecuting the case with the assistance of Kay Konopaske, Kathleen Turner, and Leeya Kekona. The prosecution is the result of an investigation by HSI, the Silicon Valley Internet Crimes Against Children Task Force, the Contra Costa County Sheriff’s Office.
Eagle Butte Woman Indicted for Assault and Drug ChargesRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that an Eagle Butte, South Dakota, woman has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer and two counts of Possession with Intent to Distribute a Controlled Substance.
Frances Sioux Montero, age 40, was indicted on August 10, 2021. She appeared before U.S. Magistrate Judge Mark A. Moreno on August 17, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 20 years in federal prison and/or a $1,000,000 fine, three years up to life of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on May 12, 2021, and June 1, 2021, Montero knowingly and intentionally possessed methamphetamine in Eagle Butte with intent to distribute the drug. Further, on June 1, Montero resisted a lawful arrest and caused the arresting officer to cut his finger when they fell to the ground and a methamphetamine pipe Montero had been holding shattered.
The charges are merely accusations and Montero is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Montero was released on bond pending trial. A trial date has not been set.
Dutch National Affiliated with ‘Bugaloo Bois’ Sentenced for Illegal Possession of a FirearmRead the Press Release
ABINGDON, Va.– A Dutch national and member of the Bugaloo Bois, was sentenced today to time served, which included five and a half months in prison, for illegally possessing a firearm while being unlawfully present in the United States.
According to court documents, Jaap Willem Lijbers, 27, was living in the United States on an I-94 Visa that expired on May 20, 2014. A review of immigration records showed that Lijbers never applied for adjustment or readmission. Lijbers pleaded guilty in April to one count of possessing a firearm while being unlawfully present in the United States.
Lijbers, who was residing in Raven, Va., frequently coordinated and communicated online with members of the Bugaloo Bois, a loosely connected group of individuals espousing violent anti-government sentiment. During some of these interactions, court documents allege that Lijbers encouraged other members of the Bugaloo Bois group to attend political rallies and commit acts of violence, to include taking over government buildings. Lijbers also encouraged others to participate in violent conduct against law enforcement officers in a “pig roast.”
Acting U.S. Attorney Daniel P. Bubar of the Western District of Virginia and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Division, made the announcement today.
The investigation of the case was conducted by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Department of Homeland Security (DHS) Homeland Security Investigations (HSI).
Assistant United States Attorneys Christopher Kavanaugh and Randy Ramseyer prosecuted the case for the United States.
District Woman Sentenced to Two Years in Prison for Stealing over $364,000 from EmployerRead the Press Release
WASHINGTON – Jessica J. Lucas, 43, of Washington, D.C., was sentenced today to two years in prison for committing a wire fraud scheme against her employer, a company that owns restaurants in the Washington metropolitan area.
The announcement was made by Acting U.S. Attorney Channing D. Phillips, Acting Special Agent in Charge of the FBI Washington Field Office Criminal Division Robert Bornstein, and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Lucas pled guilty in February 2020 to one count of wire fraud in the U.S. District Court for the District of Columbia. Today, she was sentenced by the Honorable Thomas F. Hogan. In addition to her prison term, the Court ordered Lucas to pay restitution in the amount $364,004, as well as a forfeiture money judgment in the amount of $364,004. Following her prison term, she will be placed on three years of supervised release.
According to court papers, beginning on or about Jan. 1, 2015, and continuing through on or about Feb. 28, 2018, Lucas, who was employed as bookkeeper and cash handler for a restaurant in downtown Washington, implemented a scheme to steal from her employer. Lucas was responsible for ensuring that the restaurant had sufficient cash in its safe and bars to conduct the restaurant’s business of serving food and beverages to customers.
As part of her employment, Lucas frequently ordered cash from the company’s financial institution in order for the restaurant to have a “cash fund,” which was supposed to be used to provide change to customers who paid in cash rather than by credit card. As part of her scheme, Lucas regularly ordered more cash than was needed for operation of the restaurant. Lucas then stole a portion of the cash ordered and deposited the cash into her personal bank accounts. In an effort to conceal her theft from her employer, Lucas falsified monthly “change fund reconciliation reports” that she sent to company management in which she reported that there was more cash on hand than was actually in the safe.
In announcing the sentence, Acting U.S. Attorney Phillips, Special Agent in Charge Robert Bornstein and Chief Contee commended the work performed by those who investigated the case from the FBI’s Washington Field Office and the MPD. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys David Gorman and Diane Lucas, who prosecuted the case with assistance from Paralegal Specialist Chad Byron, and former Paralegal Specialist C. Rosalind Pressley.
Distributor of deadly fentanyl pills sentenced to 7 years in prisonRead the Press Release
Seattle – A 23-year-old Mount Vernon, Washington, woman was sentenced today in U.S. District Court in Seattle to 7 years in prison for conspiracy to distribute fentanyl, announced Acting U.S. Attorney Tessa M. Gorman. Rosaliana Lopez-Rodriguez sold counterfeit oxycodone pills tainted with fentanyl in Skagit and Whatcom Counties. The pills were connected to at least two overdoses, including the overdose death of a Bellingham 17-year-old. At the sentencing hearing Chief U.S. District Judge Ricardo S. Martinez urged the friends and loved ones of the victim and the defendant to spread the word about the dangers of fentanyl. “Think what you can do to keep your family and friends as safe as you possibly can,” the Chief Judge said.
“This defendant continued to sell deadly fentanyl pills to a teenager, even after learning that the teenager’s friend almost died from an overdose,” said Acting U.S. Attorney Gorman. “Overdose deaths in this country are at an all-time high from fentanyl. Those who sell it with such a casual disregard for human life need to face significant sanctions.”
Lopez-Rodriguez and her supplier, 22-year-old Jiovanni Nunez, were arrested in November and December 2019 after an investigation to track down the source of the deadly pills. Both defendants have been in custody since their arrests.
According to records filed in the case, a family member found the 17-year-old victim unresponsive on November 9, 2019. Despite efforts of emergency responders to resuscitate him, the victim died; his cause of death was later determined to be fentanyl overdose. Investigators found a whole and a partial pill near the 17-year-old victim. These pills were designed to look like oxycodone 30-milligram pills, with “M” and “30” stamped on them. But they were fakes tainted with fentanyl. Similar pills have been linked to other overdose deaths throughout the Puget Sound region. In fact, a friend of the 17-year-old victim nearly died after smoking one of the pills on November 1, 2019. Lopez-Rodriguez knew of that near-fatal overdose when she sold the 17-year-old victim more pills on November 9, 2019.
As part of her plea agreement, Lopez-Rodriguez also admitted selling an undercover law-enforcement officer fentanyl pills, which Lopez-Rodriguez stated she had received from Jiovanni Nunez. In addition, Lopez-Rodriguez admitted that during this investigation, law enforcement served court-authorized search warrants at each defendant’s residence. At Lopez-Rodriguez’s residence, in her bedroom, law enforcement found two and a half fentanyl pills. At the co-conspirator’s residence, law enforcement found a safe containing hundreds of fake oxycodone pills that matched the appearance of the fentanyl-laced pills linked to the fatal overdose. Lopez-Rodriguez admitted that Jiovanni Nunez had provided her with the pills that killed the Bellingham 17-year-old.
The victim’s sister told the court at sentencing that she is haunted by the memory of finding her brother’s body, and she said that Lopez-Rodriguez had shown “blatant disregard for human life.” The victim’s mother described the pain she lives with every day. She expressed her anger at the defendant for selling the pills that killed her son and said, “That’s all his life was to her, a few bucks.”
Jiovanni Nunez is scheduled for sentencing October 1, 2021.
The case is being investigated by the Drug Enforcement Administration (DEA); the Whatcom County Sheriff’s Office; the Skagit County Interlocal Drug Enforcement Unit; and the Whatcom County Drug and Gang Task Force, which includes members of the Whatcom County Sheriff’s Office, Bellingham Police Department, U.S. Customs and Border Protection, and Homeland Security Investigations. The case is being prosecuted by Assistant United States Attorney Jonas Lerman.
Des Moines Woman Sentenced to 304 Months in Prison for Hate CrimesRead the Press Release
Nicole Poole Franklin attempted to kill two children because of their race and national origin
DES MOINES, IA – Nicole Poole Franklin, age 43, of Des Moines, was sentenced to 304 months in prison by United States District Court Judge Stephanie M. Rose after pleading guilty to two hate crime charges for attempting to kill two minors because of their race and national origin. The federal sentence will run concurrently with the 25-year sentence imposed in the Iowa District Court for Polk County on May 28, 2021, for two counts of attempted murder. Poole Franklin was ordered to serve five years of supervised release to follow her prison term and pay a $200 special assessment to the Crime Victims’ Fund.
On the afternoon of December 9, 2019, Poole Franklin drove her Jeep Grand Cherokee on Creston Avenue in Des Moines, where the first child-victim and a minor family member were walking on the sidewalk. Upon seeing the children and believing the victim was of Middle Eastern or African descent, Poole Franklin intentionally drove her vehicle over the curb, striking one of them. She then drove away from the scene. The child victim suffered cuts, bruising, and swelling. Poole Franklin later stated she believed the child was “ISIS” and was going to take her out. Approximately 30 minutes later, Poole Franklin drove her vehicle near Indian Hills Junior High School in Clive, where the second child-victim was walking on the sidewalk. Poole Franklin, drove her Jeep over the curb and struck the victim, causing serious injury, including a concussion, bruises, and cuts. Poole Franklin later told law enforcement that she believed the minor victim was Hispanic, and was “takin over . . . our homes, and our jobs,” and “wasn’t supposed to be in our country.” Poole Franklin again left the scene but was apprehended by law enforcement later that day.
Acting Southern District of Iowa United States Attorney Richard D. Westphal wrote in his sentencing memorandum to the district court, “Nothing can be more devastating to the American dream of equal rights than the actions of Poole Franklin on a hate filled December 9, 2019, as she callously attempted to run over and kill a 12 year old boy, and a 14 year old girl. Two minors who had done nothing wrong other than innocently walk on a street, and happen to be of a different race and skin color from Poole Franklin. Her actions temporarily shattered, but did not permanently defeat this dream. Because these two courageous victims, and their amazing families, continue to epitomize the hopes of what our society can be. Holding Poole Franklin accountable, not only for her intentional actions, but for the malicious beliefs behind them, is what our justice system should be, and a must to provide just punishment, afford adequate deterrence, and protect the public from further crimes by this defendant.”
Following today’s sentencing, FBI Omaha Special Agent in Charge Eugene Kowel stated, “Nicole Poole Franklin committed a despicable crime. She targeted and seriously injured two children because of the color of their skin. FBI Omaha will continue to work closely with our law enforcement partners to investigate hate crimes and seek justice for the victims. We encourage everyone to report such crimes to the FBI.”
This case was investigated by the Federal Bureau of Investigation, the Des Moines Police Department, the Clive Police Department, the West Des Moines Police Department, and the Polk County Attorney’s Office. The United States Attorney’s Office for the Southern District of Iowa, in conjunction with the Department of Justice-Civil Rights Division prosecuted the case.
Denver Man Sentenced for Mail Theft, Bank Fraud, and Identity TheftRead the Press Release
DENVER - Cory Allen Snyder, 35, of Denver, was sentenced Tuesday to 34 months in federal prison, followed by 5 years of supervised release, after being convicted of mail theft, bank fraud, and aggravated identity theft.
Snyder conducted a series of post office (PO) box thefts between November 2018 and March 2019 from United States Postal Service (USPS) facilities across the Front Range. The U.S. Postal Inspection Service (USPIS) received approximately 50 reports of break-ins at postal facilities that Snyder was believed to be responsible for. Using personally identifiable information obtained from stolen mail, Snyder opened a series of bank accounts in the names and identities of his mail theft victims, which he then deposited stolen checks which he modified to be payable to him. Postal Inspectors identified between $15,000 and $20,000 in fraudulent activity from multiple bank accounts.
”For months, Snyder preyed on victims who relied on the services of the USPS to securely transport their private information,” says Matt Kirsch, Acting U.S. Attorney. “This sentencing is a victory for the citizens of Colorado, who can trust that their mail is safe and secure.”
“Postal Inspectors never rest when seeking justice for mail theft victims, and this case brings to close a lengthy investigation that affected many victims across the Front Range,” said Ruth Mendonça, Inspector in Charge of the Denver Division of the U.S. Postal Inspection Service. “When mail thieves get prison time, Postal Inspectors uphold their mission to protect the U.S. Mail, and the public knows they can trust the U.S. Postal Service to safely transmit their important information,” said Mendonça.
Snyder was sentenced Tuesday August 17, 2021 by U.S. District Court Judge Daniel D. Domenico after pleading guilty on May 25, 2021.
This case was initiated by the U.S. Postal Inspection Service, with assistance from the Weld County Sheriff’s Office, Douglas County Sheriff’s Office, Broomfield Police Department, and Aurora Police Department.
The case was prosecuted by the Violent Crime and Immigration Enforcement Section of the United States Attorney’s Office for the District of Colorado.
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Defendant Sentenced for Killing a Man and Injuring Another in a DUI CollisionRead the Press Release
A Tulsa man who drove intoxicated and caused a wreck that killed one man and seriously injured another was sentenced today in federal court.
“Redex Lester Jr. acted without regard for human life when he drove intoxicated on May 25, 2020, killing Wayne Thomas and injuring a second victim in a head-on collision. This conviction follows four previous state convictions for DUI. He will now spend the next 15 years in federal prison to account for this senseless crime,” said Acting U.S. Attorney Clint Johnson.
At today’s hearing, Chief U.S. District Judge John F. Heil III sentenced Redex Lester Jr., 54, to 15 years in federal prison followed by five years of supervised release.
Judge Heil reminded Lester that a life was lost and that such a tragedy couldn’t be fixed or changed. He urged Lester to take part in treatment programs while imprisoned so that a loss like this could never happen again. He further urged others not to make the same mistakes.
On April 8, 2021, Lester pleaded guilty to murder in the second degree in Indian Country and to assault resulting in serious bodily injury in Indian Country.
In the early evening of May 25, 2020, Lester Jr. drove intoxicated, exceeded the speed limit, and struck a vehicle head on. Wayne Thomas, a passenger in the other vehicle, died of his injuries three days following the crash. Another man suffered extensive, serious bodily injuries. At the time of the collision, Lester Jr. was driving on a suspended license and had a blood alcohol level of .239.
Previously, the defendant had been convicted by the state of DUI in 1992, 1994, 2005, and, again, in February 2020. For his February 2020 DUI conviction, Lester Jr. was sentenced to six months, suspended. The May 25, 2020, DUI collision and death occurred less than four months later while Lester was still on state supervision.
The FBI and Tulsa Police Department conducted the investigation. Assistant U.S. Attorneys Chantelle D. Dial and Christopher J. Nassar are prosecuting the case.
Convicted Felon on Parole Sentenced on Firearms and Fraud ChargesRead the Press Release
DETROIT – A Lathrup Village resident was sentenced today to 78 months in prison after having pleaded guilty to charges of being a felon in possession of a firearm, wire fraud, and aggravated identity theft, announced Acting United States Attorney Saima Mohsin.
Mohsin was joined in the announcement by Special Agent in Charge Timothy Waters, Federal Bureau of Investigation, Detroit Division.
William Henry Berry, 30, was sentenced this afternoon before United States District Court Judge Stephen J. Murphy in Detroit. Berry was also ordered to pay restitution in the amount of $52,536.00.
According to court records, Berry came to the attention of the FBI during an investigation into a series of shootings between rival gangs in the Detroit area. Phone records placed Berry’s cell phone at the scene of four of those shootings. During a subsequent search of Berry’s home agents recovered a loaded American Tactical Omni Hybrid outfitted with a “red dot” sight. Berry, who was on parole at the time, having previously been convicted of armed robbery, was prohibited from possessing a firearm. In addition, agents discovered cash, bank cards in several other peoples’ names, and a notebook with names, addresses, and social security numbers of identity theft victims. Further investigation revealed that Berry had used the stolen identities to obtain over $52,000 in fraudulent unemployment benefits.
“Berry committed these serious felonies while on state parole demonstrating his contempt for the law,” said acting United States Attorney Saima Mohsin. “As a parolee, Berry chose not to become a productive member of society, but instead returned to violent criminal activity, identity theft and fraud. There is no parole in the federal system. Today’s sentence protects the public by ensuring Berry will remain incarcerated for a significant period of time.”
“This case is an example of how violent criminals have diversified their illegal activities in an attempt to thwart enforcement efforts," said Timothy Waters, Special Agent in Charge of the FBI in Detroit. “The FBI and our law enforcement partners will continue to investigate and shut down criminal enterprises in any form."
Mohsin commended the work of the FBI in investigating this case. Assistant U.S. Attorney Andrew Picek prosecuted the case.
Convicted Felon Sentenced to Federal Prison for Possession with the Intent to Distribute MethamphetamineRead the Press Release
Jackson, TN – Dustin Via, 42, of Medina, Tennessee has been sentenced to 92 months in federal prison for possession with the intent to distribute over 5 grams of actual methamphetamine. Acting U.S. Attorney Joseph C. Murphy Jr., announced the sentence today.
According to information presented in court, on May 31, 2019, agents with the 28th Judicial Drug Task Force were completing the execution of an arrest warrant at Via's residence in Medina, Tennessee for his March 29, 2018 sale of six grams of methamphetamine to a confidential informant in Gibson County. During the search, agents found 34 grams of methamphetamine, a digital scale, and six ecstasy pills. The methamphetamine was sent to the DEA laboratory which confirmed that the substance was 100 % pure methamphetamine. Via had $780.oo on his person and he was subsequently placed into custody.
Via admitted to law enforcement that he did not have a legitimate job and that he sold methamphetamine for income. He further admitted that the $780.00 came from his sale of illegal narcotics. At the time of this offense, Via was also on state probation for two felony convictions for possession of methamphetamine with the intent to sell.
On May 6, 2021, Via pled guilty to the one-count indictment in this case charging him with possessing with the intent to distribute over 5 grams of actual methamphetamine, in violation of 21 U.S.C. 841(a)(1).
On August 11, 2021, U.S. District Judge J. Daniel Breen sentenced Via to 92 months' imprisonment, to be followed by four years of supervised release. There is no parole in the federal system.
This case was investigated by the West Tennessee Judicial Violent Crime & Drug Task Force, the Drug Enforcement Administration (DEA) and the Tennessee Bureau of Investigation (TBI).
Assistant U.S. Attorney Josh Morrow prosecuted this case on behalf of the government.
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Columbia Man Sentenced to Seven Years in Federal Prison for Exporting Stolen Vehicles to AfricaRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III, sentenced Asomah Maamah, age 49, of Columbia, Maryland to seven years in federal prison, followed by three years of supervised release, after Maamah pleaded guilty to federal charges of conspiracy to commit interstate foreign transport of motor vehicles and knowingly transporting stolen vehicles. Judge Russell III has also ordered Maamah to pay restitution in the amount of $195,281.20.
The sentence 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; Baltimore Port Director Adam Rottman of U.S. Customs and Border Protection; Colonel Kevin M. Anderson, Chief of the Maryland Transportation Authority Police; and Chief Lisa D. Myers of the Howard County Police Department.
According to his plea agreement, Maamah participated in the theft and exportation of at least 17 vehicles worth approximately $863,653. The members of the conspiracy fraudulently stole the vehicles directly from victims and rental facilities. After the arrangement for sale, vehicles were loaded into shipping containers that would then be exported to foreign destinations, most commonly, Africa. As part of the scheme to defraud, Maamah facilitated the creation of fraudulent paperwork to present to customs officials which misrepresented the true contents of the shipping containers. For example, in late 2018, Maamah was observed at the scene of a vehicle loading where a known stolen car was located. Maamah’s paperwork for the shipment falsely listed “Tutu Seth” as the exporter and listed the vehicle as a Cadillac when, in reality, the vehicle was a Range Rover.
On January 15, 2019, Maamah was approached by Howard County Police and agents from the Homeland Security Investigations (HSI) Border Enforcement Security Team (BEST) after he arrived at a surveilled location. In an interview with law enforcement, Maamah denied any knowledge or involvement in the exportation of stolen vehicles. He also claimed that company registered in his name had been used to ship vehicles without his permission and that he had not been involved with vehicle shipping for years.
As stated in his plea agreement, a review of Maamah’s personal email account revealed that Maamah arranged the shipment of stolen vehicles under the pseudonym “Tutu Seth” and often used his email to facilitate the creation of fraudulent paperwork.
A review of Maamah’s three cell phones revealed numerous photographs of stolen vehicles, including several stolen vehicles that were seized inside shipping containers. The phones also included messages relating to a recently interdicted container that contained two falsely declared stolen vehicles. Investigators also discovered a second email address that was used to communicate with a shipping company concerning the exportation of cars.
Maamah was arrested pursuant to a federal criminal complaint on March 4, 2020. At the time of his arrest, Maamah was found inside a car that had been fraudulently rented and was over-due. Although Maamah initially denied any criminal conduct or knowledge of stolen vehicles, he ultimately admitted to law enforcement that an associate informed him the vehicles previously shipped to Africa were stolen and that he knew the titles of the vehicles within the shipping containers did not match the paperwork given to the truck driver or the shipping company.
Acting United States Attorney Jonathan F. Lenzner praised the HSI, U.S. Customs and Border Protection, the Maryland Transportation Authority Police, and the Howard County Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Judson T. Mihok. who prosecuted the case.
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Career Offender Is Sentenced to 17 Years on Drug ChargesRead the Press Release
ASHEVILLE, N.C. – Chief U. S. District Judge Martin Reidinger handed down a lengthy sentence today to a Hendersonville, N.C., man convicted of trafficking cocaine, fentanyl, prescription pills and other narcotics in and around Henderson County, announced Acting U.S. Attorney William T. Stetzer.
On December 9, 2020, Eric Charles Butler, 57, pleaded guilty to two counts of possession with intent to distribute narcotics, for which he was charged separately by federal criminal indictments. Today, Judge Reidinger ordered Butler to serve 17 years in prison for each count of conviction, to be served concurrently, and to remain under court supervision for six years upon completion of the prison term. As a result of Butler’s multiple prior drug convictions, the Court sentenced him as a career offender.
Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Asheville Post of Duty, Sheriff Lowell S. Griffin of the Henderson County Sheriff’s Office (HCSO), and Chief Blair Myhand of the Hendersonville Police Department (HPD) join Acting U.S. Attorney Stetzer in making today’s announcement.
According to filed court documents and court records, on August 10, 2019, a Henderson County Sheriff’s Office deputy conducted a traffic stop after determining Butler was driving a vehicle with a revoked registration. Over the course of the traffic stop, Butler attempted to flee the scene on foot. Butler was apprehended shortly thereafter by two HCSO deputies, one of whom was deputy Ryan Hendrix. Deputy Hendrix was killed in the line of duty on September 10, 2020. Court records show that the deputies recovered from Butler’s person narcotics, including MDMA, methamphetamine, cocaine, and morphine, as well as digital scales and other drug paraphernalia, and over $6,800 in cash from his vehicle. Butler was charged with state drug charges and was released on bond.
On February 16, 2020, while Butler was on pretrial release on state offenses, an officer with the Hendersonville Police Department attempted to stop the vehicle Butler was driving for a traffic violation. Butler did not comply and sped away, in an attempt to evade the police. A vehicle pursuit followed and, when Butler’s vehicle became stuck on the road, Butler attempted to flee on foot through the nearby woods. Police officers ultimately located Butler and he was arrested. Over the course of the investigation into that incident, law enforcement recovered methamphetamine, Xanax, oxycodone, cocaine and fentanyl, which Butler possessed with the intent to distribute. Butler was charged with state charges for Trafficking in Meth and Fleeing to Elude Arrest in a Motor vehicle.
In May 2020, while Butler was still on pre-trial release on the aforementioned state offenses, law enforcement learned that Butler was continuing to traffic narcotics. On May 12, 2020, law enforcement located Butler driving a vehicle with a suspended license. When the officers attempted to stop Butler’s vehicle, Butler sped off and once again attempted to evade law enforcement. Butler was ultimately apprehended following a vehicle pursuit during which Butler drove recklessly through a busy residential area. Law enforcement were able to intercept Butler’s vehicle and he was ultimately apprehended. Over the course of the investigation, law enforcement recovered nearly half a kilogram of powdered cocaine, fentanyl, oxycodone pills, crack cocaine, and other drug paraphernalia.
Butler is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, Acting U.S. Attorney Stetzer commended the Henderson County Sheriff’s Office, the Hendersonville Police Department, and the DEA in Asheville for their investigation of this case.
Assistant U.S. Attorney Tom Kent, of the U.S. Attorney’s Office in Asheville, prosecuted the case.
California Man Sentenced to 96 Months for Methamphetamine PossessionRead the Press Release
Acting United States Attorney Jan Sharp announced that John Earl Beridon, 47, of Canyon Country, California, was sentenced today by United States District Judge Brian C. Buescher for Possessing with Intent to Distribute 50 grams or more of pure methamphetamine. Beridon received a sentence of 96 months’ imprisonment with a five-year term of supervised release to follow. There is no parole in the federal system.
On July 9, 2020, agents with the Drug Enforcement Administration were at the Federal Express facility in Ralston, Nebraska, when they seized a package with 392 grams of pure methamphetamine. The package was then delivered to the listed address where it was monitored until Beridon arrived and retrieved the package and was arrested. Further investigation established that Beridon was near the Federal Express store in California where the package was shipped from and flew out to Nebraska the day before the package was to arrive.
This case was investigated by the DEA and Nebraska State Patrol.
Brownsville woman sentenced for attempting to smuggle methRead the Press Release
BROWNSVILLE, Texas – A 21-year old local woman has been ordered to federal prison for possessing with intent to distribute 94.18 kilograms of meth, announced Acting U.S. Attorney Jennifer B. Lowery.
Jennifer Santamaria pleaded guilty May 13.
Today, U.S. District Judge Fernando Rodriguez Jr. ordered her to serve a 120-month sentence to be immediately followed by five years of supervised release. In handing down the sentence, Judge Rodriguez noted the seriousness of the offense.
On Jan. 22, Santamaria attempted to make entry into the United States through the Gateway International Bridge Port of Entry in Brownsville. During inspection, law enforcement discovered anomalies in the vehicle. Further examination lead authorities to find approximately 22 foil-wrapped packages weighing a total of 94.18 kilograms that tested positive for the characteristics of meth.
The drugs had an estimated street value of $500,000.
Santamaria will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorney David Coronado prosecuted the case.
Brooklyn, New York, Man Charged in $9 Million Conspiracy to Defraud IRSRead the Press Release
TRENTON, N.J. – A Brooklyn, New York, man was charged today for conspiring to defraud the IRS, Acting U.S. Attorney Rachael A. Honig announced.
Aleksander Zaretser, 41, of Brooklyn, New York, is charged by indictment with conspiracy to defraud the IRS. He will be arraigned on a date to be determined.
According to documents filed in this case:
From 2011 to August 2018, Zaretser helped “Individual-1” conceal millions of dollars in insurance reimbursement checks that Individual-1 diverted from the Prime Aid Pharmacies, located in New Jersey and New York. For a fee, Zaretser either cashed the checks at Brooklyn check-cashing businesses using fraudulent check-cashing accounts or diverted them through Canadian bank accounts back into U.S. accounts that Individual-1 owned and controlled. Zaretser was recorded saying that Canada was “the best place” because it was more lenient “for white collar crime.” Attempting to minimize his criminal activity, Zaretser also stated, “We don’t steal from people we steal from fuckin’ government.”
After law enforcement attempted to question Zaretser about his criminal conduct, Zaretser asked Individual-1 to pay for his legal fees, stating that he would stay quiet and not cooperate with law enforcement. Later, Zaretser encouraged Individual-1 to lie to law enforcement about their scheme and stated that he would not provide information if questioned about hiding checks from the IRS.
The scheme resulted in total tax loss to the IRS of approximately $9.1 million.
The conspiracy charge carries a maximum penalty of five years in prison and a maximum fine of $250,000 fine.
Acting U.S. Attorney Honig credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark and special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., in Newark, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Joshua L. Haber of the Health Care Fraud Unit of the U.S. Attorney’s Office in Newark.
The charge and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Bedford Man Sentenced to 15 Years for Attempted Sexual Exploitation of a MinorRead the Press Release
CONCORD - Matthew Dion, 49, of Bedford, was sentenced to 15 years in federal prison for attempted sexual exploitation of a minor, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on or about April 19, 2020, the Bedford Police Department was contacted by a representative of an organization that facilitates foreign exchange students traveling to the United States and residing with American host families. The representative reported that a 15-year-old student, who resided in Dion’s home, believed he had been recorded by Dion while he showered. The child had found what he believed to be a camera hidden inside a device that looked like a pen in the bathroom he used in the residence. The Bedford Police responded to the residence and the child was removed from the home.
On April 28, 2020, officers executed a search warrant at Dion’s residence and seized various items including a Micro SD card from Dion’s vehicle. On the device, officers found images of the child taken in the bathroom as the child was getting out of the shower. At least one of these images was sexually explicit in that the focal point was the child’s genital area. A forensic examiner determined that the SD card had been reformatted on or about April 21, 2020, shortly after the Bedford police responded to Dion’s home. This is consistent with someone attempting to delete items from the device on that date.
Dion previously pleaded guilty on May 11, 2021. In addition to his prison sentence, Dion was sentenced to a 5-year term of supervised release, $30,000 in restitution to his victim, and a $5,000 assessment fee.
“This defendant’s sexual exploitation of a minor was reprehensible conduct that merited this serious prison sentence,” said Acting U.S. Attorney Farley. “By placing a hidden camera in a bathroom, the defendant stole the innocence of a young teen and betrayed the trust of the family that had agreed to let this foreign exchange student live in the defendant’s home. The law enforcement community in New Hampshire works hard to protect children from exploitation and this 15-year sentence should send a message that this type of criminal conduct will not be tolerated in the Granite State.”
“Homeland Security Investigations is pleased with today’s sentence. Attempting to sexually exploit a minor is always wrong, but doing so under the façade of participation in a foreign student exchange program only adds to the damaging impact of the crime in this case”, said Matthew B. Millhollin, Special Agent In Charge, Homeland Security Investigations, (HSI), Boston. “As a result of his corrupt victimization of a minor student, Dion also created unwarranted damage to the reputation of the foreign student exchange program by betraying the trust they had placed in him as a participant. This case could never have been successfully investigated and prosecuted without the close coordination and teamwork of the New Hampshire Internet Crimes Against Children Task Force, the Bedford, New Hampshire Police Department, the Milford, New Hampshire Police Department and the Office of the U.S. Attorney for New Hampshire, whom we greatly value for their support.”
This matter was investigated by the Bedford Police Department, the New Hampshire Internet Crimes Against Children Task Force, Homeland Security Investigations, and the Milford Police Department. The case was prosecuted by Assistant U.S. Attorneys Georgiana L. MacDonald and Kasey Weiland.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Atlanta man sentenced for sextorting nine teenage boysRead the Press Release
ATLANTA - Myles Frazier has been sentenced to 24 years in prison for the offenses of cyberstalking, enticement of a minor to engage in prostitution, and child pornography production.
“Frazier coerced numerous teenage boys online to engage in sex acts and send him photos and videos of that activity,” said Acting United States Attorney Kurt R. Erskine. “He then threatened to expose the boys to their families and classmates when they refused to comply with his demands. This defendant is the online sexual predator that so many parents fear. His 24-year sentence is a critical step in achieving a measure of justice for the victims and their families.”
“Frazier will spend the next 24-years of his life in prison, which should send a strong message to anyone who even contemplates harming and extorting a vulnerable youth,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI takes sextortion very seriously. We would like to remind the community to be aware that people can pretend to be anyone online and to be extremely selective on what you share on the internet.”
According to Acting U.S. Attorney Erskine, the charges and other information presented in court: Between December 2017 and July 2019, Myles Frazier targeted nine high school boys on social media using fraud and deceit to coerce the teens to meet him for sex and to create and send him sexually explicit images and videos. Frazier met most of the teens using an Instagram account where he was posing as an older attractive woman.
Three of the boys he targeted (Victim 1, Victim 2, and Victim 3) attended the same high school. Frazier, posing as a woman named “Liv,” pressured and paid Victim 1 to let a man (who was Frazier) come to Victim 1’s house and engage in sex acts with Victim 1 on two occasions. Both times, Victim 1 asked Frazier to stop mid-sex act, and on the second occasion, Victim 1 had to use physical force to stop Frazier. Frazier attempted to arrange similar in-person meetings for paid sex with Victim 2 and Victim 3.
Frazier also threatened to expose Victim 1 to Victim 1’s family and school, to sue Victim 1, and to come to Victim 1’s home. Over the course of a week, Frazier sent Victim 1 more than 100 threatening messages. Frazier made similar threats to Victim 2 Frazier even threatened to expose Victim 2 to cause Victim 2 to lose a college athletic scholarship.
The other six teens Frazier targeted lived outside the State of Georgia. Frazier coerced these boys to create and send him sexually explicit images and videos by paying them and sending them pornographic videos of a woman who Frazier claimed to be. When the minors stopped complying with his demands for sexual content, Frazier tried to extort several of them, threatening to publicly post their sexual content and expose them to their school principal, superintendent, and parents.
Myles Frazier, 29, of Atlanta, Georgia, was sentenced by U.S. District Judge Steve C. Jones to 24 years in federal prison, to be followed by 20 years of supervised release. He must also register as a sex offender as a condition of his supervised release. Frazier was sentenced on August 11, 2021 and pleaded guilty on February 12, 2021.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorneys Annalise K. Peters and Laurel Boatright Milam prosecuted the case.
This case is part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney’s Offices around the country, Project Safe Childhood marshals federal, state, and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Arkansas Woman Sentenced for Defrauding California’s State Unemployment BenefitsRead the Press Release
SACRAMENTO, Calif. — Deborah Shannell Hollimon, 44, of West Memphis, Arkansas, was sentenced today by U.S. District Judge Troy L. Nunley to three years and two months in prison and ordered to pay $569,168 in restitution for a California state unemployment insurance benefits fraud and identity theft scheme, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, from September 2012 through September 2015, Hollimon and others filed over 100 fraudulent unemployment insurance claims with the California Employment Development Department (EDD) seeking approximately $882,991 using fictitious businesses. Hollimon created fictitious employers with EDD and then submitted information to EDD reporting employees for the fictitious businesses. Almost all of the individuals reported as employees of the companies were actually victims of identity theft. Hollimon subsequently filed unemployment claims in her own name and in the names of the fake employees in order to collect the benefits. Approximately $569,168 in benefits were paid out by EDD.
“The funds set aside for unemployment insurance and disability insurance are intended to benefit Californians who have earned the right to receive those benefits,” said Acting U.S. Attorney Talbert. “Fraud schemes that damage and deplete the fund undermine the benefit system and cheat those whom the funds are intended to protect. We will continue to work with our law enforcement partners to investigate and stop fraud schemes like this that harm California workers.”
“Deborah Hollimon and her co-conspirators exploited our nation’s unemployment insurance system by filing at least 100 fraudulent unemployment insurance claims in the names of identity theft victims. Today's sentencing affirms the U.S. Department of Labor Office of Inspector General’s commitment to working with our federal and state law enforcement partners to investigate identity theft that adversely impacts the integrity of the UI program,” said Quentin Heiden, Special Agent-in-Charge, Los Angeles Region.
This case was the product of an investigation by the U.S. Department of Labor Office of Inspector General and the California Employment Development Department. Assistant U.S. Attorney Shea J. Kenny prosecuted the case.
Wednesday 18 August 2021
Wyoming man sentenced to seven years in prison for meth traffickingRead the Press Release
BILLINGS — A Wyoming man convicted of trafficking methamphetamine after a traffic stop in Carbon County, Montana, was sentenced today to seven years in prison to be followed by four years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
Victor Elvin Lopez, 63, of Powell, Wyoming, pleaded guilty on April 8 to possession with intent to distribute meth as charged in a superseding information.
U.S. District Judge Susan P. Watters presided.
In court documents, the government alleged that Lopez was a habitual meth dealer who was involved in selling the drug in Montana and Wyoming. On Jan. 12, 2019, a Carbon County sheriff’s deputy stopped Lopez for speeding and drunken driving on U.S. Highway 310. Law enforcement saw a large wad of cash on his front passenger seat and was aware that Lopez was suspected of trafficking drugs in Montana, Wyoming and Colorado. A search warrant was served on the vehicle and officers located about 2.8 ounces of meth in a safe in the trunk. A little more than six months earlier, on June 9, 2018 in Powell, Wyoming, law enforcement found 294 grams of pure meth, or about 10.3 ounces, during a stop of Lopez.
Assistant U.S. Attorney Bryan T. Dake prosecuted the case, which was investigated by the Drug Enforcement Administration, Powell (Wyoming) Police Department and Carbon County, Montana, Sheriff’s Office.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Wheeling man sentenced for role in a drug distribution operationRead the Press Release
WHEELING, WEST VIRGINIA – Audie Fry, of Wheeling, West Virginia, was sentenced today to three years of probation for drug distribution in the Wheeling area, Acting U.S. Attorney Randolph J. Bernard announced.
Fry, also known as “Ott,” pled guilty to one count of “Aiding and Abetting the Distribution of Methamphetamine within 1000 feet of a Protected Location” in May 2020. Fry, age 64, admitted to selling methamphetamine near Luau Manor in Ohio County in April 2019.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Ohio Valley Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.
Find the related press release here: https://www.justice.gov/usao-ndwv/pr/13-indicted-drug-distribution-operation-ohio-county
U.S. Defense Contractor and Employees Sentenced for Procurement Fraud SchemeRead the Press Release
NEWPORT NEWS, Va. – A Hampton-based U.S. defense contractor, its owner, and four of its employees were sentenced yesterday and today. The owner was sentenced to 58 months in prison, and his four employees were sentenced today to a combined 93 months years in prison, for engaging in an extensive procurement fraud scheme involving more than $7 million in government contracts targeting the U.S. Department of Defense and other federal government agencies.
“The defendants’ egregious scheme caused the U.S. government to spend over $7 million on fraudulently imported goods. These funds were intended for deserving beneficiaries, including American workers, service-disabled veterans, and authorized trading partners,” said Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia. “This prosecution demonstrates our firm commitment to holding accountable those who defraud our military and brazenly disregard laws that are designed to protect the strength of our country’s infrastructure and manufacturing base.”
According to court documents, from 2011 to 2018, Iris Kim, Inc., (aka “I-Tek”) owner Beyung S. Kim, 62, of Newport News, and employees Seung Kim, 31, of Newport News; Dongjin Park, 54, of Yorktown; Chang You, 62, of Yorktown; Pyongkon Pak, 53, of Toano; and Li-Ling Tu, 58, of China, engaged in a conspiracy and scheme related to certain government contracts for which I-Tek acted as a supplier of goods, including items for the U.S. Marine Corps, U.S. Army, U.S. Coast Guard, and the National Guards of various states, among other agencies.
The defendants obtained government contracts that had certain set-aside preferences and source-of-good requirements. The conspirators acted to defraud the U.S. and commit other substantive offenses by fraudulently importing goods into the U.S. that were made in China in violation of the terms of these contracts. They then falsely relabeled these goods as if they were made in the U.S. Kim and his employees also acted through a separate nominee company to conceal the importing of goods from China and installed a nominee officer of I-Tek in order to be able to fraudulently qualify for contracts set aside for service-disabled veterans. The conspirators also submitted false documents and further falsely classified the value of the goods imported into the U.S. to avoid higher duties and taxes.
“The defendants deserve to be held fully accountable for this reprehensible scheme to knowingly and deceptively source illicit Chinese goods to fulfill Department of Defense contracts,” said Eric Maddox, Special Agent in Charge of the NCIS Economic Crimes Field Office. “This scheme threatened the readiness and safety of our nation’s warfighters, defrauded the American taxpayer, damaged the integrity of the Department of the Navy procurement process, and squandered valuable investigative resources that could have been directed elsewhere. NCIS will continue to work with our law enforcement partners to aggressively root out those who seek to defraud the Navy and Marine Corps.”
“For years, the Iris Kim, Inc., corporation defrauded the U.S. government out of millions of dollars and violated its contract by attempting to use substandard goods made in China, then relabeling them as 'Made in the U.S.A.' in order to make a hefty profit,” said Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). “Thanks to the multi-agency investigative work uncovering this procurement fraud scheme, those involved will now face the consequences of their crimes.”
“These sentencings demonstrate the resolve of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS) and its law enforcement partners in protecting the safety and readiness of our military,” said Christopher Dillard, Special Agent in Charge of the DCIS Mid-Atlantic Field Office. “DCIS and its partners will vigorously pursue those who put our warfighters at risk by introducing substandard products into the DoD supply chain.”
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Chris Dillard, Special Agent in Charge for the Department of Defense Office of Inspector General, Defense Criminal Investigative Service; and Eric Maddox, Special Agent in Charge of the NCIS Economic Crimes Field Office, made the announcement after sentencing by U.S. District Judge David J. Novak. Significant assistance was provided by the Defense Contract Audit Agency.
Assistant U.S. Attorney Brian J. Samuels and D. Mack Coleman, and Trial Attorney Matthew P. Mattis of the Justice Department’s Criminal Division prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:20-cr-47.
Two defendants in federal custody on child exploitation chargesRead the Press Release
BRUNSWICK, GA: A Camden County man and woman face substantial penalties after their arrests on federal child exploitation charges.
Michael Williams Kersey, 43, of St. Mary’s, Ga., and Lesley M. Henry, 45, of Kingsland, Ga., are each charged in a federal complaint with Distribution of Child Pornography and Possession of Child Pornography, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. Distribution of Child Pornography carries a statutory penalty of up to 20 years in prison, along with substantial financial penalties and a period of supervised release following any prison term.
There is no parole in the federal system.
“Our law enforcement partners continue their outstanding work in identifying and intercepting suspected child exploitation activities,” said Acting U.S. Attorney Estes. “We will continue to relentlessly protect our most vulnerable citizens.”
Both defendants are in custody after initial appearance hearings before U.S. District Court Magistrate Benjamin W. Cheesbro. The cases remain under investigation.
Criminal complaints contain only charges; defendants are presumed innocent unless and until proven guilty.
Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 800-843-5678, or https://report.cybertip.org/.
The cases are being investigated by the FBI, the Naval Criminal Investigative Service/Kings Bay, the Camden County Sheriff’s Office, the St. Marys Police Department, and the Kingsland Police Department, and is being prosecuted for the United States by Assistant U.S. Attorney Tania D. Groover.
Two Men Sentenced to 29 Months in Prison Each for Roles in Conspiracy to Distribute Heroin and Fentanyl from Drug Mill in the Bronx to Customers in New JerseyRead the Press Release
NEWARK, N.J. – Two Bronx, New York, men were sentenced today to 29 months in prison each for their roles in a conspiracy to distribute heroin and fentanyl to customers in New Jersey, Acting U.S. Attorney Rachael A. Honig announced.
Eddy Urena Rodriguez, 36, and Francisco Mercedes Gil, 33, both previously pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to informations charging them with one count of conspiracy to distribute 400 grams or more of a mixture and substance containing fentanyl. Judge Salas imposed the sentences by videoconference today. Dilson Vazquez Genao, 25, also of the Bronx, New York, was sentenced on the same charge last month to 29 months in prison.
Two other individuals – Jhan Carlos Capellan Maldonado, 31, and Reimon Genao Rosario, 23 – were indicted on the same charge in August 2019. Their cases are pending.
According to documents filed in this case and statements made in court:
In early February 2019, law enforcement officers learned that Maldonado used an apartment in the Bronx to store, mix, and package heroin and fentanyl in distribution quantities. Maldonado employed Genao, Gil, Rodriguez, Daury Contreras Ulerio, and Rosario, to assist in preparing the heroin and fentanyl for distribution to customers in New Jersey. Jose Vasquez Pena lived at the apartment in order to safeguard the narcotics and narcotics supplies.
On Feb. 25, 2019, law enforcement officers saw Maldonado drive to a retail store and emerge with several full shopping bags and then drive to the apartment. Genoa came out of the building and met with Maldonado, who got out of his vehicle and gave Genoa the plastic shopping bags. Through its investigation, law enforcement later learned that the plastic shopping bags contained materials to package heroin and fentanyl.
Genoa went back inside the building and was followed by law enforcement officers, who watched as Genoa entered Maldonado’s apartment with a key, still carrying the shopping bags. On Feb. 27, 2019, law enforcement searched Maldonado’s apartment and found seven individuals inside: including Genao, Gil, Rodriguez, Ulerio, Rosario, Maldonado, and Pena. All seven defendants attempted to escape out a window in the bedroom. All but one—Rosario—were apprehended and arrested by law enforcement officers waiting outside. Rosario was arrested at a later date. Law enforcement recovered nearly a kilogram of fentanyl from the apartment, along with materials to grind and package fentanyl for distribution.
Acting U.S. Attorney Honig credited the U.S. Department of Homeland Security, Homeland Security Investigations (HSI)’s New Jersey Division, under the direction of Special Agent in Charge Jason J. Molina in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Jason S. Gould, Acting Chief of the Violent Crimes Unit in Newark.
The charge and allegations against Maldonado and Rosario are merely accusations, and those defendants are presumed innocent unless and until proven guilty.
Top Westinghouse Nuclear Executive Charged with Conspiracy, Fraud in 16-Count Federal IndictmentRead the Press Release
Columbia, South Carolina --- Acting United States Attorney for the District of South Carolina M. Rhett DeHart announced today that a Federal Grand Jury has charged former Westinghouse Electric Company Senior Vice President Jeffrey A. Benjamin for his role in failing to truthfully report information regarding construction of new nuclear units at the V.C. Summer nuclear plant.
Benjamin, who served as Senior Vice President for New Plants and Major Projects and directly supervised all new nuclear projects worldwide for Westinghouse during the V.C. Summer project, is charged in a federal indictment with sixteen felony counts including conspiracy, wire fraud, securities fraud, and causing a publicly-traded company to keep a false record.
The charges Benjamin faces carry a maximum of twenty years imprisonment and a $5,000,000 fine.
The indictment alleges that Benjamin was personally involved in communications between Westinghouse and its owners, SCANA and Santee Cooper, regarding the status of the V.C. Summer project.
The indictment further alleges that, throughout 2016 and into 2017, when Westinghouse had direct control over the construction and schedule of the project, Benjamin received information that the V.C. Summer units were materially behind schedule and over budget. Nevertheless, at various times from September 2016 through March 2017, the indictment alleges that Benjamin assured the owners that the units would be completed on schedule and took active steps to conceal from the owners damaging information about the project schedule. During this time period, the owners paid Westinghouse over $600,000,000 to construct the two V.C. Summer units, both of which were ultimately abandoned.
“Our commitment to investigate and prosecute the V.C. Summer nuclear debacle has never wavered,” said Acting U.S. Attorney DeHart. “While the indictment – and the allegations contained within – speak for itself, it is further proof of our commitment to seek justice for South Carolina ratepayers and all others affected by the V.C. Summer project failure.”
“This indictment with its attendant allegations and charges is another step toward justice for all those responsible for the V.C. Summer nuclear plant fiasco,” said FBI Special Agent in Charge Susan Ferensic. “The FBI has devoted substantial resources to investigating this matter and will continue to work with the United States Attorney’s Office, the South Carolina State Law Enforcement Division, and the South Carolina Attorney General’s Office to find facts and prove criminal conduct.”
Benjamin is the fourth individual to be charged in the ongoing federal investigation, stemming from the exhaustive and multi-year joint investigation by the U.S. Attorney’s Office, the Federal Bureau of Investigations (FBI), the U.S. Securities and Exchange Commission (SEC), the South Carolina Attorney General’s Office, and the South Carolina Law Enforcement Division. Former SCANA Chief Executive Officer Kevin Marsh, former SCANA Executive Vice President Stephen Byrne, and former Westinghouse Vice President Carl Churchman have all pleaded guilty to federal felony charges for their roles in the matter.
Assistant United States Attorneys Winston Holliday, Brook Andrews, Emily Limehouse, and Jason Peavy along with Special Assistant United States Attorney John O'Halloran, a lawyer with the Securities and Exchange Commission, are prosecuting the case.
Acting U.S. Attorney DeHart stated that all charges against the defendant are merely accusations and that the defendant is presumed innocent until and unless proven guilty.
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Three men sentenced for illegal gambling operationRead the Press Release
AUGUSTA, GA: Two Waynesboro, Ga., men and a Greenwood, S.C., man have been sentenced for participating in an illegal gambling operation.
Grady Brandon Mobley, 44, of Waynesboro, was sentenced to five years of probation and forfeited $340,084 after pleading guilty to an Information charging him with Prohibition of an Illegal Gambling Business and Fraud and False Statements, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. Mobley also must pay $207,716 in restitution to the IRS and Georgia Department of Revenue and pay a fine of $2,000.
Two co-defendants also were sentenced after pleading guilty to Prohibition of an Illegal Gambling Business. Daniel Cates, 40, of Waynesboro, was sentenced to three years of probation and agreed to forfeit $100,000, and fined $4,000, while Joel Rees Jones, 59, of Greenwood, S.C, was sentenced to four years of probation and a fine of $10,000.
“With his long-running illegal gambling operations, Grady Mobley showed utter disregard for the law and compounded the activity by drawing others into his orbit,” said Acting U.S. Attorney Estes. “These sentences will hold them all accountable for their actions.”
As described in court documents and testimony, Mobley operated as a “bookie” for an illegal sports betting operation for at least the past 10 years in Burke County, at first collecting bets and paying out winnings himself, and later through a sports betting website operated from Costa Rica.
In 2015, Mobley merged his operation and began splitting his profits with a smaller gambling ring operated by Jones. From 2015 to 2017, Mobley cashed bettor’s checks totaling approximately $220,000 at his parent’s check cashing business which operated out of the Mobley Package Shop in Girard, Ga. To help conceal the growing amount of cash involved in the transactions, Mobley enlisted the assistance of Cates, who admitted that he funneled approximately $250,000 in gambling proceeds through his Waynesboro tire store, Cates Firestone, in return for money and favors from Mobley.
During this period, Mobley admitted filing false information on his income tax returns to conceal the amount of proceeds from the illegal gambling operation.
“Mobley’s greed continued to grow over the years as he operated his illegal gambling operation, eventually recruiting other individuals to take part,” said Chris Hacker, Special Agent in charge of FBI Atlanta. “Their greed eventually caught up with them and now they will suffer the consequences. No matter where an investigation takes us, the FBI and our federal partners will pursue criminal activity that violates our Constitution.”
“Operating an illegal gambling operation and filing false tax returns to the IRS are dangerous moves,” said IRS-Criminal Investigation Acting Special Agent in Charge Demetrius Hardeman. “Not only can the unreported income from the gambling operation result with tax due, interest, and penalties, but it also can result in prison time. The sentencing today brings accountability and justice for the conspiring parties.”
The case was investigated by the FBI and IRS Criminal Investigations, and prosecuted for the United States by Assistant U.S. Attorneys Tara M. Lyons and Asset Recovery Unit Chief Xavier A. Cunningham.
Three Charged in Fraud Schemes Targeting Home Improvement RetailersRead the Press Release
PROVIDENCE, R.I. – Federal arrest warrants were executed today against two individuals on charges they allegedly participated in a large-scale conspiracy to defraud Home Depot stores in at least three New England states. A third person alleged to have taken part in the scheme is being sought by law enforcement.
Court documents allege that Samuel Machuca, a/k/a/ Ithier Batista-Rodriguez, a/k/a Angel Garcia-Sanchez, 50, of Attleboro, MA, Luiyi Taveras-Garcia, 33, of Providence, and Abel Bier Romero, 28, of Cranston, used stolen personal identifying information and stolen or fraudulently created business credit accounts to purchase more than $600,000 in building, roofing, electrical, plumbing and other contractor supplies from Home Depot stores in Rhode Island, Massachusetts, and New Hampshire, announced Acting United States Attorney Richard B Myrus.
Earlier today, more than $30,000 dollars’ worth of construction materials allegedly obtained fraudulently were recovered by federal agents from a garage in Cranston.
According to court documents, since November 2020, several individuals have contacted Home Depot customer service and “Pro desks” in the three New England states, placing orders for various construction and contractor supplies. The orders were paid for with fraudulently created or stolen credit account information, including names, credit card numbers, security codes, and phone numbers. Notification was sent to the “customer” at the phone number provided when the order was ready for pick-up. Two or three individuals then picked-up the order, often utilizing the same white truck to transport the materials.
Samuel Machuca and Luiyi Taveras-Garcia appeared today before U.S. District Court Magistrate Judge Lincoln D. Almond. Machuca was ordered detained andTaveras-Garcia was released on unsecured bond on charges of conspiracy to commit wire fraud, wire fraud, and aggravated identity theft. Abel Bier Romero is similarly charged and is being sought by authorities.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney William J. Ferland.
The matter was investigated by the United States Secret Service New England Cyber Fraud Task Force, with the assistance of the Smithfield Police Department.
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Texas woman admits to smuggling cocaineRead the Press Release
LAREDO, Texas – A resident of San Antonio has entered a guilty plea to importing almost 17 kilograms of cocaine into the United States, announced Acting U.S. Attorney Jennifer B. Lowery.
On May 20, Alessandra Olivares attempted to enter the United States at the Juarez–Lincoln Bridge in Laredo. After a service K-9 alerted to her SUV, law enforcement conducted an X-ray inspection of the vehicle and discovered anomalies. They drilled into that area and discovered a compartment containing 15 bundles of cocaine weighing 16.84 kilograms.
The drugs had an estimated street value of over $400,000.
U.S. District Judge Diana Saldana accepted the plea and will set sentencing for a later date. At that time, Olivares faces up to 10 years in prison and a possible $10 million maximum fine. She has been and will remain in custody pending sentencing.
Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney David Fawcett is prosecuting the case.
Texas Man Charged with Possession of a Firearm by a Prohibited PersonRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Galveston, Texas, man has been indicted by a federal grand jury for Possession of a Firearm by a Prohibited Person.
Michael Herring, age 55, was indicted on June 8, 2021. He appeared before U.S. Magistrate Judge Mark A. Moreno on August 12, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on January 24, 2021, in Pierre, South Dakota, Herring, who had previously been convicted of crime punishable by imprisonment exceeding one year, and being an unlawful user of a controlled substance, knowingly possessed a firearm, which had been previously shipped and transported in interstate and foreign commerce.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The investigation is being conducted by the Pierre Police Department, the South Dakota Highway Patrol, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan Dilges is prosecuting the case.
Herring was immediately turned over to the custody of the U.S. Marshals Service.
Three Men Sentenced for Kidnapping and Murder on the Wind RiverRead the Press Release
Acting United States Attorney Bob Murray announced today that SETH THOMAS BLACKBURN, age 31 of Arapahoe, Wyoming; PETER JOSEPH BLACKBURN, a/k/a "Homer," age 34 of Riverton, Wyoming; and BRENT JORDAN GOULD, age 30 of Riverton, Wyoming, were all sentenced by Chief United States District Judge Scott W. Skavdahl for crimes related to an August 4, 2019, kidnapping that resulted in the death of Victor Dale Addison. Seth Blackburn pleaded guilty to felon in possession of a firearm and first-degree murder. The government argued for a 65-year sentence, and the court imposed a sentence of 60 years imprisonment followed by five years of supervised release. Peter "Homer" Blackburn pleaded guilty to unlawful seizure resulting in death and received a sentence of 12 years imprisonment followed by five years of supervised release. Gould also pleaded guilty to unlawful seizure resulting in death and received a sentence of 15 years imprisonment followed by five years of supervised release. All three offenders are jointly responsible for restitution in the amount of $4,946.
On the afternoon of August 4, 2019, the body of a Native American man was discovered lying face up on the bank of the Little Wind River, beneath the Sharp Nose Road Bridge on the Wind River Reservation near Arapahoe, Wyoming. The victim’s hands were bound behind his back by an electrical cord and there was obvious trauma to his face and head. Upon close inspection, it was apparent the victim, while on the bridge, had been shot at close range in the back of the head before his body was dumped off of the bridge and onto the rocks below. The victim was later identified as Addison.
Law enforcement agents from the Federal Bureau of Investigation, the Bureau of Indian Affairs, the Bureau of Alcohol, Tobacco and Firearms, the Fremont County Sheriff’s Office, the Riverton Police Department, and the Wyoming Division of Criminal Investigation, with substantial assistance from the Casper Police Department, identified Seth Blackburn as the individual who shot and killed Addison. The investigation also revealed that Seth Blackburn’s half-brother, Peter Blackburn, and Peter’s half-brother, Brent Gould, aided and abetted in Addison’s assault, kidnapping, and murder by helping restrain the victim at a residence in Riverton, and in transporting Addison from there to the bridge where he was ultimately murdered. The murder was motivated by the defendants’ belief in unfounded rumors that the victim was responsible for the death of Martika Spoonhunter. Spoonhunter died in a single vehicle car crash the day before Addison’s murder. She was alone in the vehicle, and a FBI investigation into the circumstances of her death found no evidence to suggest that her death was anything other than a tragic accident.
"When a murder is committed execution style, the only motive is pure evil," said Acting United States Attorney Bob Murray. "My office takes seriously its special responsibility to prosecute violent crimes on the Wind River Reservation and to hold these men accountable for the murder of this young man. I’m extremely proud of our local, state, and federal law enforcement agencies for their tireless, collaborative investigation which resulted in the successful prosecution of these violent and dangerous criminals."
"The sentences today should be a warning that anyone who takes matters into their own hands instead of relying on the justice system, will themselves be investigated and prosecuted. The subjects’ horrific and misguided vigilantism resulted in the assault, torture, and execution of an innocent individual in the name of revenge," said FBI Denver Special Agent in Charge Michael Schneider. "We thank the Bureau of Indian Affairs, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Riverton Police Department, the Casper Police Department, the Wyoming Division of Criminal Investigation, and the U.S. Attorney’s Office for their dedication to protect our communities while seeking lawful justice."
This case was prosecuted by Assistant United States Attorney Timothy W. Gist.
Suburban Chicago Prescription Drug Wholesaler Indicted for Allegedly Re-Selling Diverted Drugs to PharmaciesRead the Press Release
CHICAGO — The owner of a suburban Chicago prescription drug wholesale distribution company purchased more than $57 million worth of diverted, unregulated prescription drugs and re-sold them to unsuspecting pharmacies and other wholesalers, according to a federal indictment returned in U.S. District Court in Chicago.
GURUCHARAN DUA used his Plainfield, Ill.-based distribution company to knowingly obtain wholesale amounts of the diverted prescription drugs at discounted prices from unlicensed suppliers, the indictment states. Upon receipt of the diverted drugs, Dua directed his employees to clean the bottles to fraudulently make the drugs appear to be from a regulated prescription drug distribution chain, the indictment states. Dua then knowingly sold the diverted prescription drugs to unsuspecting pharmacies and other wholesalers, falsely representing to them that his company had acquired the prescription drugs from a licensed source in a regulated supply chain, the indictment states.
The charges allege that from 2011 to 2017, Dua purchased approximately $57.2 million worth of diverted prescription drugs that he later re-sold to the pharmacies and wholesalers. Some of the pharmacies were located in Chicago, Joliet, Ill., and Springfield, Mass., the indictment states.
The indictment charges Dua, 50, of Naperville, Ill., with six counts of mail fraud, four counts of wire fraud, and three counts of money laundering. Arraignment is scheduled for Aug. 31, 2021, at 11:00 a.m., before U.S. Magistrate Judge Jeffrey I. Cummings.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Lynda M. Burdelik, Special Agent-in-Charge of the Chicago Field Office of the U.S. Food and Drug Administration, Office of Criminal Investigations. The Office of the Chief Counsel at the FDA provided valuable assistance. The government is represented by Assistant U.S. Attorney Christopher V. Parente.
“Patients deserve to have confidence that they are receiving the legitimately prescribed medication and not an unregulated, diverted drug,” said U.S. Attorney Lausch. “Individuals who take advantage of their positions and seek to profit from diverted prescription drugs will be prosecuted to the fullest extent of the law.”
“Prescription drugs that are not in the legitimate supply chain can present a serious health risk to those who buy and use these diverted drugs,” said FDA SAC Burdelik. “FDA will continue to protect consumers by investigating and bringing to justice those who attempt to traffic in diverted prescription drugs.”
The public is reminded that charges are not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count of mail fraud and wire fraud carries a maximum sentence of 20 years in federal prison, while each money laundering count is punishable by up to ten years. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Steubenville man sentenced for drug conspiracyRead the Press Release
WHEELING, WEST VIRGINIA – Rashaan Donell Mukes, of Steubenville, Ohio, was sentenced today to three years of probation for his role in a cocaine, crack cocaine, heroin, and fentanyl distribution operation, Acting U.S. Attorney Randolph J. Bernard announced.
Mukes, age 35, pled guilty to one count of “Conspiracy to Distribute Cocaine Hydrochloride, Cocaine Base, Heroin, and Fentanyl” in February 2020. Mukes admitted to working with others to distribute cocaine, crack cocaine, heroin and fentanyl in Hancock County and elsewhere from February 2018 to August 2019.
Assistant U.S. Attorney Danae DeMasi-Lemon prosecuted the case on behalf of the government. The Drug Enforcement Administration; the Hancock-Brooke-Weirton Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Marshall County Drug & Violent Crimes task Force, a HIDTA-funded initiative; The Ohio Valley Drug & Violent Crimes task Force, a HIDTA-funded initiative; the Jefferson County, Ohio, Drug & Violent Crimes Task Force; the Hancock County Sheriff’s Office; the Brooke County Sheriff’s Office; the Weirton Police Department; and the West Virginia Division of Natural Resources Police investigated.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
U.S. District Judge John Preston Bailey presided.
Find related press release here: https://www.justice.gov/usao-ndwv/pr/ohio-west-virginia-and-pennsylvania-residents-indicted-drug-conspiracy-ohio-valley
South Florida Political Consultant Charged with Defrauding Covid-19 Relief ProgramRead the Press Release
Miami, Florida – Federal prosecutors have charged 28-year-old Fort Lauderdale, Florida resident Damara Holness with lying on a coronavirus relief loan application and fraudulently obtaining hundreds of thousands of dollars intended to help small businesses financially survive the Covid-19 pandemic.
According to the information filed yesterday in federal district court in Fort Lauderdale, in June 2020, Holness applied for a $300,000 forgivable, federally-guaranteed Paycheck Protection Program (PPP) loan on behalf of Holness Consulting, Inc., a Florida company that she owned. It is alleged that to justify the requested loan amount, Holness claimed in the on-line loan application, and through supporting fraudulent payroll tax forms, that her company employed 18 people and spent an average of $120,000 each month on payroll. In fact, Holness Consulting had zero employees and no payroll expenses. A bank in Georgia approved Holness Consulting’s PPP loan application based on the lies and wired $300,000 to the company’s bank account in Florida, says the information.
Once the money hit the bank account in July 2020, Holness spent the next few months creating a paper trail to make it appear as if Holness Consulting had employees and was spending the PPP money on legitimate, approved expenses, it is alleged. According to the information, Holness issued checks from the company bank account made out to others who agreed, for a fee, to help with the fraud. At Holness’ direction, the people receiving the checks would endorse and return them to Holness. Then, Holness would cash the checks at the company’s bank, give a few hundred dollars to the check endorsers, and keep the rest of the cash for herself – about $1,000 per check, says the information.
Damara Holness is a former president of the Broward County Democratic Black Caucus.
The information charges Holness with conspiring to commit wire fraud. If convicted, she faces up to 20 years in prison and a fine of up to $250,000. Holness made her initial appearance today before U.S. Magistrate Judge Patrick M. Hunt, who sits in Ft. Lauderdale. Holness was released from custody on a $100,000 personal surety bond.
Juan Antonio Gonzalez, Acting U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI Miami, announced the charges.
FBI Miami investigated this case. Assistant U.S. Attorney Jeffrey Kaplan is prosecuting it. Assistant U.S. Attorney Emily Stone is handling asset forfeiture.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law designed to provide emergency financial assistance to millions of Americans who suffered financially from the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in forgivable loans to small businesses for job retention and certain other expenses through the Paycheck Protection Program (PPP).
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
An information is merely an allegation and a defendant are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-60229.
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Smith County Man Sentenced for Cocaine Trafficking and Firearm ViolationsRead the Press Release
TYLER, Texas – A Tyler man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Johnny Lee Wickware, 38, pleaded guilty on April 29, 2021, to conspiracy to possess with intent to distribute cocaine and cocaine base and possession of a firearm during a crime of violence. Wickware was sentenced to 76 months in federal prison for the drug charge and 60 months for the firearms violation. U.S. District Judge J. Campbell Barker ordered the penalties to be served consecutively for a total of 136 months in federal prison.
“Today’s sentence is another fine example of how the Eastern District deals with drug dealers, particular those that use firearms during their drug crimes,” said Acting U.S. Attorney Nicholas J. Ganjei. “We will continue to bring cases like this to ensure the continued safety of the greater Tyler area.”
According to information presented in court, from October 2019 through June 2020, Wickware was part of a conspiracy to distribute cocaine and cocaine base in the Smith County area. During that time, Wickware sold drugs on at least five different occasions. During one of those transactions, Wickware also sold a pistol and ammunition. Wickware was indicted by a federal grand jury on October 21, 2020.
This case was investigated by the Federal Bureau of Investigation, the Texas Department of Public Safety-CID, and the Smith County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Alan Jackson.
Six Maryland Law Enforcement Officers Facing Federal Indictment for Charges Related to Schemes to Defraud Financial Institutions and Insurance CompaniesRead the Press Release
Greenbelt, Maryland – A federal grand jury has returned an indictment charging an officer for the Fairmount Heights Police Department, the Anne Arundel County Police Department, the Maryland-National Capital Park Police, and three officers from the Prince George’s County Police Department (PGPD) with federal charges for conspiracy to commit bank fraud, wire fraud and/or mail fraud. The indictment was returned on July 28, 2021, and unsealed today. The following defendants are charged in the federal indictment.
Conrad Darwin D’Haiti, age 52, of La Plata, Maryland, of the Maryland-National Capital Park
Police;
Philip James Dupree, age 37, of Pikesville, Maryland, of the Fairmount Heights Police Department;
Mark Ross Johnson, Jr., age 33, of Camp Springs, Maryland, of the PGPD;
Michael Anthony Owen, Jr., age 33, of Accokeek, Maryland, of the PGPD;
Jaron Earl Taylor, age 27, of Ft. Washington, Maryland, of the Anne Arundel County Police
Department; and
Candace Danielle Tyler, age 34, of District Heights, Maryland, of the PGPD.Dupree, Johnson, Taylor, and Tyler are expected to have an initial appearance this afternoon in U.S. District Court in Greenbelt. D’Haiti is expected to turn himself in at a later date and Owen is detained on an unrelated State charge. Both will have initial appearances in U.S. District Court at a later date.
The indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Malik Azziz of the Prince George’s County Police Department.
According to the three-count indictment, the defendants conspired to commit three separate frauds, each of which involved filing false police reports and falsified loss claims in order to fraudulently obtain funds from financial institutions and insurance companies. The defendants were all police officers at the time of the alleged criminal activity.
Specifically, the indictment alleges that from May 2019 until June 2019, Dupree, Johnson, and Tyler conspired to defraud three financial institutions by coordinating the withdrawal of money from their financial accounts through ATMs for the purpose of fraudulently claiming the money was stolen and seeking reimbursement from a financial institution. In order to execute the fraud scheme, Dupree, Johnson, and Tyler allegedly coordinated the submission of police reports to PGPD, falsely stating that their debit cards were stolen and used to withdraw fund from the ATM without their permission. The indictment alleges that members of the conspiracy, including the defendants, then submitted fraudulent claims to the victim financial institutions seeking reimbursement for the purportedly unauthorized ATM withdrawals.
Further, the indictment alleges that in January 2020, D’Haiti and Owen coordinated the relocation and vandalism of D’Haiti’s vehicle in order to file a fraudulent insurance claim. Members of the conspiracy, including D’Haiti and Owen, allegedly coordinated the submission of a PGPD police report that falsely stated that D’Haiti’s vehicle was stolen. D’Haiti then allegedly submitted an insurance claim and documents to the victim insurance company by mail and wire, seeking reimbursement for the vehicle that was reported as stolen.
Finally, the indictment alleges that in January 2020, Owen and Taylor coordinated the relocation of a vehicle in a garage to hide the vehicle for the purpose of filing a fraudulent insurance claim. Specifically, the indictment alleges that members of the conspiracy, including Owen and Taylor, moved the vehicle to a garage and conspirators, including Owen, then submitted a false PGPD police report stating that the vehicle was stolen. A co-conspirator then submitted an insurance claim seeking reimbursement for the vehicle that was reported stolen.
If convicted, Dupree, Johnson and Tyler each face a maximum sentence of 30 years in federal prison for conspiracy to commit bank fraud; D’Haiti and Owen each face a maximum sentence of 20 years in federal prison for conspiracy to commit mail fraud and wire fraud; and Owen and Taylor each face a maximum sentence of 20 years in federal prison for conspiracy to commit wire fraud. 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.
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.
Acting United States Attorney Jonathan F. Lenzner commended the FBI and the Prince George’s County Police Department for their work in the investigation and thanked the Anne Arundel County Police Department for its assistance. Mr. Lenzner thanked Assistant U.S. Attorneys Dwight J. Draughon and Adam K. Ake, who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/community-outreach.
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Several Defendants Sentenced in Separate Cases in Western District of LouisianaRead the Press Release
SHREVEPORT/ MONROE, La. - Acting United States Attorney Alexander C. Van Hook announced the resolution of five cases today in United States District Court in the Western District of Louisiana, all of which are listed below.
SENTENCING HEARINGS – SHREVEPORT
United States District Judge Donald E. Walter sentenced the following defendants:
James D. Stephens, III, 39, of Shreveport, Louisiana, was sentenced to 120 months in prison, followed by 5 years of supervised release, for possession with intent to distribute methamphetamine. Stephens pleaded guilty to the charge on April 1, 2021. The charges in the indictment stemmed from an incident on November 17, 2019, when a Bossier Parish Sheriff’s Office deputy stopped Stephens’ car for a routine traffic violation. Inside the vehicle, deputy found more than 500 grams of methamphetamine hidden inside the car.
The DEA, ATF and Bossier Parish Sheriff’s Office conducted the investigation and Assistant U.S. Attorney Mike Shannon prosecuted the case.
Marvelous Brown, 33, of Shreveport, Louisiana, was sentenced to 60 months and one day in prison, followed by 3 years of supervised release, for possession with intent to distribute marijuana and possession of a firearm in furtherance of a drug trafficking crime. On August 6, 2019, agents from the Shreveport Police Department narcotics task force encountered Brown in his vehicle near his home and detected an odor of marijuana coming from the vehicle. Brown admitted to agents that he had been smoking marijuana in his vehicle and admitted to having a small amount in his house. Agents searched the house and found approximately 213 grams of marijuana, a digital scale and packaging material, along with two pistols in Brown’s closet.
The ATF and Shreveport Police Department conducted the investigation and Assistant U.S. Attorney J. Aaron Crawford prosecuted the case.
SENTENCING HEARINGS – MONROE
United States District Judge Terry A. Doughty sentenced the following defendants:
Danny Ray Wilson, 31, of Monroe, Louisiana, was sentenced to 72 months in prison, followed by 3 years of supervised release, for being a convicted felon in possession of a firearm. On October 13, 2020, deputies with the Ouachita Parish Sheriff’s Office stopped the vehicle Wilson was driving to execute an outstanding arrest warrant on him. Law enforcement officers arrested Wilson and found a pistol loaded with 16 rounds of ammunition between the driver’s seat and center console.
Wilson has prior felony convictions for obstruction of justice, illegal possession of a stolen firearm, and illegal use of a dangerous weapon (2009) and simple burglary of an inhabited dwelling (2017 and 2018). As a convicted felon, Wilson is prohibited from possessing a firearm.
The ATF and Ouachita Parish Sheriff’s Office conducted the investigation and Assistant U.S. Attorney Jessica D. Cassidy prosecuted the case.
Lee Underwood, Jr., 53, and Ruby Jane McMillian, 35, of Eros, Louisiana, were both sentenced on drug and firearm charges. Underwood was sentenced to 240 months (20 years) in prison and McMillian was sentenced to 110 months (9 years, 2 months) in prison. Both were sentenced to 5 years of supervised release following their release from prison.
On November 20, 2020, law enforcement agents executed an arrest warrant for Lee Underwood at his home in Eros. Agents observed a firearm and drug paraphernalia in plain view at the residence and obtained a search warrant. During the execution of the search warrant, agents recovered a purse with McMillian’s driver’s license and three bags containing approximately 62 grams of methamphetamine along with the packaging. Agents also recovered two loaded firearms from Underwood’s bedroom, as well as methamphetamine in individually packaged baggies.
The DEA and ATF conducted the investigation and Assistant U.S. Attorney Jessica D. Cassidy prosecuted the case.
Jory Terrell Williams, Jr., 30, of Monroe, Louisiana, was sentenced to 209 months (17 years, 5 months) in prison, followed by 3 years of supervised release, for possession of drugs and a firearm.
Williams was charged in October 2020 and pleaded guilty to possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. According to information presented in court, law enforcement agents began an investigation into the illegal activities of Williams in January 2020. A search warrant was later obtained and executed at the residence of Williams. During the search, agents recovered 241.325 grams of methamphetamine, several digital scales, a vacuum sealer, and plastic bags. In addition, a loaded Glock pistol and over $9,000 in cash was recovered. Williams admitted to possessing the firearm, knowing that as a convicted felon he was prohibited from doing so.
Williams has prior felony convictions for aggravated battery (2018), aggravated burglary (2010), and simple burglary of an inhabited dwelling (2010).
The DEA and ATF conducted the investigation and Assistant U.S. Attorney Brian C. Flanagan prosecuted the case.
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Savannah felon convicted for illegal firearms possessionRead the Press Release
SAVANNAH, GA: A U.S. District Court jury found a previously convicted felon guilty of illegally possessing a firearm and ammunition after just 15 minutes of deliberation.
Matthew Kearse, 30, of Savannah, now awaits sentencing after his conviction for Possession of a Firearm and Ammunition by a Convicted Felon, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. The statutory penalty for the crime is up to 10 years in federal prison, followed by a period of supervised release. There is no parole in the federal system.
“To prevent violent crime and keep our neighborhoods safe, it is absolutely essential that we keep guns out of the hands of criminals,” said Acting U.S. Attorney Estes. “That requires the coordination of everyone in the community, including citizens and law enforcement, in identifying and removing those who are prohibited from possessing firearms.”
As described in court documents and testimony, Kearse is a previously convicted felon and prohibited from possessing firearms. He was on parole after a previous prison sentence when his aunt confronted him Nov. 1, 2018, about a pistol she found in her back yard. Her surveillance system captured Kearse in the area where the gun was found.
Investigators from the Savannah Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), took custody of the pistol. DNA testing, as introduced in court, demonstrated definitively that Kearse had possessed the weapon. The jury deliberated just 15 minutes before finding Kearse guilty, and he was remanded to custody of the U.S. Marshals Service to await sentencing.
“This defendant had no business carrying a firearm, given his previous criminal conduct,” said Beau Kolodka, Assistant Special Agent in Charge of the Atlanta Field Division of the ATF. “This case demonstrates the cooperation that exists between the Savannah Police Department and ATF.”
In the past three years, nearly 700 defendants have been federally charged in the Southern District of Georgia for illegal firearms offenses – most often for possessing a firearm after conviction on a previous felony.
The case was investigated by the ATF and the Savannah Police Department, and prosecuted for the United States by Assistant U.S. Attorneys Joshua S. Bearden and Marcela C. Mateo.
Roswell businesswoman pleads guilty to bank fraud in connection with the Paycheck Protection ProgramRead the Press Release
ATLANTA - Hunter VanPelt, a/k/a Hunter Lauren VanPelt, a/k/a Ellen Corkrum, a/k/a Ellen Yabba Kwame Corkrum, who defrauded the Paycheck Protection Program (PPP) of more than $6 million, has pleaded guilty to a charge of bank fraud.
“The Paycheck Protection Program helps businesses keep their workforces employed during the COVID-19 crisis,” said Acting U.S. Attorney Kurt Erskine. “When these funds are diverted by fraud, such as in this case, workers and the businesses that employ them unfortunately suffer.”
“VanPelt brazenly exploited this devastating national emergency for personal gain, and she is now being held accountable for her fraudulent conduct,” said Assistant Attorney General Kenneth A. Polite Jr., of the Justice Department’s Criminal Division. “PPP funds should be reserved for legitimate businesses and their hard-working employees who have suffered economically as a result of the pandemic. The Department of Justice is committed to ensuring that anyone who takes advantage of COVID-19 relief programs will be brought to justice.”
“The Paycheck Protection Program is key to survival for many small businesses during the COVID-19 crisis,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “It is particularly disturbing that anyone would try to capitalize off a federal program at those businesses’ expense. The FBI will persist in its efforts to stop such fraud.”
“To support small and community banks, the Federal Home Loan banks can accept Paycheck Protection Program (PPP) loans as collateral when making loans to their members,” said Special Agent in Charge Edwin S. Bonano of the Federal Housing Finance Agency, Office of Inspector General. “The Office of Inspector General is proud to work with our partners in law enforcement to prevent, detect, and deter attempts to perpetrate fraud in the Federal Home Loan Bank System and steal the assistance intended for small business owners and employees under this important part of the CARES Act.”
According to Acting U.S. Attorney Erskine, the charge and other information presented in court: VanPelt submitted six false and fraudulent PPP loans between April 27, 2020 and June 17, 2020. The amounts requested in the six loans totaled $7,943,591.50, of which $6,017,066.50 was disbursed.
VanPelt owned or controlled the six entities that sought these PPP loans:
- Georgia Nephrology Physician Associated,
- United Healthcare Group & Co.,
- Nephrology Network Group LLC,
- First Corporate International,
- Corkrum Consolidated Inc.,
- Kiwi International Inc.
The defendant, who legally changed her name from Ellen Corkrum to Hunter VanPelt in July 2016, submitted the PPP loan applications under both names.
In each of the PPP loan applications, VanPelt falsely represented the average monthly payroll and the number of employees working for the relevant company. She also submitted false IRS records, false bank statements, and false payroll reports in connection with those applications.
Federal agents were able to seize approximately $2.1 million of the fraudulent proceeds.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020. It is designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding. Additional funding was authorized by Congress in December 2020.
The PPP allows qualifying small-businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within eight weeks of receipt and use at least 75 percent of the forgiven amount for payroll.
Sentencing for Hunter VanPelt, 49, of Roswell, Georgia, is scheduled for January 4, 2022, at 10:00 a.m., before U.S. District Judge Mark H. Cohen.
This case is being investigated by the Federal Bureau of Investigation and the Federal Housing Finance Agency Office of Inspector General.
Assistant U.S. Attorney Christopher J. Huber, Deputy Chief of the Complex Frauds Section, and Department of Justice Trial Attorney Chris A. Wenger are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Rochester Man Pleads Guilty to His Role in Cocaine ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jonathan Torres, 41, of Rochester, NY, pleaded guilty before U.S. District Judge David G. Larimer to conspiring to possess with intent to distribute more than 40 grams of fentanyl. The charge carries a minimum penalty of five years in prison, a maximum penalty of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Cassie Kocher, who is handling the case, stated that between April and November 28, 2018, the defendant conspired with others to sell fentanyl and cocaine in the area of Wilkins Street in Rochester. In furtherance of the conspiracy, Torres supplied fentanyl and cocaine to individuals who would then distribute the drugs to customers in the Wilkins Street area. The defendant also acted as a supervisor by monitoring the quantities of fentanyl and cocaine sold, directing the sales by others, re-supplying street-level workers, and supervising street-level workers who sold the drugs. At least one of the street-level workers was less than 18 years old. Torres used his Raines Park residence to store, package, and manufacture the fentanyl and cocaine for sale.
The plea is the result of an investigation by New York State Police, under the direction of Major Barry Lyon; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. DeVito; and the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley.
Sentencing is scheduled for October 27, 2021, at 2:30 p.m. before Judge Larimer.
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