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1 October 2021
Chief Engineer and Greek Ship Owner and Operator Charged with Concealing Deliberate Pollution and Failing to Report a Hazardous ConditionRead the Press Release
Empire Bulkers Ltd., Joanna Maritime Limited and Chief Engineer Warlito Tan were indicted yesterday in New Orleans for violations of environmental and safety laws related to the Motor Vessel Joanna, a Marshall Islands registered Bulk Carrier.
The four-count grand jury indictment alleges that the companies and Tan tampered with required oil pollution prevention equipment and falsified the ship’s Oil Record Book, an official ship log regularly inspected by the Coast Guard. The Coast Guard found that the ship’s Oily Water Separator had been bypassed by inserting a piece of metal into the Oil Content Meter so that it would only detect clean water instead of what was actually being discharged overboard. According to the indictment, Tan and the shipping companies falsified the log and sought to obstruct the Coast Guard’s inspection.
The defendants also were charged with violating the Ports and Waterways Safety Act by failing to immediately report a hazardous situation that affected the safety of the ship and threatened U.S. ports and waters. During the inspection on March 11, 2021, the Coast Guard discovered an active fuel oil leak in the ship’s purifier room that resulted from disabling the fuel oil heater pressure relief valves, an essential safety feature designed to prevent catastrophic fires and explosions.
The criminal prosecution is being handled by Assistant U.S. Attorney G. Dall Kammer for the Eastern District of Louisiana and Senior Litigation Counsel Richard A. Udell of the Environment and Natural Resources Division's Environmental Crimes Section, with valuable assistance provided by District 8 of the U.S. Coast Guard and the Coast Guard Criminal Investigations Division.
Assistant Attorney General Todd Kim for the Justice Department’s Environment and Natural Resources Division and U.S. Attorney Duane Evans for the Eastern District of Louisiana made the announcement.
An indictment contains probable cause allegations made by a grand jury and must be proved beyond a reasonable doubt at trial.
Chadbourn Man Sentenced in Drug and Gun CaseRead the Press Release
RALEIGH, N.C. – A Chadbourn man was sentenced today by Judge James C. Dever to a total of 81 months for Possession of a Firearm by a Felon and Possessing a Firearm in Furtherance of a Drug Trafficking Crime. On June 23, 2021, Lukim Lamont Pittman pled guilty to the charges.
According to court documents and other information presented in court, the Columbus County Sheriff’s Office engaged in a narcotics investigation over three months involving Pittman. In May and July 2019, officers purchased narcotics from Pittman. Then in August 2019, the Sheriff’s Office purchased a quantity of cocaine and a Glock, model 17, 9mm firearm from Pittman. Pittman had previously been convicted of felony offenses that involved firearms.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after the sentencing by U.S. District Judge James C. Dever III. The Bureau of Alcohol, Tobacco and Firearms, Columbus County Sheriff’s office investigated the case and Assistant U.S. Attorney Charity Wilson prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:20-cr-00140-D-1.
Certified Registered Nurse Practitioner to Pay $21,000 to Resolve Civil Liability for Alleged Violations of the False Claims ActRead the Press Release
HARRISBURG, PA —The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Certified Registered Nurse Practitioner (CRNP) Kate Cordisco, has agreed to pay the United States $21,000 to resolve civil liability for alleged violations of the False Claims Act.
According to Acting United States Attorney, Bruce D. Brandler, between August 2018 and April 2019, Ms. Cordisco accepted consultation fees for ordering Durable Medical Equipment (DME) for patients with whom she did not have an established provider-patient relationship. She attested to the medical necessity of the orders for pre-selected products without any physical examination of the patients. In many instances, Ms. Cordisco had no interaction at all with the patients, and in some instances she had only a brief phone call. By approving and signing orders for medically unnecessary DME such as knee braces in exchange for a small fee per patient from a third-party marketing company, Ms. Cordisco played a key role in a larger telemedicine scheme that resulted in Medicare paying hundreds of thousands of dollars to DME companies for unnecessary medical equipment.
“While telemedicine can result in efficient and accurate patient care when practiced correctly, if providers are willing to jettison their professional responsibilities and accept small consultation fees from marketing companies to sign off on medically unnecessary orders for expensive DME, the healthcare system as a whole becomes compromised,” said Acting U.S. Attorney Brandler, “When providers in MDPA choose to engage in this conduct and facilitate these fraudulent schemes in this manner, they will be held accountable.”
This Settlement Agreement is neither an admission of liability by Ms. Cordisco nor a concession by the United States that its claims are not well founded.
The investigation was handled by Assistant United States Attorney, Tamara J. Haken and the Affirmative Civil Enforcement (ACE) Unit within the U.S. Attorney’s Office.
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Bucks County Man Convicted at Trial of Attempting to Meet an 11-Year-Old for Sex and Related ChargesRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Kyle Paine, 27, of Langhorne, PA, was convicted by a federal jury at trial of multiple child exploitation offenses which arose from an undercover investigation into the defendant’s online communications.
In January 2020, the defendant was charged by Indictment with attempted enticement of a minor to engage in sexual conduct, attempted transfer of obscene material to a minor, and possession of child pornography. The charges stem from Paine’s online communication in March 2019 with an undercover FBI agent, whom the defendant believed to be an 11-year-old child who would meet him for sex. The defendant also requested that the girl self-produce child pornography and send it to him, and sent her a sexually explicit image in an attempt to entice her to do so.
“Paine’s child victimization is over,” said Acting U.S. Attorney Williams. “Child sexual exploitation is so pervasive and harmful, made even more so by the easy availability of digital media and communications. Further, the ability to hide this type of activity online can make these cases even more difficult to investigate. As always, we stand ready with our federal partners to identify and prosecute these criminals and protect children everywhere from predators like Paine.”
“Not only did Kyle Paine amass images of child sexual abuse, he sought out sex with a child,” said Bradley S. Benavides, Acting Special Agent in Charge of the FBI’s Philadelphia Division. “It’s imperative for the FBI and our law enforcement partners to intercept such predators when we find them, and we’re gratified to see Mr. Paine brought to justice in this case. Protecting children is the priority here.”
“This kind of teamwork between the U.S Attorney’s office and the Bensalem Township Police Department allows us the opportunity to investigate these horrific crimes especially against our most vulnerable victims,” said Frederick A. Harran, Director of Public Safety for Bensalem Township. “Taking the worse kind of criminals off of our streets remains our priority. The internet continues to remain a threat to our community and must educate our children on the dangers it poses”
This case is part of Project Safe Childhood (PSC), a program bringing together all levels of law enforcement and the communities they serve to reduce the sexual exploitation and abuse of children.
The case was investigated by the Federal Bureau of Investigation and the Bensalem Police Department, and is being prosecuted by Assistant United States Attorney Kelly Harrell.
Brother and Sister Admit to Forced Labor SchemeRead the Press Release
NEWS RELEASE SUMMARY – September 30, 2021
SAN DIEGO – Cindy Mydung Luu and Jason Luu of Tierrasanta, siblings and naturalized United States citizens, pleaded guilty in federal court today to document servitude, admitting to a forced labor scheme where the victim was their Vietnamese cousin.
In a hearing before U.S. Magistrate Judge Karen S. Crawford, the defendants admitted to facilitating the travel of their cousin (identified in the plea agreements as “LX”) from Vietnam to the United States on a student visa in September 2014. Following her arrival, the defendants forced LX to work up to seven days per week for up to 12 hours per day, and she was required to forfeit all of her income. From December 2014 to March 2016, she worked for one of the defendants’ relatives at a San Diego business, and after obtaining her nail technician’s license, the defendants directed LX to quit college and work full time at their two nail salons, Eden Nails Lounge & Spa and Majestic Nail Salon, both located in Rancho Bernardo. The defendants also arranged a sham marriage to defendant Jason Luu in 2015 so that LX could obtain status as a legal permanent resident in the United States. Once she was granted legal permanent resident status, the defendants withheld LX’s “green card” from her as part of their forced labor scheme. Throughout this period of time, the defendants forced LX to work at their businesses by threatening LX with the loss of her immigration status. According to the plea agreements, the Department of Labor currently estimated that the defendants owe LX back wages, overtime, and liquidated damages in the amount of $279,467.52.
“Forced work is a form of modern-day slavery that exacts a significant financial and emotional toll. In addition to robbing victims of fair wages and freedom, this systematic coercion instills a sense of helplessness, humiliation, disorientation and confusion, often causing lasting trauma,” said Acting U.S. Attorney Randy Grossman. “The federal government will vigorously pursue those who exploit the vulnerable and force them to work to line their own pockets.” Grossman commended the excellent work of AUSA Seth Askins and former AUSA Chris Tenorio and the federal Homeland Security Investigations agents who pursued this case, which also received support from the U.S. Department of Labor.
Grossman encouraged those who come into contact with a worker who appears to be controlled or coerced to report their suspicions. Although there is no single way to identify victims of labor trafficking, some common patterns include:
- Isolating victims to prevent them from getting help. Their activities are restricted and they are typically watched, escorted or guarded by associates of traffickers. Traffickers may even “coach” them to answer questions with a cover story about being a student or tourist.
- Victims may be blackmailed by traffickers using the victims’ status as an undocumented alien or their participation in an “illegal” industry. By threatening to report them to law enforcement or immigration officials, traffickers keep victims compliant.
- People who are trafficked often come from unstable and economically devastated places as traffickers frequently identify vulnerable populations characterized by oppression, high rates of illiteracy, little social mobility and few economic opportunities.
- Women and children are often the most common victims of labor trafficking.
Individuals who suspect human trafficking are urged to call the National Human Trafficking Resource Center at 1.888.373.7888. This hotline helps members of the public determine if they have encountered victims of human trafficking, will identify local resources available to help victims, and will help coordinate with local social service organizations to help protect and serve victims so they can begin the process of restoring their lives.
The defendants are scheduled to be sentenced on December 17, 2021 at 9:00 a.m. before U.S. District Judge Jeffrey T. Miller.
DEFENDANTS Case Number 19CR4970-JM
Cindy Mydung Luu Age: 54 San Diego, CA
Jason Luu Age: 46 San Diego, CA
SUMMARY OF CHARGES
Document Servitude – Title 18, U.S.C., Section 1592
Maximum penalty: 5 years’ imprisonment and $250,000 fine
AGENCY
Homeland Security Investigations
Boston Woman Pleads Guilty to Federal Firearm OffenseRead the Press Release
BOSTON – A Boston woman pleaded guilty yesterday in federal court in Boston for illegally possessing a firearm and ammunition.
Bianca Blanchard, 33, pleaded guilty to one count of being a felon in possession of a firearm and ammunition. U.S. Senior District Court Judge Rya Zobel scheduled sentencing for Jan. 6, 2022. Blanchard was charged in August 2019.
Blanchard was arrested in May 2019 after law enforcement determined that she had fired a bullet in the direction of a moving vehicle on a residential street in Dorchester, which led to a retaliatory shooting. A search of Blanchard’s residence resulted in the recovery of a Ruger .380 caliber semi-automatic pistol and an extended magazine containing 12 rounds of .380 caliber ammunition. Due to a prior conviction, Blanchard is prohibited from possessing a firearm and ammunition.
The charge of being a felon in possession of ammunition provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Acting Commissioner Gregory Long made the announcement today. U.S. Attorney Elianna Nuzum of Mendell’s Major Crimes Unit is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Beckley Man Pleads Guilty to Federal Gun ChargeRead the Press Release
BECKLEY, W.Va. – A Beckley man pleaded guilty today to a federal gun charge. James David Morris, Jr., 42, pleaded guilty to being a felon in possession of a firearm.
According to the plea agreement and statements made in court, Morris was contacted at his residence in Beckley by deputies with the Raleigh County Sheriff’s Office on or about June 10, 2021. While deputies were inside Morris’ home speaking to him about an unrelated incident, they discovered a 12 gauge shotgun in the living room. Morris admitted to possessing the shotgun, and also admitted to knowing that he was prohibited from possessing a firearm as a result of having prior felony convictions. Morris was convicted of federal firearm crimes in the Southern District of West Virginia in 2013 and 2018. Morris was still serving a term of supervised release due to his 2018 federal conviction when he committed the current offense.
Morris faces up to 10 years in prison when he is sentenced on January 22, 2022.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Raleigh County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Assistant United States Attorney Jeremy B. Wolfe is handling the prosecution. United States District Judge Frank W. Volk presided over the hearing.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 5:21-cr-00158 and 5:18-cr-00071.
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Bayside State Prison Corrections Officer Arrested for Conspiracy to Violate Civil RightsRead the Press Release
NEWARK, N.J. – A corrections officer at Bayside State Prison in Leesburg, New Jersey, was arrested today for allegedly assaulting and physically punishing inmates, Acting U.S. Attorney Rachael A. Honig announced.
John Makos, 41, of Millville, New Jersey, was charged by complaint with participating in a conspiracy to deprive inmates of civil rights. Makos is scheduled appear this afternoon by videoconference before U.S. Magistrate Judge James B. Clark 3rd.
“Prisoners are entitled to be treated with basic dignity, not pummeled and humiliated at the whim of correctional officers,” Acting U.S. Attorney Honig said. “We once again affirm our commitment to uphold the civil rights of all persons, including those living in a correctional setting.”
“Our investigation alleges that the actions in this case included beatings of people without provocation or justification in violation of their civil rights,” FBI Special Agent in Charge George M. Crouch Jr. said. “A badge is not a license to abuse the power it conveys or to deny the civil rights of the people in one’s custody. It matters not whether the wearer belongs to a federal, state, or local law enforcement agency, or a correctional facility, we all bear the same responsibility to respect and defend the rights of those in our care. Let me be clear, the FBI protects and upholds the rights of all of our citizens. We will go wherever we are needed to weed out illegal activity and arrest the perpetrators.”
According to documents filed in this case and statements made in court:
From at least April 2019 through December 2019, while working as a corrections officer, Makos conspired with others at Bayside State Prison to assault and punish certain inmates in a cruel and arbitrary manner by using excessive force that caused physical injury and pain to the victims. Makos and at least one other corrections officer established an ad hoc regime of physical punishments for actual and perceived violations of the prison’s rules and customs and meted out such punishments in a cruel and degrading manner, at times with the assistance of other inmates.
Makos and at least one other corrections officer assaulted a victim inmate using what was known to inmates as “the fence treatment:” one of the victim’s arms would be handcuffed to a fence in the back area of the prison’s kitchen and the other arm would be handcuffed to a swinging door, so that the inmate would appear to be crucified. Another inmate, working with Makos and at least one other corrections officer, moved the swinging door so that the victim inmate’s body expanded and collapsed while Makos and at least one other corrections officer delivered closed fist strikes to the victim’s body.
Makos and at least one other corrections officer also attempted to ensure that their victims would not report the abuse to prison authorities by leading the inmates to believe that if they reported the abuse, they would lose their kitchen jobs, the income associated with those jobs, and the attendant access to better and more plentiful food items, all of which were highly valued within the prison.
The conspiracy to violate civil rights charge carries a maximum penalty of 10 years in prison and a maximum fine of $250,000.
Acting U.S. Attorney Honig credited special agents of the FBI Atlantic City Resident Agency, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation. She also thanked the New Jersey Department of Corrections, under the direction of Acting Commissioner Victoria Kuhn, for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the Special Prosecutions Division in Newark and Trial Attorney Shan Patel of the U.S. Department of Justice’s Civil Rights Division.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Baltimore Serial Armed Robber Pleads Guilty to Robbing 35 Businesses and Brandishing a Firearm in Relation to a Violent CrimeRead the Press Release
Baltimore, Maryland – Darnell Gerald Gaither, Jr., age 27, of Baltimore, Maryland, pleaded guilty today to affecting commerce by robbery and brandishing a firearm in relation to a violent crime, specifically in relation to 35 armed robberies committed throughout Baltimore County, Maryland.
The guilty plea 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; Chief Melissa R. Hyatt of the Baltimore County Police Department, and Commissioner Michael Harrison of the Baltimore City Police Department.
According to his guilty plea, from December 2018 to November 24, 2019, Gaither committed at least 35 robberies throughout Maryland. In at least one robbery, Gaither brandished a firearm and in least five occasions, he robbed the stores while partially revealing a handgun. In all other robberies, Gaither passed notes to an employee that stated he possessed a gun.
Specifically, on October 25, 2019, Gaither robbed a Baltimore, Maryland smoothie franchise by entering the store and handing the cashier a note that read “I have a gun give me all the cash”. When the cashier refused to open the register, Gaither produced a handgun. The victim reported that Gaither stated that he would kill the victim if she did not open the register. The cashier opened the register and Gaither then ordered the cashier and two other employees to the floor while he removed the cash from the register. Gaither then proceeded to order three employees to open the safe in a back area and hand him additional cash. Gaither took funds from the franchise and fled the store.
Five days later on October 30, 2019, Gaither robbed a Baltimore, Maryland general store by posing as a customer. After approaching the register with a bag of candy, Gaither handed the cashier a note that stated, “You know what it is”, while displaying what appeared to be a handgun inside his waistband. The cashier believed that Gaither possessed a real firearm and feared for her safety. The cashier handed $197 in U.S. currency to Gaither, who then fled the store.
The stores Gaither robbed included fast-food restaurants, general stores, cell phone stores, gaming stores, a gym, and chain pharmacies. Gaither robbed a number of the stores on more than one occasion.
The tellers, fearing for their personal safety, often provided Gaither with cash from their registers, ranging from a couple hundred dollars to $1,900.
Gaither faces a maximum of 20 years in prison for affecting commerce by robbery and a minimum seven years in federal prison for brandishing a firearm in furtherance of a violent crime followed by five years of supervised release. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for December 6, 2021 at 9:30 a.m.
Acting United States Attorney Jonathan F. Lenzner commended the FBI, Baltimore County Police Department and the Baltimore City Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Paul E. Budlow, who is prosecuting the case.
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Baltimore Police Officer Facing Federal Indictment for Stealing $1,000 in Informant Funds from the Baltimore Police DepartmentRead the Press Release
Baltimore, Maryland – A federal grand jury has returned a superseding indictment today charging Ethan Glover, age 49, of Baltimore, Maryland, for the federal charges of false statements to law enforcement. Glover joined the Baltimore Police Department (BPD) on February 19, 2003. He became a federal task force officer (TFO) with the Drug Enforcement Administration in 2013.
The superseding indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
The superseding indictment alleges that Glover stole $1,000 in informant funds from the Baltimore Police Department.
Allegedly, in August 2018, Glover offered to pay a witness for information regarding a Baltimore City, Maryland vehicular homicide. Glover allegedly contacted the witness to arrange a date, time, and location to meet and exchange the information for a $1,000 payment. Once the witness signed paperwork provided by Glover and another individual, Glover paid the witness $1,000 sourced from the Baltimore Police Department Fiscal Section.
After the meeting with Glover, the witness ultimately decided not to serve as a BPD informant and wanted to return the $1,000 payment to Glover. The witness then returned the payment to Glover. Allegedly, Glover subsequently kept the $1,000 for himself and did not return it to BPD.
The original two-count indictment alleges, on April 8, 2016 Glover participated in the execution of a search warrant on John Avenue as a member of DEA Group 51. Law enforcement recovered three duffel bags containing large amounts of cash and a handwritten document with currency totals stating there was $2,428,900 in the house. Glover transported the cash from the residence to another location where a search warrant had been executed, and then to the DEA Baltimore Office, alone in his vehicle the entire time. The indictment alleges that during the drive from John Avenue to the DEA Baltimore Office, Glover stole a portion of the cash seized at the John Avenue residence. Ultimately, Glover took the seized cash to a professional counting service due to the large amount. The counting service found that the amount of cash seized, inclusive of any suspected counterfeit bills, totaled $2,419,125, which is $9,775 less than what was actually seized at the John Avenue residence, according to the handwritten document recovered within the home.
The indictment further alleges that Glover went to his then-girlfriend’s apartment with what he described to her as $10,000 in cash. Glover allegedly hid the funds in her bathroom. During conversations about the money, Glover told his girlfriend that he was followed by another law enforcement while driving the cash from the search warrant site and that the money came from a “big case” that had been recently featured on the news. Approximately one week later, Glover allegedly moved the money from his girlfriend’s apartment to his home.
On April 23, 2016, Glover allegedly used some of the cash stolen from the John Avenue search to buy his then-girlfriend a pair of shoes valued at $295 from a mall in Pennsylvania. According to the indictment, in June 2016, his then-girlfriend moved into his home and saw a large sum of money hidden behind Glover’s refrigerator.
As detailed in the indictment and superseding indictment, on February 28, 2020, Glover participated in a voluntary interview with the FBI about a seizure that had occurred with the officer-in-charge of BPD’s Gun Trace Task Force. Before being questioned, Glover confirmed that he understood that it was a crime to lie to the FBI agents interviewing him. When questioned, Glover asked the interviewing agent how much the arrestee “is saying is missing? Is it money or drugs? How much did he say he had? A million?” or words to that effect. Glover told investigators that he did not witness any officer steal money during this seizure. Glover also stated that he did not steal money from this particular seizure or any other case, saying, “I’ve never stolen anything in my life. Never money or drugs.”
If convicted, Glover faces a maximum sentence of 10 years in federal prison for theft of government property and five years in federal prison for making false statements to federal law enforcement. 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. No court appearance is currently scheduled for Glover.
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 for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Leo J. Wise and Christine Goo, who are prosecuting this case.
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Atlanta Man Sentenced to Jail for Bribing U.S. Marine Corps Official in Exchange for $2,000,000 in Transportation ContractsRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that on Thursday, September 23, 2021, the Honorable Judge Carl J. Barbier sentenced DARREL FITZPATRICK, aged 31, to 60 months in the Bureau of Prisons in what the Judge called a “massive bribery and fraud scheme” involving the United States Marine Corps.
The defendant had previously pleaded guilty on January 21, 2021 to Conspiracy to Commit Bribery, in violation of Title 18, United States Code, Sections 371 and 201(b)(1). The Court also set a restitution hearing on December 16, 2021, to determine how much money the defendant owes the government as a result of the scheme. The defendant must also serve three years of supervised release following his term of imprisonment and pay a $100 mandatory special assessment fee.
According to the Factual Basis, in 2019 FITZPATRICK was a senior account manager at Company A, a bus brokerage company that provided transportation to the United States Marine Corps Reserves. That same year, FITZPATRICK started a competing transportation brokerage company called National Charter Express.
In 2019, FITZPATRICK agreed to pay kickbacks to Erik Martin, a civilian employee of the United States Marine Corps Reserves, in exchange for Martin directing business to Company A, and then later, National Charter Express. The conspiracy resulted in at least $2,000,000 in transportation contracts being corruptly awarded to companies associated with FITZPATRICK. In exchange, FITZPATRICK wired and attempted to wire Martin over $250,000 in bribes.
U. S. Attorney Evans praised the work of the Defense Criminal Investigative Service (DCIS), the Naval Criminal Investigative Service (NCIS), and the United States Secret Service for their investigation in this case.
“Mr. Fitzpatrick deserves to be held fully accountable for his criminal actions to bribe a Marine Corps employee to direct contracts to his transportation company,” said Special Agent in Charge Thomas Cannizzo of the NCIS Southeast Field Office. “This sentencing should serve as a warning that those who seek to defraud the Department of the Navy will always be exposed and investigated to the fullest extent. NCIS and our partners remain committed to rooting out bribery and corruption that damages the integrity of the Department of the Navy’s procurement process, wastes American taxpayer money, and ultimately jeopardizes the safety of our nation’s warfighters.”
“I’d like to thank the U.S. Attorney’s Office and the Naval Criminal Investigative Service for partnering on this important investigation,” stated Special Agent in Charge Cynthia A. Bruce of the Defense Criminal Investigative Service (DCIS), the investigative arm of the Department of Defense, Office of Inspector General. “I am pleased that we were able to secure a significant forfeiture to take back ill-gotten gains from the defendants and send a clear message that ultimately crime does not pay."
The prosecution is being handled by Assistant United States Attorneys Andre Lagarde and Myles Ranier.
Akron Man Charged with Escape from Northeast Ohio Correctional CenterRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that a federal grand jury returned an indictment charging Joe L. Fletcher III, 33, of Akron, with one count of escape.
According to the indictment, on or about August 18, 2021, the Defendant allegedly escaped from custody in the Northeast Ohio Correctional Center. The Defendant was detained pending trial for charges of felon in possession of a firearm, possession with intent to distribute a controlled substance and possession of a firearm in furtherance of a drug trafficking offense. The Defendant was apprehended by law enforcement officers with the Northern Ohio Violent Fugitive Task Force on August 20, 2021.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, a defendant’s sentence will be determined by the Court after review of factors unique to this case, including the Defendant’s prior criminal records, if any, the Defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum, and, in most cases, it will be less than the maximum.
The investigation was conducted by the ATF, USMS Violent Fugitive Task Force and Akron Police Department. This case is being prosecuted by Assistant United States Attorney Peter E. Daly.
Akron Man Charged with Armed Robbery and CarjackingRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that a federal grand jury returned a seven-count indictment charging Aaron J. Gaines, age 39, whose last known address was in Akron, Ohio, with interference with commerce by robbery, possession of a firearm in furtherance of a crime of violence, attempted carjacking, carjacking and felon in possession of a firearm.
According to the indictment, on or about January 25, 2021, the Defendant is accused of brandishing a firearm, threatening store employees and robbing a convenience store on Arlington Street in Akron. Additionally, the Defendant is accused of discharging a firearm in an attempt to carjack a vehicle and brandishing a firearm in a second, successful attempt to carjack another vehicle.
The Defendant is also charged as a felon in possession of a firearm and ammunition. The Defendant is accused of knowingly possessing a 9mm semiautomatic pistol and ammunition, while prohibited due to previous convictions of aggravated burglary and kidnapping in the Summit County Court of Common Pleas.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, a defendant’s sentence will be determined by the Court after review of factors unique to this case, including the Defendant’s prior criminal records, if any, the Defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum, and, in most cases, it will be less than the maximum.
The investigation was conducted by the FBI and Akron Police Department. This case is being prosecuted by Assistant United States Attorneys Peter E. Daly and Toni Beth Schnellinger Feisthamel.
33-Year-Old Pedophile from Montana Civilly Committed as a Sexually Dangerous PersonRead the Press Release
RALEIGH – Acting United States Attorney G. Norman Acker, III, announced that United States District Judge James C. Dever III civilly committed Oliver Lee White, 33, to the custody of the Attorney General as a sexually dangerous person under the Adam Walsh Child Protection and Safety Act of 2006.
White was alleged to have sexually molested at least 13 young girls on the Crow Indian Reservation, Montana. The evidence at trial showed that beginning in 2007, when White was around 20 years old, until 2013, White repeatedly molested young girls, ranging from the ages of 2 to 13, at the home of his adoptive mother, Peggy White (a/k/a Well-Known Buffalo). Peggy White’s home, which is the location of The Center Pole, a non-profit organization in Garryowen, Montana, always had children around, including children being fostered by Peggy White. The layout of the facility made it easy for White to avoid supervision and detection of his predatory conduct. The evidence showed White had a persistent and common pattern of sexually offending the young girls by isolating them and then molesting them for his own sexual gratification.
As a result of his serious criminal offenses, White was criminally charged in United States District Court for the District of Montana with numerous sex crimes. Peggy White and her partner, Susan Kelly, were also criminally charged with misprision of felony for their part in enabling him and covering up White’s molestations. However, due to his mental illnesses, White was deemed incompetent to stand trial, and as a result, Peggy White and Susan Kelly were unable to be prosecuted for their alleged crimes. Ultimately though, the United States certified White as a sexually dangerous person under the Adam Walsh Act. Congress passed this Act to provide another powerful legal mechanism for protecting the public from some of the nation’s most dangerous sexual offenders. The Act allows the United States to seek civil commitment of sexually dangerous persons who, because of a serious mental illness, abnormality, or disorder, would have serious difficulty refraining from sexually violent conduct or child molestation.
The United States believed that White met every element of that definition and the Court agreed. On September 30, 2021, Judge Dever announced his ruling and civilly committed White to the custody of the Attorney General as a sexually dangerous person. In doing so, Judge Dever credited the “credible, consistent, and extremely persuasive” testimony of five of White’s victims, finding that White molested them. Judge Dever also found that White suffers from Pedophilic Disorder and Intellectual Disability, and as a result of these serious mental illnesses, abnormalities, or disorders White would have serious difficulty refraining from child molestation if released. In particular, Judge Dever observed that members of White’s family, including his mother, “concealed the allegations and degraded the victims.” The Court concluded that if White returned to an environment like The Center Pole with young girls around, he would molest again.
“This was a tragic and unique case,” said Acting United States Attorney G. Norman Acker, III. “Because Mr. White could not be criminally prosecuted due to his incompetency, the Government was required to prove in this civil proceeding he had committed acts of child molestation. The Government did so through the courageous, gut-wrenching testimony of his victims, who traveled across the country to face their abuser and his family members who concealed his conduct. Presenting such fragile testimony is no easy feat, and as such, I express my deep appreciation to the FBI agents, victim specialists, and forensic interview specialists in Montana for their tireless efforts in working with the victims. In particular, FBI Victim Specialist Michele Stewart was invaluable. Without her exceptional rapport with the victims and personal involvement, including traveling with the victims to North Carolina to testify, they may not have found the courage to testify. The victims’ courageous testimony will help keep others safe from Mr. White.” Mr. Acker continued, “This case is a great example of how a true team effort can help make the communities within this District and across the country safer.”
“The Judge’s decision provides some measure of justice as Oliver White will never have the opportunity to hurt another child,” said Special Agent in Charge Dennis Rice of the FBI’s Salt Lake City Field Office. “We commend the survivors of White’s abuse who demonstrated resilience in the face of adversity and acted to protect other children in a selfless display of their courage. The FBI wishes to thank the Bureau of Indian Affairs Office of Justice Services for their invaluable partnership investigating this years-long case."
The United States Attorney’s Office for the Eastern District of North Carolina litigates all Adam Walsh Act cases for the entire country. All sexually dangerous persons who are committed to federal custody are housed in a federal facility in that district, where intensive, residential treatment is offered to them. White is the eighty-sixth sexually dangerous person committed under the Adam Walsh Act.
Assistant United States Attorney Michael Bredenberg and Special Assistant United States Attorney Genna Petre represented the government in this case with assistance from Paralegal Amy Dale and Victim Specialists Michelle Scott, Kory Williford, and Michele Stewart.
Related court documents and information from the civil lawsuit are on PACER by searching for Case No.5:17-hc-02162-D.
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30 September 2021
Yarmouth Man Pleads Guilty to Identity Theft and SBA Loan Fraud ChargesRead the Press Release
PORTLAND, Maine—A Yarmouth man pleaded guilty today in federal court to aggravated identity theft, and in a separate case waived indictment and pleaded guilty to making a false statement to the Small Business Administration in a loan application, Acting U.S. Attorney Donald E. Clark announced.
According to court records, in November 2016, John J. Cavanaugh, Jr., 52, applied to the Social Security Administration (SSA) for disability insurance benefits on behalf of his minor son. During the application process, Cavanaugh falsely claimed that his son had resided with him since birth, and that he and his son lived together. In fact, neither his son nor his son’s mother had ever lived with Cavanaugh.
In December 2016, Cavanaugh submitted a typewritten letter to the SSA that was purportedly authored and signed by his son’s mother. The letter falsely stated that she and her son were living with Cavanaugh. The letter was provided in support of Cavanaugh’s application for disability insurance benefits on his son’s behalf. His son’s mother did not write the letter, and the signature on the letter was not hers. Cavanaugh did not have her permission to write the letter on her behalf. The SSA approved his application for benefits and he received them until June 2018, when his son’s mother learned that he was receiving them and notified the SSA.
Also according to court records, in April 2020, Cavanaugh applied for an Economic Injury Disaster Loan through the U.S. Small Business Administration. The loans were designed to support business owners negatively affected by the COVID-19 pandemic. The online application that Cavanaugh completed asked if he was currently subject to an indictment or other formal criminal charge. Cavanaugh falsely answered “No” to this question. In fact, he was under indictment in the U.S. District Court for the District of Maine, and was subject to an order setting conditions of release that informed him that if he committed a new federal felony while on release, he was subject to additional penalties.
Cavanaugh faces a mandatory two years in prison and a $250,000 fine on the aggravated identity theft charge. He faces a maximum sentence of 30 years in prison, a $1 million fine and five years of supervised release on the false statement charge. He faces an additional sentence of up to 10 years in prison, consecutive to any other sentence imposed, because he committed the false statement offense while on pretrial release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI investigated the case with assistance from the SSA Office of Inspector General and the U.S. Small Business Administration.
Washougal, Washington resident pleads guilty to producing and uploading video of rape of infantRead the Press Release
Tacoma – A 27-year-old Washougal, Washington, man pleaded guilty today in U.S. District Court in Tacoma to two federal felonies for making videos of his rape of two infant children, announced Acting U.S. Attorney Tessa M. Gorman. Steven Rian Price faces a mandatory minimum 15 years in prison when sentenced by U.S. District Judge Benjamin H. Settle on January 3, 2022. Under the terms of the plea agreement, both the prosecution and defense will recommend a 20-year prison term and lifetime supervised release to follow prison.
According to the plea agreement, Price was residing with his spouse and an infant child in a motel in Washougal. In summer 2019, Price used his smartphone to videotape the rape of the infant child. Later that year, Price used the online communication platforms Discord and Skype to share videos depicting his rape of the infant. Also in the summer of 2019, Price filmed himself sexually assaulting a second infant – the child of an acquaintance who had also resided at the motel. In October 2019, the day after one of the videos was uploaded, Discord alerted law enforcement and Vancouver Police moved quickly to arrest Price. Prior to this criminal conduct, Child Protective Services (CPS) had terminated the parental rights of Price and his spouse and had four children removed from their care. CPS was unaware of the birth of the victim in this case.
Production of child pornography is punishable by a mandatory minimum 15 years in prison and up to 30 years in prison. Judge Settle will determine the appropriate sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the Vancouver Police Department Digital Evidence Cybercrimes Unit.
The case is being prosecuted by Assistant United States Attorney Angelica Williams.
Two South Louisiana Men Sentenced in Federal CourtRead the Press Release
LAFAYETTE, La. - Acting United States Attorney Alexander C. Van Hook announced that two men from South Louisiana have been sentenced by United States District Judge Robert R. Summerhays.
Deondrick W. Brown, 26, of New Iberia, Louisiana, was sentenced to 120 months in prison, followed by 5 years of supervised release for drug trafficking. On June 12, 2020, Louisiana State Police Troopers conducted a traffic stop of a vehicle being driven by Brown. Law enforcement officers detected a smell of marijuana coming from the vehicle and a K-9 positively alerted to the presence of narcotics. A search of the vehicle produced several bags of multi-colored pills/tablets suspected to be MDMA (ecstasy), with a total weight of 6.5 kilograms. The seized narcotics were sent to the DEA lab for testing and analysis. The analysis confirmed that the 6.5 kilograms of seized narcotics amounted to 46,089 individual pills/tablets containing methamphetamine. Brown was arrested and charged with possession with intent to distribute methamphetamine and pleaded guilty to the charge on June 30, 2021.
The U.S. Drug Enforcement Administration and Louisiana State Police conducted the investigation. Assistant U.S. Attorney Danny Siefker prosecuted the case.
In an unrelated case, Jordan Leon Huntsberry, 30, of Abbeville, Louisiana, was sentenced to 24 months in prison, followed by 3 years of supervised release. Huntsberry was charged with making counterfeit United States money and pled guilty to the charge in June 2021. According to information presented to the court at the guilty plea hearing, while investigating a possible firearm-related crime on South College Road in Lafayette on July 25, 2020, officers with the Lafayette Police Department knocked on the door of Huntsberry’s residence. Officers were permitted to enter the apartment and observed in plain view several wet Federal Reserve Notes that appeared to be counterfeit, as well as a printer in the living area of the residence. A search warrant was obtained, and officers conducted a full search of the residence and found 467 suspected counterfeit Federal Reserve Notes of various denominations. Some of the notes were already cut and some were on printed sheets. Officers also located a printer, laptop computer, and other equipment used in counterfeiting. The seized Federal Reserve Notes were analyzed by a Special Agent with the U.S. Secret Service and determined to be counterfeited notes.
The U.S. Secret Service and Lafayette Police Department conducted the investigation. Assistant U.S. Attorney Craig R. Bordelon prosecuted the case.
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Two More Mexican Nationals Are Sentenced After Pleading Guilty to International Timeshare Telemarketing ScamRead the Press Release
NEW ORLEANS – CLAUDUA ANTILLON ZAHUITA, age 38, and SERGIO LEON KURI, age 40, both residents and citizens of Mexico, were sentenced to prison on September 29, 2021 by U.S. District Court Judge Jane Triche Milazzo of the Eastern District of Louisiana after they each pleaded guilty to one count of conspiracy to commit wire fraud, announced U.S. Attorney Duane A. Evans. ANTILLON ZAHUITA received 48 months, while LEON KURI received 60 months.
As detailed in the original indictment and superseding bill of information, the defendants, from at least January 1, 2016, to the present, conspired together and with others to commit wire fraud in connection with a telemarketing scheme that targeted and victimized persons in the United States, Canada and South America. As part of the elaborate scheme, the conspirators made unsolicited phone calls to owners of resort timeshare properties to induce them into paying fees associated with the bogus sale of their property. The defendants misrepresented the existence of a buyer for their timeshare and solicited money from the victims to facilitate the sale. They solicited the timeshare owners to enter into agreements to sell their timeshares and pay for alleged “closing costs” with electronic wire transfers from banking institutions within the United States to Mexican banks. There were no interested buyers, the closings did not occur, and the timeshares were not resold. Instead, the conspirators simply pocketed the advanced fees. Of the U.S. victims, 40 were age 60 and older and the total estimated loss is at least $20,000,000.
The defendants, who are all based in Mexico, operated under the business names Planet Travel and Newport International Investments, and at other times used the following business names: Advance Travel INC, All American Real Estate, American International Investment Group, Bear Claw Travel, Best Investment Services, Champion Properties, Closing Source LLC, Equity Closing Services Group, Global Offshore Services, NSC Holding, Peach Title, Sandia Title, Travel and Acquisitions, Travel Innovations, Travel Plus Acquisitions, Travel Right, and World Travelers, Inc. All these domain websites have been seized by the Federal Bureau of Investigation and the Department of Justice.
In addition to imprisonment, ANTILLON ZAHUITA and LEON KURI were given three (3) years of supervised release, a $100 mandatory special assessment fee, and a restitution hearing is to be set at a later date. Each defendant was also ordered to be immediately deported upon the expiration of their terms of imprisonment.
This case is the product of an extensive and ongoing investigation by special agents of Federal Bureau of Investigation. Assistant United States Attorneys Edward J. Rivera and Paige O’Hale are prosecuting the case.
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Two Men Sentenced to at least 14 Years in Prison for Cell Phone Store RobberiesRead the Press Release
Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on September 24, 2021, United States District Judge J.P. Stadtmueller sentenced Maurice Tolbert (age 43, of Milwaukee) to 15 years and ten months in prison after Mr. Tolbert pled guilty to his involvement in four cell phone store robberies and two counts of brandishing a firearm during a crime of violence.
Judge Stadtmueller previously sentenced Mr. Tolbert’s co-defendant and cousin, Richard Tolbert (age 38, of Chicago) to 14 years in prison after he pled guilty to his involvement in three of the cell phone store robberies and two counts of brandishing a firearm during a crime of violence. Each defendant faced a statutory mandatory minimum sentence of 14 years in prison for the use of firearms during crimes of violence.
The evidence reflected that Maurice and Richard Tolbert entered the cell phone stores and brandished firearms to steal cell phones and other electronic devices. On some occasions, they ordered the employees into the back rooms, where on at least one occasion they bound the employees’ wrists and ankles. The evidence further reflects that the firearms used during the robberies were purchased by Maurice Tolbert’s girlfriend, Angel Price, who was convicted in this case of providing a false statement during the purchase of a firearm and sentenced to 24 months of probation.
This case was investigated by the FBI’s Milwaukee Area Violent Crimes Task Force, the Milwaukee Police Department, the West Allis Police Department, the Milwaukee County District Attorney’s Office Investigators, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant United States Attorney Margaret B. Honrath
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Two Former Correctional Officers Charged with Accepting Bribes and Smuggling Contraband into Federal PrisonRead the Press Release
As part of the Justice Department’s continuing efforts against prison corruption, a federal grand jury in the District of Kansas returned two indictments on Sept. 22 charging two former correctional officers with smuggling drugs and other contraband into Leavenworth Detention Center.
According to court documents, Jacqueline Sifuentes, 25, of Laredo, Texas, previously worked as a correctional officer at Leavenworth Detention Center, a privately run, maximum-security federal prison in Leavenworth, Kansas. The indictment alleges that Sifuentes used her position as a public official to smuggle contraband, including methamphetamine, marijuana, and tobacco, into the prison in exchange for bribe payments from federal inmates.
Sifuentes, who was arrested Tuesday, is charged with conspiring to commit bribery and provide contraband, bribery, and providing contraband to an inmate. She made her initial appearance yesterday before U.S. Magistrate Judge Diana Song Quiroga of the U.S. District Court for the Southern District of Texas. If convicted of all counts, she faces up to 40 years in prison.
According to court documents, Cheyonte Harris, 29, of Raytown, Missouri, also previously worked as a correctional officer at Leavenworth Detention Center. The indictment alleges that Harris used her position as a public official to smuggle contraband into prison in exchange for bribe payments. The indictment further alleges that she made material misrepresentations to the FBI when she was interviewed in April 2021.
Harris, who was arrested on Monday, is charged with conspiring to commit bribery and provide contraband and making false statements to federal agents. She made her initial appearance on Sept. 27 before U.S. Magistrate Judge James P. O’Hara of the U.S. District Court for the District of Kansas. If convicted of all counts, she faces up to 10 years in prison.
A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division and Special Agent in Charge Charles A. Dayoub of the FBI’s Kansas City Field Office made the announcement.
The ongoing investigation is being conducted by the FBI. Trial Attorneys Rebecca M. Schuman and Dahoud A. Askar of the Justice Department’s Public Integrity Section are prosecuting these cases.
The cases are part of the Justice Department’s ongoing efforts to combat the dangerous and corrosive effects of prison corruption. In addition to the above matters, the Public Integrity Section and the FBI recently obtained convictions against three former North Carolina prison officials who smuggled contraband, including illegal narcotics, into a state facility in exchange for bribe payments. See United States v. Ollie Rose, III, Case No. 4:20-CR-96 (E.D.N.C.); United States v. Kenneth Farr, Case No. 4:21-CR-9 (E.D.N.C.); and United States v. Jeremy Chambers, Case No. 4:21-CR-38 (E.D.N.C.).
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Tsayatoh man charged with federal firearms violationRead the Press Release
ALBUQUERQUE, N.M. – Rumaldo Peshlakai, 40, of Tsayatoh, New Mexico, and an enrolled member of the Navajo Nation, appeared in federal court today for a preliminary hearing on a charge of being a felon in possession of a firearm and ammunition. Peshlakai will remain in custody pending trial.
According to a criminal complaint, on Sept. 23, Peshlakai and Jane Doe allegedly were involved in a domestic dispute at a residence in Tsayatoh. Peshlakai allegedly left the residence with their four children. At the time of the incident, Peshlakai allegedly was in possession of a firearm and ammunition. The children, who were unharmed, were recovered by law enforcement. Peshlakai was arrested on Sept. 24.
Peshlakai was convicted in 2001 of assault by striking, beating or wounding and assault resulting in serious bodily injury, and in 2006 for being a felon in possession of ammunition. As a previously convicted felon, Peshlakai cannot legally possess firearms or ammunition.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Peshlakai faces up to 10 years in prison.
The Gallup Resident Agency of the FBI Albuquerque Field Office and the Navajo Police Department investigated this case with assistance from the FBI Phoenix Field Office, New Mexico State Police, Navajo Police Department, McKinley County Sheriff's Office and Bernalillo County Sheriff's Office. Assistant U.S. Attorney Thomas Aliberti is prosecuting the case.
Three Plead Guilty to Conspiracy to Defraud Financial Institutions and Other Credit IssuersRead the Press Release
RALEIGH, N.C. – Shawn Franklin, Anthony Maryland, and Sabrina Wiggins Branch pleaded guilty today to defrauding financial institutions and other lenders by using synthetic identities to obtain credit cards and consumer loans with no intention of payment. All three individuals were living in the Eastern District during the multi-year conspiracy.
According to court documents and the government’s factual representations in open court, Franklin, age 48, began using synthetic identities in 2012. By coupling his own name and date of birth with a nine-digit number that looked like a social security number, Franklin created a new credit profile, otherwise known as a Credit Privacy Number (CPN). Individuals, like Franklin, with poor credit scores built fresh credit histories by adding a CPN as an authorized user to credit accounts belonging to other individuals with good credit scores. These “trade lines” enhanced the CPN’s creditworthiness, scamming lenders and credit card issuers into believing the CPN applicants have the ability and intent to pay-off indebtedness. Individuals using CPNs, however, lack the ability or intent to pay-off the loans and credit card balances.
Franklin had been a NC Medicaid provider. Ten of the names and SSNs he used to obtain credit belonged to actual NC Medicaid recipients. Franklin obtained fictitious NC driver’s licenses in these individuals’ names, bearing images of himself. With respect to credit cards, Franklin maximized the fraud proceeds by making bogus payments to the issuers. Such payments were immediately credited, restoring the credit limit. Before the credit issuer received notification that the payments were bogus, Franklin and others quickly made additional charges, resulting in significant losses.
Maryland, age 48, and Branch, age 39, used synthetic identities created in their own names by Franklin. Maryland obtained credit cards and consumer goods. Wiggins obtained credit cards and financed the purchase of two vehicles with CPNs.
Branch also conspired with Franklin to generate cash with the fraudulently obtained credit cards. They ran approximately $650,000 in fictitious charges through merchant accounts associated with her retail store in Wilmington’s Independence Mall. Branch paid Franklin his share of the proceeds in cash. Records showed she withdrew cash in amounts less than $10,000 to avoid the filing of currency transaction reports.
All three individuals pleaded guilty to Conspiracy to Commit Bank and Wire Fraud and faces a maximum penalty of 30 years in prison when sentenced. Franklin also pleaded guilty to Aggravated Identity Theft for his use of the names and personal identifiers of ten NC Medicaid recipients. He faces an additional mandatory two years in prison, consecutive to any other term imposed.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after Magistrate Judge James E. Gates accepted the plea. The Federal Bureau of Investigation, United States Secret Service, United States Social Security Administration, and the North Carolina State Bureau of Investigation are investigating the case and Assistant U.S. Attorney Susan B. Menzer is prosecuting the case.
Teetso Man Sentenced to 5 Years for ArsonRead the Press Release
PHOENIX, Ariz. – On Tuesday, Nevale Roanhorse, 39, of Teetso, Arizona, was sentenced by U.S. District Judge Diane J. Humetewa to five years in prison, followed by five years of supervised release. Roanhorse previously pleaded guilty to Arson.
On July 3, 2020, Roanhorse broke into a neighbor’s home on the Navajo Nation. Once inside, he started several fires that eventually consumed the structure. Roanhorse is an enrolled member of the Navajo Nation.
The Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Navajo Nation Division of Public Safety conducted the investigation in this case. Jason Crowley, Assistant U.S. Attorney, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR 20-08084-DJH
RELEASE NUMBER: 2021- 064_RoanhorseStearns County Felon Sentenced to 10 Years in Prison for Possession with Intent to Distribute Methamphetamine, Possession of FirearmsRead the Press Release
MINNEAPOLIS – A Stearns County man was sentenced today to 10 years in prison followed by five years of supervised release for possession with intent to distribute methamphetamine and possession of firearms as a felon.
According to court documents, on November 22, 2019, Samuel Charles Skelton, II, 30, sold a pound of methamphetamine for $4,500 to a confidential informant. On January 16, 2020, after conducting surveillance on Skelton, law enforcement arrested him as he traveled from St. Cloud to the Twin Cities. Following the arrest, law enforcement searched Skelton’s black BMW and found 1.5 kilograms of methamphetamine, digital scales, multiple standard and flip phones, cocaine, $1,665 in U.S. currency, and multiple pills, including gabapentin, cyclobenzapinre, and oxycodone.
According to court documents, on April 13th, 2020, law enforcement was involved in an investigation of a suspected death overdose at a residence in Brook Park, Minnesota. While the investigation was underway, Skelton arrived at the location in a silver BMW. Law enforcement searched Skelton’s vehicle and located a bag containing 14 grams of methamphetamine, three bags containing 9.4 grams of marijuana, four loaded 30 round magazines containing .223 ammunition and one loaded 30 round magazine containing .300 ammunition, and four firearms, including a loaded 9mm Sig Sauer semi-automatic handgun, a High Standard .45 caliber semi-automatic handgun, an Anderson .300 caliber AR-15 style rifle, and a .223 caliber FR AR-15 style rifle.
Skelton has multiple prior felony convictions in Clay and Stearns Counties and therefore is prohibited from possessing firearms or ammunition at any time.
Acting U.S. Attorney W. Anders Folk for the District of Minnesota made the announcement after Senior U.S. District Judge Michael J. Davis sentenced the defendant.
This case was the result of an investigation conducted by the Ramsey County Violent Crime Enforcement Task Force, the East Central Drug and Violent Offenders Task Force, Homeland Security Investigations, and the St. Paul Police Department.
This case was prosecuted by Assistant U.S. Attorney Allen A. Slaughter.
St. Croix Man Arrested and Charged with a Marijuana Grow Operation After an Investigation Revealed 178 Plants Growing at his ResidenceRead the Press Release
St. Croix, USVI – U.S. Attorney Gretchen C.F. Shappert announced today that a St. Croix man was arrested on September 28, 2021, on criminal charges related to his alleged marijuana grow.
According to court documents, Virgin Islands Police Department Officers were dispatched to the residence of Mikey Luke, age 48, of Anna’s Hope, St. Croix, on a report of alleged child abuse. During that investigation, officer observed marijuana plants outside of his house. A subsequent search revealed 178 growing marijuana plants.
Luke is charged with Possession of a Controlled Substance with Intent to Distribute. If convicted, Luke faces a potential of 5 - 40 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Virgin Islands Police Department and the Drug Enforcement Administration are investigating the case.
Assistant U.S. Attorney Daniel H. Huston is prosecuting the case.
A complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
South Pekin Woman Charged with Making a False Statement During the Purchase of a FirearmRead the Press Release
PEORIA, Ill. – Kirstin Sue Jackson, 39, of the 200 block of Ripper Street, Pekin, Ill. was indicted on federal charges on September 21, 2021.
The indictment alleges that in May of 2021, Jackson acquired a firearm from Pekin Gun & Sporting Goods, Inc. after knowingly making a false and fictitious written statement, stating she was the actual buyer of the firearm. Jackson was arrested on September 23, 2021 and is currently in custody of the United States Marshal Service.
If convicted, the maximum statutory penalties for the alleged crimes charged are not more than 5 years imprisonment, 3 years supervised release and a $250,000 fine.
The charge is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant U.S. Attorney Ronald L. Hanna is representing the government in the prosecution.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
South Louisiana Man Sentenced for Enticement of a Minor ChargeRead the Press Release
LAFAYETTE, La. – Alton Leonard Lowe, 33, of Eunice, Louisiana, was sentenced today by United States District Judge Robert R. Summerhays to 135 months (11 years, 3 months) in prison, followed by 10 years of supervised release, for enticement of a minor, announced Acting United States Attorney Alexander C. Van Hook.
According to information presented to the court at the guilty plea hearing in this case, Lowe was arrested in May 2020 in Jefferson Davis Parish on charges of felony carnal knowledge of a juvenile and indecent behavior with a juvenile. Lowe met the victim, who was under the age of 18 years old, through the Grindr app in November 2019. Grindr is a software application that utilizes the internet to allow individuals to meet and communicate. In December 2019, while Lowe was at least 31 years old, he began having sexual relations with the minor victim when he knew the victim was under the age of 18 years old. Lowe and the minor victim accessed the Grindr app via cellular telephones and communicated using the Grindr app and text messaging. Lowe provided the minor victim with a cellular phone and they communicated via text messaging, including what they were going to do the next time they were together.
Lowe pleaded guilty to the charge of enticement of a minor on May 12, 2021 and admitted to using a smartphone to persuade, induce, entice and coerce an individual under the age of 18 to engage in sexual activity while having a criminal offense of felony carnal knowledge of a juvenile and indecent behavior with a juvenile.
The U.S. Department of Homeland Security, Louisiana Bureau of Investigation, Jefferson Davis Parish Sheriff’s Office and Calcasieu Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney John W. Nickel prosecuted the case.
This case is part of Project Safe Childhood (PSC), a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. PSC is part of the Department’s focus on reducing the incidence of sexual exploitation of children by directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement to promote community action and public awareness and to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. To learn more about Project Safe Childhood, go to www.justice.gov/psc.
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Self-Described Member of “Boogaloo Bois” Pleads Guilty to RiotRead the Press Release
MINNEAPOLIS – A Texas man pleaded guilty today to a federal riot charge in connection to the 2020 civil unrest, announced Acting U.S. Attorney W. Anders Folk.
According to court documents, Ivan Hunter, 24, admitted to traveling from San Antonio, Texas to Minneapolis with the intent to participate in a riot. Hunter is a self-described member of the Boogaloo Bois, a loosely connected group of individuals who espouse violent anti-government sentiments. The term “Boogaloo” itself references an impending second civil war in the United States and is associated with violent uprisings against the government.
On the night of May 28, 2020, Hunter was captured on video discharging 13 rounds from an AK-47 style semiautomatic rifle into the Minneapolis Police Department’s Third Precinct building. At the time of the shooting there were other individuals believed to be looters still inside the building. Law enforcement recovered from the scene discharged rifle casings consistent with an AK-47 style firearm.
According to court documents, upon returning to Texas, Hunter made various statements on social media describing the violence in which he engaged in Minneapolis. On June 3, 2020, officers with the Austin Police Department conducted a traffic stop on a pick-up truck for numerous traffic violations. Hunter was one of three occupants in the vehicle. Hunter, the front seat passenger, had six loaded magazines for an AK-47 style assault rifle affixed to a tactical vest he was wearing. Officers found three semi-automatic rifles on the rear seat of the vehicle, one loaded pistol in plain view next to the driver’s seat, and another loaded pistol in the center console. Several days after the traffic stop, federal agents became aware of Hunter’s online affiliation with Boogaloo Bois member Steven Carrillo, who has been charged in the Northern District of California with the May 29, 2020, murder of a Federal Protective Service Officer in Oakland, California.
This case is the result of an investigation conducted by the FBI’s Joint Terrorism Task Force, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
This case is being prosecuted by Assistant U.S. Attorney Andrew R. Winter, and Trial Attorneys George Kraehe and Felice John Viti of the National Security Division's Counterterrorism Section.
Santa Ana Man Arrested for Sexual Exploitation and Online Enticement of a ChildRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Marcos Lucero, 30, of Santa Ana, charging him with sexual exploitation of a child, receipt of child pornography, and coercion and enticement, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, between Aug. 13 and 19, 2021, Lucero asked an 11-year-old girl for explicit pictures, and she sent them to him via email. Lucero continued communicating with her when unbeknownst to him, an undercover law enforcement agent took over the minor victim’s account. Lucero suggested meeting up for sex, and traveled from Santa Ana to Fresno to have sex with the 11-year-old on Sept. 15, 2021.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Roger Yang is prosecuting the case.
If convicted, Lucero faces a maximum statutory penalty of 30 years in prison and a $250,000 fine for sexual exploitation of a child, and a maximum of life in prison and a $250,000 fine for the coercion and enticement charge. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Sanford Man and South Portland Woman Sentenced for Distribution of Fentanyl Resulting in DeathRead the Press Release
PORTLAND, Maine—A Sanford man and a South Portland woman were sentenced today in federal court for distributing fentanyl resulting in the death of another individual, Acting U.S. Attorney Donald E. Clark announced.
Chief U.S. District Judge Jon D. Levy sentenced Earl Cormier, 42, to 125 months in prison and three years of supervised release. Judge Levy sentenced Suzanne Cormier, 40, to 10 years in prison and three years of supervised release. Earl Cormier pleaded guilty on January 3, 2019, and Suzanne Cormier pleaded guilty on January 9, 2019.
According to court records, on July 8, 2017, Earl Cormier arranged a drug transaction with another male. Suzanne Cormier acquired the drugs from a supplier and the two traveled together to the Walmart in Biddeford to complete the transaction. Earl Cormier delivered a substance containing fentanyl and acetyl fentanyl along with needles to the male. The male used the substance in the Walmart bathroom and was later discovered unconscious in the bathroom. He never regained consciousness and died on July 19, 2017.
The Biddeford Police Department, the U.S. Drug Enforcement Administration and the Maine Drug Enforcement Agency investigated this case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Sandisfield Man Indicted for Sexual Exploitation of ChildrenRead the Press Release
BOSTON – A Sandisfield man was indicted today on multiple counts of child sexual exploitation offenses.
Brian Hohman, 57, was charged with four counts of sexual exploitation of children and one count of commission of a felony offense involving a minor when required to register as a sex offender. Hohman is currently being held in Connecticut on unrelated state charges and will make an initial appearance in federal court in Springfield at a later date.
According to the indictment, on various dates between October 2018 and July 2020, Hohman employed, used, persuaded, induced, enticed and coerced minors to engage in sexually explicit conduct for the purpose of producing visual depictions of that conduct. The indictment further alleges that during this time period, Hohman committed a felony offense involving a minor while he was a registered sex offender.
The charges of sexual exploitation of children and attempted sexual exploitation of a child provide for a sentence of at least 25 years and up to 50 years in prison, a lifetime of supervised release and a fine of $250,000. The charge of commission of a felony offense involving a minor when required to register as a sex offender provides for a mandatory sentence of 10 years in prison in addition to any sentence imposed for the charges of sexual exploitation of children. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Valuable assistance was provided by the Massachusetts State Police and the State’s Attorney’s Office for the State of Connecticut, Litchfield Judicial District. Assistant U.S. Attorney Catherine G. Curley of Mendell’s Springfield Branch Office is prosecuting the case.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorney’s Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
San Joaquin County Man Sentenced for Selling Drugs on the Dark Web Under the Moniker PhantomlabRead the Press Release
FOR IMMEDIATE RELEASE
Contact: Lauren Horwood
Thursday, September 30, 2021
Public Affairs Officer
EDCA.gov | @EDCAnews
San Joaquin County Man Sentenced for Selling Drugs on the Dark Web Under the Moniker Phantomlab
SACRAMENTO, Calif. — Cody Boyd, 26, of Woodbridge, was sentenced today by U.S. District Judge Troy L. Nunley to three years in prison for conspiracy to distribute and to possess with intent to distribute testosterone, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, in December 2017, law enforcement agents began monitoring PhantomLabs, an online storefront on Dream Market, a dark web sales site. Agents identified Boyd, as the owner and operator of this store, which sold, among other things: anabolic steroids (including testosterone, deca durabolin, oxymetholone (Anadrol), oxandrolone (Anavar), methandrostenolone (Dianabol), and boldenone (Equipoise)), cocaine, Xanax pills, and pound-quantities of marijuana.
PhantomLabs had joined Dream Market on May 27, 2017. Less than 10 months later, on March 23, 2018, it had 620 customer reviews presenting an average satisfaction rating of 4.9 on a five-point scale.
On March 26, 2018, agents executed search warrants at Boyd’s home and business. In total, agents found more than 100 pounds of steroids – at least 1,500 vials of liquid steroids and approximately 10 pounds of powder steroids. They also found approximately 20 pounds of marijuana and 50 Xanax pills. Additionally, agents found more than $26,500 in cash, an AR-15-style rifle registered to him, more than 10 fraudulent drivers licenses bearing Boyd’s photo and false names, various items bearing the PhantomLabs brand logo, packets of suspected butane honey oil, and an electronic money counter. Agents also found a Sig Sauer handgun in Boyd’s truck. At Boyd’s business unit, agents found a digital scale, about 50 U.S. Postal Service parcels, and a folder containing indicia for Boyd and Team Phantom.
Agents seized Boyd’s Ford Shelby GT 350, which he valued at $120,000, about $95,000 in currency and bank accounts, and about 2.2 bitcoins.
This case is the product of an investigation by the Northern California Illicit Digital Economy Task Force (NCIDE), composed of agents from Homeland Security Investigations, the Federal Bureau of Investigation, the U.S. Postal Inspection Service, the Drug Enforcement Administration, and IRS Criminal Investigation. The NCIDE Task Force is a federal task force focused on targeting all forms of dark web and cryptocurrency activity in the Eastern District of California. Assistant United States Attorney Paul Hemesath prosecuted the case.
San Antonio Man Sentenced to 60 Years for Abusing Special Needs ChildrenRead the Press Release
SAN ANTONIO – Today, 76-year-old Paul Charles Zappe III was sentenced to 60 years in prison for production of child pornography.
According to court documents, the San Antonio resident created photos and videos depicting prepubescent children engaged in sexually explicit conduct. Some of the media created by Zappe involved Zappe committing a variety of sexual acts on special needs children under the age of 12.
In addition to the prison sentence, Zappe was ordered to forfeit his house, car, electronic equipment and to pay each of the two victims $81,000.
On June 29, 2021, Zappe pleaded guilty to two counts of producing child pornography.
“The defendant’s egregious abuse of two young children targeted for their special needs is abhorrent,” said U.S. Attorney Ashley C. Hoff. “The defendant preyed upon the most vulnerable in our society for his own sexual gratification. He violated their trust and that of their parents. Our communities cannot tolerate these types of child predators and we will continue to prosecute them to the fullest extent of the law.”
“It is unconscionable that every day, criminals prey upon innocent children by sexually assaulting them and producing child pornography,” said FBI Special Agent in Charge Christopher Combs. “This case is all the more horrific because the subject harmed special needs children. The FBI is committed to finding perpetrators like this one that commit terrible crimes and seeking justice for all who have been victimized.”
The FBI investigated the case with assistance from the Bexar County Sheriff’s Office.
Assistant U.S. Attorney Tracy Thompson prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Republic Man Pleads Guilty to Meth Trafficking After High-Speed ChaseRead the Press Release
SPRINGFIELD, Mo. – A Republic, Missouri, man who led law enforcement officers on a high-speed chase pleaded guilty in federal court today to possessing methamphetamine to distribute.
Heath E. Yarger, 49, pleaded guilty before U.S. District Judge M. Douglas Harpool to one count of possessing methamphetamine with the intent to distribute.
By pleading guilty today, Yarger admitted that he was in possession of approximately 336 grams of methamphetamine when he was arrested on Dec. 21, 2020. A Christian County, Mo., sheriff’s deputy attempted to conduct a traffic stop of Yarger, who was driving a Chevrolet Silverado on Highway CC near Carnegie Road. Yarger failed to yield, however, and a pursuit ensued. Stop sticks were deployed and disabled the two passenger side tires. The pursuit continued onto northbound Highway 160 as Yarger reached speeds of 100 miles per hour and began to swerve and travel in the middle of the roadway, nearly striking multiple other vehicles. The pursuit continued through several residential streets before returning to Highway 160. The pursuit ended near the intersection of Campbell Avenue and Primrose Street in Springfield, Mo. Yarger ran from the vehicle and was arrested.
Officers found a plastic bag that contained approximately 44.2 grams of methamphetamine in Yarger’s left jacket pocket. Officers searched his vehicle and found two plastic bags that contained an approximate total of 291.8 grams of methamphetamine.
Under federal statutes, Yarger is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life 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 Special Assistant U.S. Attorney Cameron A. Beaver. It was investigated by the Christian County, Mo., Sheriff’s Department and the Drug Enforcement Administration.
Readout of U.S. Attorney General Merrick B. Garland’s Meeting with Mexico Attorney General Alejandro Gertz ManeroRead the Press Release
U.S. Attorney General Merrick B. Garland met in Washington, D.C. yesterday afternoon with Mexico Attorney General Alejandro Gertz Manero. The two leaders reaffirmed their commitment to work closely on criminal investigations and prosecutions of cross-border crime, including with regard to narcotics and firearms trafficking, human smuggling and trafficking, and illicit finance and money laundering. The Attorneys General also agreed on the importance of our extradition relationship, and committed to vigorously pursuing the extradition requests pending in each of our countries.
Recognizing that continuing and intensive cooperation between their departments is essential, the Attorneys General agreed to continue their bilateral dialogue on a regular basis to help protect the citizens and communities on both sides of our common border.
Rancho Cordova Man Sentenced to 15 Years in Prison for Sexual Exploitation of a ChildRead the Press Release
SACRAMENTO, Calif. — Tyler Shayne Nelson, 28, of Rancho Cordova, was sentenced today by U.S. District Judge Morrison C. England Jr. to 15 years in prison to be followed by a lifetime term of supervised release for sexual exploitation of a child, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, in June 2018, following a tip concerning child pornography trading, law enforcement officers executed a search warrant on Nelson’s home. During an interview, Nelson stated that he had communicated with underage girls using the Snapchat and Kik apps. On May 27, 2021, Nelson pleaded guilty to the charges and admitted that he had contacted a 12-year-old victim and requested and received explicit pictures of her.
This case was the product of an investigation by the Sacramento Internet Crimes Against Children (ICAC) Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant U.S. Attorney Roger Yang prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Quapaw Man Sentenced to Life in Prison for Sexually Abusing a Native American Minor and Illegally Possessing Parts of Protected EaglesRead the Press Release
A man who portrayed himself as a Native American spiritual counselor was sentenced Thursday in federal court for sexually abusing a Native American minor and for illegally possessing feathers, talons and heads from seven bald eagles and seven golden eagles, announced Acting U.S. Attorney Clint Johnson.
U.S. District Judge John F. Heil III sentenced sexual predator Carl Gene Ortner, 57, of Quapaw, to life in federal prison and ordered him to pay a $100,000 fine.
“The victim in this case and two others bravely came forward and shined a light on Ortner’s criminal behavior,” said Acting U.S. Attorney Clint Johnson. “Today’s life sentence sends a strong message that the sexual abuse of children will not be tolerated.”
“The defendant used wildlife items, in this case eagle feathers, to deceive and harm a child,” said Edward Grace, Assistant Director of the U.S. Fish and Wildlife Service Office of Law Enforcement. “As this investigation shows, wildlife crime may be connected to numerous types of criminal activity, and I am proud that we had a role in this predator receiving life in prison. I would also like to thank the Federal Bureau of Investigation, Bureau of Indian Affairs, Oklahoma Department of Wildlife Conservation, the Ottawa County Sheriff’s Office and the U.S. Attorney’s Office for their assistance with this case. Today’s sentencing sends a strong message that sexual violence will not be tolerated.”
In May 2021, a jury found Carl Gene Ortner Jr. guilty of transportation with intent to engage in criminal sexual activity, sexual abuse of a child in Indian Country, abusive sexual contact in Indian Country, possession of parts of a bald eagle, and possession of parts of a golden eagle.
During trial, Assistant U.S. Attorneys Shannon Cozzoni and Ryan Roberts argued that Ortner fraudulently claimed to be a Native American spiritual counselor. Cozzoni pointed out the defendant portrayed himself as an Indian, yet he had no tribal affiliation. He told several people he was a member of several Tribes, but no Tribe claimed him.
A special agent with the Fish and Wildlife Service testified that investigators discovered feathers and various parts of bald and golden eagles, including heads, talons, and entire wings, at Ortner’s residence. Native Americans consider eagles to be sacred and use the parts in cultural and religious practices. Ortner illegally possessed the feathers and parts.
Further evidence was presented showing that the defendant used his position of influence to groom the victim and force her into sexual relations with him, using her cultural beliefs and vulnerability against her. The victim also had been struggling with losing a loved one, and Ortner used the loss to further groom the victim.
In 2016, Ortner began sexually abusing the minor. While some of the abuse allegedly occurred within state jurisdiction, Ortner also abused the victim on Indian land, which falls within federal jurisdiction. Furthermore, Ortner at one point drove the victim to Joplin, Missouri, to engage in criminal sexual activity with the minor victim. Crossing state lines to engage in illegal activity falls within federal jurisdiction.
Witnesses testified that Ortner threatened to embarrass the victim and the tribe unless she said the sexual assault did not happen. Also testifying for the government were two other women who stated that Ortner also groomed them as minors and sexually abused them.
In the Government’s closing, Roberts called Ortner “a wolf in sheep’s clothing,” stating that he disguised himself as a caring Native American elder to get close to the victims. Then when the time was right, Ortner took advantage of the victims.
The U.S. Fish & Wildlife Service Office of Law Enforcement, Oklahoma Department of Wildlife Conservation, Ottawa County Sheriff’s Department, FBI, and the Bureau of Indian Affairs conducted the investigation. Assistant U.S. Attorneys Ryan Roberts and Shannon Cozzoni prosecuted the case.
Presque Isle Man Sentenced for Conspiring to Distribute MethamphetamineRead the Press Release
BANGOR, Maine—A Presque Isle man was sentenced today in federal court for conspiring to distribute and possess with intent to distribute methamphetamine, Acting U.S. Attorney Donald E. Clark announced.
U.S. District Judge Lance E. Walker sentenced Justin Michaud, 35, to 15 years in prison and five years of supervised release. Michaud pleaded guilty in December 2020.
According to court records, between January 2017 and August 2018, Michaud and other members of the conspiracy distributed large quantities of methamphetamine in northern Maine. Michaud coordinated multi-pound shipments of methamphetamine from sources in Arizona and Colorado to conspirators who distributed it in Aroostook County. Members of the conspiracy sent thousands of dollars in cash to those sources in order to supply their drug trafficking enterprise.
The U.S. Drug Enforcement Administration and the Maine Drug Enforcement Agency investigated this case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Pike County Man Sentenced to 41 Months’ Imprisonment for Drug TraffickingRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 29, 2021, Dimitriy Maltsev, age 41, of Milford, Pennsylvania, was sentenced to 41 months’ imprisonment by U.S. District Court Judge Malachy E. Mannion, for distribution and possession with intent to distribute cocaine.
According to Acting United States Attorney Bruce D. Brandler, federal authorities conducted two controlled multi-gram purchases of cocaine before securing a federal search warrant for Maltsev’s residence in Milford. Upon executing the search warrant, authorities seized 390 grams of cocaine, 10 pounds of marijuana, hashish, liquid THC, psilocybin mushrooms, $30,000 in cash, drug packaging materials, and a .357 caliber Smith & Wesson revolver. Maltsev is a Ukrainian citizen residing in the United States as a Permanent Resident.
The case was investigated by the DEA in cooperation with the Pennsylvania State Police and the Pike County (Pennsylvania) Drug Task Force. Assistant U.S. Attorney Todd K. Hinkley is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally based strategies to reduce crime.
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Philadelphia man admits to role in drug trafficking enterpriseRead the Press Release
MARTINSBURG, WEST VIRGINIA – Christian Lamar Goode, of Philadelphia, Pennsylvania, has admitted to his role in a multi-state organized drug trafficking enterprise dubbed the “19th Street Enterprise,” Acting United States Attorney Randolph J. Bernard announced.
Goode, also known as “Lil Chris,” 36, pleaded guilty today to one count of “RICO Conspiracy.” Goode admitted to working with others as a member of the “19th Street Enterprise,” a criminal organization that engaged in acts of violence, robbery, money laundering, mail and wire fraud, providing and selling false identification documents, and drug trafficking. The enterprise operated in West Virginia, Pennsylvania, Maryland, Delaware, and Puerto Rico.
Goode faces up to 20 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The FBI; the Department of Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; the West Virginia State Police; the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative; and the West Virginia Air National Guard investigated. The Eastern District of Pennsylvania U.S. Attorney’s Office and the Kent County Sheriff’s Office assisted.
These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
U.S. Magistrate Judge Robert W. Trumble presided.
Find the related case here: https://www.justice.gov/usao-ndwv/pr/22-people-indicted-drug-trafficking-enterprise-spanned-several-states
Parkersburg Man Sentenced to More than 10 Years in Prison for Federal Firearm and Drug CrimesRead the Press Release
Charleston, W.Va. – Ryan Ashley Williams, 36, was sentenced today to 128 months in prison for federal firearm and drug crimes.
According to court documents and statements made in court, Williams was arrested by law enforcement officers at an apartment on Hall Street in Parkersburg on or about December 1, 2019. Officers located approximately 40 grams of a mixture containing carfentanil, fentanyl, and heroin on Williams. Also on his person were the keys to a safe where officers located approximately eight grams of a mixture containing fentanyl and heroin, approximately 80 grams of methamphetamine, and a semi-automatic pistol. Williams admitted that he intended to distribute these substances to other people, and that he knew he was prohibited from possessing firearms because of a previous felony conviction for first degree robbery with a firearm specification in Wood County Circuit Court.
Williams’ first degree robbery conviction was the result of a March 2012 incident where he robbed a Parkersburg business at gunpoint while wearing a ski mask. Williams ordered all the customers onto the ground and stole approximately $4,000 from the cash register. He was sentenced to a prison term of 20 years, and was under parole supervision as part of that sentence when these federal crimes were committed.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Parkersburg Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Assistant United States Attorney Jeremy B. Wolfe is handling the prosecution. United States District Judge Joseph R. Goodwin imposed the sentence.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00091.
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Owner of Trucking Companies Pleads Guilty to COVID-Relief Fraud, Tax Evasion and Conspiracy in Fatal Gas Tanker ExplosionRead the Press Release
LOS ANGELES – The owner of several Inland Empire-based trucking companies has pleaded guilty to five felony charges, admitting he engaged in an array of criminal conduct, including:
- ordering the illegal repair of a tanker that resulted in an explosion and the death of one his employees;
- committing tax evasion, which included failing to file income tax returns for six years; and
- fraudulently obtaining more than $667,000 in Paycheck Protection Program (PPP) COVID-19 pandemic relief funds while on bond awaiting trial.
Carl Bradley Johansson, 63, of Newport Beach, pleaded guilty late Wednesday to two felony counts in relation to the tank explosion – one count of conspiring to make illegal repairs on the cargo tanks and to defraud the United States Department of Transportation, and one count of welding without required certifications.
Johansson also pleaded guilty to one count of tax evasion, one count of conspiracy to commit bank fraud and one count of bank fraud. Johansson admitted that he committed the bank fraud offenses stemming from the PPP scam while he was on pretrial release in the gasoline tanker explosion case.
The Tanker Explosion Case
Johansson controlled and operated two Corona-based trucking companies: National Distribution Services, Inc. (NDSI), which operated from about 2009 through 2015, and NDSI’s successor company, Wholesale Distribution, Inc. (WDI), which does business as Quality Services. Johansson established NDSI following a 15-month federal prison sentence he served after one of his welders was killed in a similar tanker explosion in 1993. Johansson created WDI to take over NDSI’s operations so he could continue to operate cargo tanks that were ordered out of service after two more welding explosions at NDSI in 2012 and 2014, according to court documents.
Even though NDSI was not certified to conduct in-house welding repairs on its cargo tanks, Johansson and his shop manager – co-defendant Enrique Garcia, 46, of Pomona – discussed directing two NDSI workers to repair a cargo tank on May 5, 2014.
The following day, Garcia issued the welding orders to the employees and the two workers began a welding project on the cargo tank. Because the tank had not been completely purged of its fumes and crude oil, the sparks generated by the welding repair caused an explosion, which killed one worker, seriously injured the other worker, and blew a hole in the roof of the warehouse.
Johansson admitted that, from May 2014 to April 2018, he and other employees of NDSI and WDI conspired to obstruct a federal investigation into the May 6, 2014 explosion by making multiple false statements to local, state and federal officials to conceal the illegal welding repairs, that Johansson controlled NDSI and WDI, and that the deceased and injured employees worked for him. For example, on the day of the fatal explosion, when investigators arrived at NDSI, Johansson identified himself as being a customer service representative with another company and said the welders were employed by an outside tank-repair company.
In August 2014, the Federal Motor Carrier Safety Administration (FMCSA) issued an imminent hazard order – known as an “Out-of-Service Order” – to NDSI, which prohibited the company from operating approximately 37 cargo tanks to haul gasoline or ethanol because the FMCSA determined that those cargo tanks presented safety risks. Nevertheless, Johansson continued to use them to transport gasoline and ethanol.
Furthermore, Johansson admitted that he and NDSI submitted false statements to the FMCSA to have the Out-of-Service Order rescinded by the agency. Johansson signed, under oath, an affidavit that falsely claimed NDSI had never engaged in tank repairs and that Garcia worked for an outside tank-repair company.
To circumvent the FMCSA’s Out-of-Service Order, Johansson, at the end of 2014, converted NDSI to operate under the WDI name. WDI had almost all the same employees and management as NDSI, and it operated out of the same warehouse. WDI continued to violate the Out-of-Service Order through early 2018 by using the prohibited cargo tanks to haul gasoline and ethanol.
As part of the conspiracy and to further conceal his control of NDSI and WDI, Johansson did not file income tax returns for the years 2012 through 2017. Johansson failed to report to the federal government at least $1,174,173 in income from the trucking companies. He used that income to pay for personal expenses – including renting a large home in Corona for at least $12,000 per month and using company accounts to make $200,000 in tuition payments at his children’s private high schools and universities.
In total, Johansson admitted to unlawfully avoiding the payment of at least $298,562 in federal income taxes from 2012 to 2017.
COVID-Relief Fraud
In April 2020, while free on bond in the tanker-related case, Johansson directed another trucking company he controlled, the Ontario-based Western Distribution LLC, to apply for a $436,390 PPP loan. After the loan was funded, Johansson directed Western Distribution in May and June 2020 to immediately spend the PPP funds, largely on non-payroll expenses. Rather than use the funds to keep the company’s employees on staff, Johansson laid off most of the company’s employees, but rehired many of them in late 2020. To create the impression that Western Distribution LLC had spent more of its PPP loan on its payroll than it did, in September 2020 Johansson moved 21 employees from a separate company that Johansson controlled – the Merced County-based Agri-comm Express, Inc. – onto Western Distribution LLC’s payroll, even though those employees never worked for Western Distribution LLC.
In March 2021, Johansson caused Western Distribution LLC to repeat the same fraudulent representations concerning its employee lists and payroll numbers when the company submitted a second PPP loan application, this time for $231,527. The second loan application was also approved.
The total loss in the COVID-relief fraud matter is approximately $667,917.
United States District Judge Virginia A. Phillips has scheduled a May 9, 2022 sentencing hearing, at which time Johansson will face a statutory maximum sentence of 100 years in federal prison.
Also in court Wednesday afternoon, Western Distribution LLC pleaded guilty to one count of conspiracy to commit bank fraud and one count of bank fraud. Under Johansson's direction, the company applied for and received approximately $667,917 in PPP loans that were fraudulently obtained and spent.
NDSI and WDI each pleaded guilty Wednesday to one count of conspiring to make illegal repairs on cargo tanks and defrauding the United States Department of Transportation. NDSI pleaded guilty to an additional count of welding without required certifications.
The three companies are scheduled to be sentenced on May 9, 2022.
Co-defendant Donald Cameron Spicer, 69, of Fullerton, who was the safety manager at Johansson’s companies, pleaded guilty on August 16 to one count of conspiracy to violate federal law by causing illegal repairs on cargo tanks and defrauding the United States Department of Transportation. Spicer was Johansson's safety manager at NDSI and WDI when the welding explosions occurred. Spicer is scheduled to be sentenced on February 14, 2022.
Garcia is scheduled to go on trial on January 18, 2022.
The United States Department of Transportation Office of Inspector General and IRS Criminal Investigation investigated these matters.
Assistant United States Attorneys Matthew W. O’Brien and Joseph O. Johns of the Environmental and Community Safety Crimes Section are prosecuting these cases.
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.
Omaha Residents Charged with COVID Relief FraudRead the Press Release
Acting United States Attorney Jan Sharp announced that an Indictment was unsealed today that charges Tamika R. Cross, age 42, Ronnie E. Cross, age 44, and Davida J. Anderson, age 51, all of Omaha, Nebraska, with Conspiracy to Commit Wire Fraud, Wire Fraud, and Money Laundering.
The Indictment alleges that the defendants each engaged in a scheme to defraud lenders in the Paycheck Protection Program (PPP). The PPP was part of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act that Congress enacted in response to the COVID-19 pandemic. The PPP provided forgivable loans to small businesses so they could preserve jobs and continue paying employees.
The Indictment alleges that these three defendants submitted fraudulent applications for more than $2 million in PPP loans on behalf of businesses that were not in operation, and that they obtained approximately $489,000.00 in PPP loan proceeds. The maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
An Indictment is a charging document that contains one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
This case was investigated by the Internal Revenue Service, Criminal Investigation, and the Federal Bureau of Investigation.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Omaha Man Convicted of Impersonating a Federal OfficerRead the Press Release
Acting United States Attorney Jan Sharp announced that Jeffrey Thomas Ostdiek, 56, of Omaha, Nebraska, was found guilty today following a three-day jury trial in federal court for four counts of impersonating a federal officer. The Honorable Robert F. Rossiter, Jr., scheduled Ostdiek’s sentencing for January 7, 2022, at 11:00 a.m. Ostdiek faces up to six years in prison.
Between October 2016 and at least January 2017, Ostdiek went to multiple locations in the Omaha area claiming to be a Postal Inspector or Postmaster General. Ostdiek wore identification that he made from Postal Service receipts along with a body-worn video camera. On one of these occasions, Ostdiek convinced an actual United States Postal Service employee to accompany him to the Douglas County Courthouse where he demanded to meet with a government official, all under the pretense of being a Postal Inspector investigating a legal matter concerning his brother.
In September 2020, Ostdiek went to multiple locations in the Omaha area claiming to be a United States Marshal. Ostdiek wore a six-pointed star belt buckle along with a body-worn video camera. On one of these occasions, Ostdiek went to a business in Omaha seeking contact information for a former employee. Ostdiek left a note to pass on to the former employee asking her to call “Marshal Thomas.”
This case was investigated by the Omaha Police Department, Douglas County Sheriff’s Office, Sarpy County Sheriff’s Office, United States Marshal Service, and United States Postal Inspection Service.
North Pekin Man Charged with Soliciting an Obscene Visual Depiction of a Minor and Distribution of Child PornographyRead the Press Release
PEORIA, Ill. –Larry Daniel Saal, 53, of North Pekin, Ill., was indicted on September 21, 2021 for allegations related to solicitation of a minor and distribution of child pornography.
The indictment alleges that Saal knowingly solicited material that contains an obscene visual depiction of a minor engaging in sexually explicit conduct, and knowingly distributed child pornography in Tazwell County and elsewhere in the Central District of Illinois.
Saal is currently in custody of the United States Marshal Service.
If convicted, the maximum statutory penalties for the alleged crimes charged are 20-year terms of imprisonment for each count, a $250,000 fine and up to a lifetime term of supervised release. Special assessments also apply.
The charge is a result of an investigation by Washington Police Department and Homeland Security Investigations. Assistant U.S. Attorney Keith Hollingshead-Cook is representing the government in the prosecution.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
The case against Saal was brought as part of Project Safe Childhood, a Department of Justice initiative led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), to marshal federal, state, and local resources to locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Nigerian National Charged with Money Laundering for Investment Fraud ConspiraciesRead the Press Release
BOSTON – A Nigerian national was indicted today in federal court in Boston in connection with allegedly operating an unlicensed money transmitting business to launder the proceeds of online investment fraud schemes.
Tochukwu Abel Edeh, 31, a Nigerian national previously residing in Jacksonville, Fla., was indicted on one count of money laundering conspiracy and one count of conspiracy to conduct an unlicensed money transmitting business. Edeh was previously charged by criminal complaint and has been in custody since his arrest on Sept. 2, 2021.
According to the indictment, Edeh managed used car dealerships and currency transfer services in Texas, Florida and Nigeria. This included a trading company as well as a cryptocurrency and e-commerce firm, both of which were based in Nigeria, through which Edeh exchanged Bitcoin and other cryptocurrencies for profit.
The indictment alleges that in or around 2015, Edeh conspired with others to launder and transmit proceeds of Ponzi-style investment fraud schemes based in Nigeria. Specifically, the schemes purported to offer trading and Bitcoin investing services when, in fact, investor funds were allegedly stolen and later victims’ investments were used to pay purported returns to earlier investors. Edeh allegedly laundered the fraud proceeds using a network of co-conspirators in the United States and using his personal and business accounts in the United States and Nigeria. Edeh, along with his alleged co-conspirators, did not hold money transmitting licenses in their respective states of residents, nor were they registered as money transmitters as required by federal law.
The charge of money laundering conspiracy provides for a sentence of 20 years in prison, three years of supervised release and a fine of $500,000 or twice the value of the laundered funds, whichever is greater. The charge of conspiracy to conduct an unlicensed money transmitting business provides for a sentence of five years in prison, three years of supervised release and a fine of $250,000 or twice the gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Jennifer De La O, Director of Field Operations of U.S. Customs and Border Protection, Boston Field Office made the announcement today. Valuable assistance was provided by the Division of Enforcement at the Commodity Futures Trading Commission. Assistant U.S. Attorney Kriss Basil of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
New Orleans Man Sentenced for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LA – United States District Judge Sarah S. Vance sentenced NICK HELMSTETTER, age 29, of New Orleans, Louisiana, on September 29, 2021 to 46 months in the Bureau of Prisons for violating the Federal Controlled Substances Act, Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(B), and 846, announced U.S. Attorney Duane A. Evans.
According to the court records, HELMSTETTER conspired to possess with the intent to distribute and to distribute 100 grams or more of a mixture or substance containing a detectable amount of heroin. HELMSTETTER admitted to being captured on a Title III wire intercept.
District Judge Vance sentenced HELMSTETTER to the 46 months imprisonment to be followed by four years of supervised release. Judge Vance also ordered that HELMSTETTER pay a $100 mandatory special assessment fee.
This case was investigated by Special Agents of the Federal Bureau of Investigation (FBI). The prosecution is being handled by Assistant United States Attorney David Haller.
New Orleans Man Pleads Guilty to Distribution of Child Sexual Abuse MaterialRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that MICHAEL PAUL PERRILLOUX, age 43, a resident of New Orleans, Louisiana, pleaded guilty today before United States District Judge Carl J. Barbier to Count Four of a four-count Indictment charging him with distribution of child sexual abuse material (CSAM), including prepubescent children, in violation of 18 U.S.C. 2252(a)(2).
According to court documents, in about November 2020, Special Agents with the Federal Bureau of Investigation (“FBI”) executed a search warrant at PERRILLOUX’s New Orleans-area residence after receiving a tip that PERRILLOUX had uploaded images and videos depicting the sexual exploitation of children to an online, cloud-based file storage account. Agents seized numerous electronic devices belonging to PERRILLOUX. A subsequent review of the devices revealed that between at least 2017 and 2020, PERRILLOUX uploaded images and videos depicting the sexual exploitation of children via a computer and the internet to one or more online, cloud-based file storage accounts under his control. PERRILLOUX obtained, uploaded, and catalogued thousands of digital files (i.e., images and videos) depicting the sexual exploitation of children. The Government would further establish through the introduction of forensic digital evidence that PERRILLOUX sometimes received payments in exchange for distributing depictions of his collection of CSAM by transmitting electronically a link to one of more of his online file storage accounts. Specifically, on or about September 10, 2018, PERRILLOUX received approximately $200 from Person 1 in exchange for PERRILLOUX providing Person 1 a link to an online file storage account under PERRILLOUX’s control that contained images and videos depicting CSAM.
Additionally, a review of PERRILLOUX’s electronic devices revealed that PERRILLOUX engaged in sexually suggestive online conversations with individuals, including minors, while pretending to be either a female or a younger male. During the conversations, PERRILLOUX requested that the minors either engage in sexually explicit conduct or take and send him sexually explicit pictures and videos.
PERRILLOUX faces a mandatory minimum term of imprisonment of five (5) years and a maximum term of imprisonment of twenty (20) years. PERRILLOUX also faces a lifetime of supervised release, up to a $250,000 fine, and a mandatory $100 special assessment fee. PERRILLOUX can be required to register as a sex offender and may also be ordered to pay restitution to the victims of his crime. Sentencing has been scheduled before Judge Barbier for January 6, 2022.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
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New Orleans Arsonist Sentenced to 168 Months ImprisonmentRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that ARCHIE MORRIS, age 43, of New Orleans, was sentenced on September 28, 2021 for five counts of arson, in violation of Title 18, United States Code, 844(i).
According to court documents, ARCHIE MORRIS used gasoline and Molotov cocktails to start five fires at an occupied apartment in New Orleans, Louisiana. On or about April 2, 2018, at two different times of the day, ARCHIE MORRIS started fires at this apartment. Then on or about April 7, 2018, ARCHIE MORRIS set fire to this residence at three different times of the day.
U.S. District Judge Jay C. Zainey sentenced MORRIS to serve 168 months in prison, to be followed by three (3) years of supervised release. Judge Zainey also imposed a $500 mandatory special assessment fee.
U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the New Orleans Fire Department, and the New Orleans Police Department in investigating this matter. The case was prosecuted by Assistant U.S. Attorney Maria M. Carboni.
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New Haven Man Sentenced to 5 Years in Federal Prison for Gun OffenseRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that ERICK E. GOMEZ, JR., 28, of New Haven, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 60 months of imprisonment, followed by five years of supervised release, for possession of a firearm in furtherance of a drug trafficking crime.
According to court documents and statements made in court, on April 3, 2020, Gomez fled from his car after he was involved in a car accident in Woodbridge. A search of the car revealed a loaded .380 semi-automatic pistol, 15 baggies of crack cocaine and 12 folds of heroin and fentanyl. Gomez, who was on state probation, was subsequently charged with state offenses stemming from this incident, and another incident in April when he was found in a car with a convicted felon and a firearm. On July 31, 2020, Gomez, who was released on bonds in both of his state cases, was arrested on related federal charges. At the time of his arrest he possessed quantities of crack cocaine, heroin/fentanyl and methamphetamine.
Gomez has been detained since his federal arrest. On June 9, 2021, he pleaded guilty to one count of possession of a firearm in furtherance of a drug trafficking crime.
Gomez has a criminal history that includes convictions for escape, interfering with arrest, possessing firearms, assault, and possession and sale of narcotics.
This investigation was conducted by the Federal Bureau of Investigation, New Haven Police Department and Woodbridge Police Department. The case was prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan, Peter D. Markle and Tara E. Levens.
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.