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30 September 2021
Cleveland Man Sentenced to 57 Months After Conviction of Felon in Possession of a FirearmRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that Darryl Borden, 43, of Cleveland, was sentenced today by Judge Patricia A. Gaughan to 57 months imprisonment after Borden pleaded guilty in May of 2021 to being a felon in possession of a firearm.
According to court records, on July 20, 2020, Cleveland Police Officers responded to a residence after a woman called police, stating that Borden was threatening her with a gun. Officers met the woman outside of the home and were told that Borden was upstairs with a firearm.
Officers entered the residence, announced themselves as police officers, and attempted to search a bathroom. The officers encountered Borden waiting in the bathroom with a weapon drawn and pointed. Borden fired his weapon, and one officer returned fire. One police officer was injured during the gunfire exchange.
Cleveland Police SWAT responded to the scene for a barricaded suspect, and Borden was taken into custody. A handgun with five spent rounds and one live round was recovered from inside the bathroom.
Borden is prohibited from possessing a firearm due to previous convictions for robbery, burglary and sexual battery in the Cuyahoga County Common Pleas Court.
Borden’s sentence will run consecutively with his sentence in the Cuyahoga County Common Pleas Court.
This case was investigated by the ATF and the Cleveland Division of Police. This case is being prosecuted by Assistant U.S. Attorney Scott Zarzycki.
Chillicothe Man Sentenced to 20 years in Prison for Methamphetamine ConspiracyRead the Press Release
Peoria, Ill. – A Chillicothe, Ill., man, Jayson McNulty, 44, of the 300 block of South Ridgewood has been sentenced to 20 years in federal prison, to be followed by 10 years of supervised release, for conspiracy to distribute and possess with intent to distribute methamphetamine.
At McNulty’s sentencing hearing, U.S. District Court Judge Joe Billy McDade found that McNulty had trafficked over 4.5 kilograms of ice methamphetamine from approximately April 2018 through his arrest in December 2019. Court documents reveal that McNulty was receiving large amounts of methamphetamine through the U.S. Postal Service. One of the packages sent to McNulty was intercepted by law enforcement and contained approximately 1 pound of ice methamphetamine. The ice methamphetamine mailed to McNulty was determined to have at least 96% purity levels.
During sentencing, U.S. District Court Judge Joe Billy McDade noted that McNulty was one of the biggest meth dealers in the area. Judge McDade also noted McNulty had a troubled childhood and a lengthy criminal history. Court records reveal McNulty had previously been convicted in 2006 of possession of anhydrous ammonia with the intent to manufacture in Logan County, Ill. and was sentenced to impact incarceration through Illinois Department of Corrections.
McNulty pleaded guilty on April 7, 2021, and he has been in the custody of the U.S. Marshals since his arrest in December 2019.
“This sentence serves as an excellent example of collaboration between federal, state, and local law enforcement to jointly combat the heightened threat of high-purity methamphetamine in our communities,” said Acting U.S. Attorney Douglas J. Quivey. “Sentences like this serve as a reminder to all drug dealers that we remain dedicated to disrupting illegal drug trafficking, committed using the mail or otherwise, and that the price to pay is simply not worth it.”
The Drug Enforcement Administration investigated the case with assistance of the U.S. Postal Inspection Service, Pekin Police Department, Peoria Multi-County Enforcement Group (P-MEG), and Chillicothe Police Department. Assistant United States Attorneys Darilynn J. Knauss and Katherine G. Legge represented the government in the prosecution.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF)’s National Methamphetamine Strategic Initiative, spearheaded locally out of the Pekin Police Department. The primary goal of this initiative is to address methamphetamine trafficking and its attendant consequences by using a coordinated, multi-agency approach targeting the highest levels of drug trafficking leadership. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Child Sex Trafficker Sentenced to Serve Three Decades in Federal PrisonRead the Press Release
OKLAHOMA CITY – Earlier this week, GERMAINE COULTER, SR., 48, of Oklahoma City, was sentenced to serve 30 years in federal prison for child sex trafficking and conspiracy to commit child sex trafficking, announced Robert J. Troester, Acting U.S. Attorney for the Western District of Oklahoma. Elizabeth Andrade, 39, of Edmond, was previously sentenced to serve 78 months in federal prison for her role in the sex trafficking conspiracy.
"In addition to recruiting young girls to exploit them to engage in commercial sex work, the defendants coached the girls on how to perform sex acts and made threats of violence to control them," said Acting U.S. Attorney Troester. "It is impossible to restore the innocence that was so callously stolen away from these young and vulnerable victims. Our hope is that this 30-year prison sentence will ensure that Mr. Coulter will never be able to exploit another child and will bring some solace to the victims in their recovery. I commend the FBI and Oklahoma City Police Department who diligently investigated this case, the Oklahoma County District Attorney’s Office who provided valuable assistance, and the prosecutors who held these defendants accountable."
"Crimes against children are some of the most reprehensible acts that law enforcement is determined to prevent and punish once they occur. The FBI and our law enforcement partners work together to identify and rescue victims as well as bring their exploiters to justice," said Melissa Godbold, FBI Special Agent in Charge of the Oklahoma City Field Office. "It is because of this partnership that Mr. Coulter is now facing a lengthy sentence for his crimes. Today’s sentence takes a dangerous man off the street, and will hopefully bring a measure of closure and comfort to those he victimized."
On November 13, 2018, a grand jury returned a three-count superseding indictment against Coulter, a/k/a "Slim." Count One charged him with a child-sex-trafficking conspiracy in which he recruited and attempted to recruit three girls—aged 15 and 17—to provide them to men for commercial sex. Counts Two and Three charged him with substantive offenses of trafficking girls identified as Jane Doe 1 and Jane Doe 3.
At a jury trial in July 2019, a federal jury heard testimony that in January and February 2018, Coulter recruited three girls under 18 to perform commercial sex work. Coulter told one girl she needed to make $1,000 per day, all of which would go to him, and, if she was successful, he would buy her a car, get her an apartment, and get her business cards after she turned 18. He directed his victims to call him “Daddy.” The jury also heard evidence that Coulter used violence and direct and indirect threats of violence to control the girls. Working with co-conspirator Elizabeth Andrade, he sent photos of one underage girl to prospective customers. The jury heard that Andrade began taking one of the girls with her on commercial sex appointments, where the girl performed sex acts for money. Between January 27, 2018, and February 19, 2018, Coulter and Andrade trained and directed the girl how to interact and perform sex acts with customers and how to convince her mother to let her stay with them. The jury convicted Coulter on Counts One and Two. It was unable to reach a unanimous verdict on Count Three.
In July 2018, Andrade, a/k/a "Beth," "Bobbi Monroe," "Tiffany," and "Porsche," pleaded guilty to a one-count superseding information that charged conspiracy to commit child sex trafficking. In December 2019, Chief U.S. District Judge Timothy D. DeGiusti sentenced Andrade to serve 78 months in federal prison for her role in the conspiracy.
On September 28, 2021, Judge DeGiusti sentenced Coulter to serve 30 years in federal prison, followed by a lifetime of supervised release on each count of conviction. The sentence consists of 360 months as to Count 1 and 360 months as to Count 2, to be served concurrently. In imposing the sentence, Judge DeGiusti noted that nature and circumstances of the sex trafficking conspiracy, the need to adequately deter related conduct, and the need to protect the public from further crimes of Coulter. Coulter has been in custody since March 8, 2018.
This case is the result of an investigation by the Federal Bureau of Investigation’s Oklahoma City Field Office and the Oklahoma City Police Department, with assistance from the Oklahoma County District Attorney’s Office. Assistant U.S. Attorneys K. McKenzie Anderson and Jessica Perry are prosecuting the case.
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section of the Department of Justice, 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.
Reference is made to court filings for further information.
Chicago Man Charged in Federal Court with Engaging in Unauthorized Trading That Caused $30 Million in LossesRead the Press Release
CHICAGO — A Chicago trader was charged today with securities fraud for allegedly engaging in unauthorized speculative bond trading that cost his employer and others more than $30 million.
KEITH WAKEFIELD, 48, of Chicago, was charged in a criminal information with one count of securities fraud. The charge is punishable by a maximum sentence of 20 years in federal prison. Arraignment in U.S. District Court in Chicago has not yet been set.
The charge was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorney John D. Mitchell.
The U.S. Securities and Exchange Commission, which filed a civil enforcement lawsuit against Wakefield, provided valuable assistance.
According to the charge, Wakefield worked as the head of fixed income trading in the Chicago office of a broker-dealer. From 2017 to 2019, Wakefield knowingly and fraudulently engaged in unauthorized speculative trading in U.S. Treasury bonds using his employer’s trading accounts, causing more than $30 million in losses to the employer and its counterparties, the information states. Wakefield attempted to conceal the unauthorized trades and losses by entering fake off-setting trades into a clearing broker’s order system, creating the false impression that he had profitably traded through a different clearing broker, the charge alleges.
In addition to the trading scheme, Wakefield allegedly embezzled approximately $820,000 from the employer by falsifying the company’s books and records to create fake commissions that Wakefield knew were not actually owed to him.
The public is reminded that an information is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Charleston Woman Sentenced to Prison for Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – A Charleston woman was sentenced yesterday to 12 months in prison for distribution of heroin and fentanyl.
According to court documents and statements made in court, Drema Setliff, 37, sold a fentanyl and heroin mixture to an individual in South Charleston on December 10, 2017, which resulted in the individual dying from a drug overdose.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Metropolitan Drug Enforcement Network Team (MDENT) and the Charleston Police Department.
Senior United States District Judge John T. Copenhaver, Jr., imposed the sentence. Assistant United States Attorney Monica Coleman handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-00077.
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Cattle Broker Sentenced to Prison for Wire Fraud, Ordered to Pay $2.1 Million in RestitutionRead the Press Release
MACON, Ga. – A Georgia cattle broker was sentenced to prison and was ordered to pay millions in restitution after he pleaded guilty to wire fraud in a scheme defrauding an investor of $2.1 million.
Collis Robert Todd, aka C. Robert Todd, aka Collis Todd, aka Robert Todd, aka Robert C. Todd, 65, of Jesup, Georgia, was sentenced to serve 33 months in prison to be followed by three years of supervised release by U.S. District Judge Marc Treadwell on Wednesday, Sept. 29, after previously pleading guilty to wire fraud. In addition, Todd was ordered to pay $2,137,000 in restitution to the victim. There is no parole in the federal system.
“The U.S. Attorney’s Office will always seek to hold investment predators accountable for their criminal actions, ” said Acting U.S. Attorney Peter D. Leary. “The FBI and our law enforcement partners are doing everything in our power to protect individuals and businesses from fraud and harm.”
“Todd is paying the price for deceiving an investor into believing his money would make legitimate profits instead of going directly into Todd’s pockets,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “It is a warning to investors to be very careful where they entrust their money and a warning to investment predators that the FBI is committed to uncovering fraud no matter how clever they think their schemes are.”
Todd worked as a cattle and corn broker from 2008 through 2017. During that time, Todd entered into an agreement with an investor who supplied the money used to execute deals negotiated and conducted by Todd. The general understanding was that profits would be split evenly. Todd did not invest the money as promised in certain deals, instead using it for his own purposes. Todd sometimes sent money back to the investor representing the amount to be profit, which was not true. This was done to disguise Todd’s theft and to keep the investor investing in current and future deals. Todd’s deceit continued when he made a phone call on Nov. 6, 2016, to the investor’s business manager, claiming he would sell cows and calves he previously purchased on behalf of the investor, with the investor’s money, as part of the “Big Cow” deal and transmit the proceeds to the investor. In fact, the cows and calves did not exist. The investor lost $2,137,000 in the scheme.
The case was investigated by the FBI.
Assistant U.S. Attorney Paul McCommon prosecuted the case.
Butte meth trafficker sentenced to more than four years in prisonRead the Press Release
MISSOULA — A Butte man who admitted to conspiring with others to traffic pounds of methamphetamine in the community was sentenced today to four years and six months in prison to be followed by five years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
Charles David Clement, 36, pleaded guilty in June to conspiracy to possess with intent to distribute meth.
U.S. District Judge Dana L. Christensen presided.
The government alleged in court documents that law enforcement learned Clement was trafficking drugs with others in Montana. In March 2019, officers searched a package that contained 1,579 grams, or about 3.4 pounds, of meth and was addressed to an individual in Butte. The individual was enlisted to accept the package of meth for Clement. The investigation found numerous text messages, including messages about drug distribution, between Clement and the individual accepting the package. Clement paid for the drugs he received by sending cash payments back to Bakersfield, California, including $12,000 in cash that law enforcement seized.
Assistant U.S. Attorney Ryan G. Weldon prosecuted the case, which was investigated by the Montana Division of Criminal Investigation, Drug Enforcement Administration, Butte Silver Bow Law Enforcement, U.S. Postal Inspection Service and Homeland Security Investigations.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Bridgeport Man Who Sold Fentanyl Involved in Overdose Death Sentenced to More Than 11 YearsRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that JOHN MATTHEWS, also known as “Jay” and “Gotti,” 36, of Bridgeport, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 136 months of imprisonment, followed by three years of supervised release.
According to court documents and statements made in court, on November 1, 2018, a 35-year-old man in Trumbull died of a drug overdose. The investigation revealed that Matthews sold the victim the fentanyl that caused the victim’s death.
On November 2, 2018, law enforcement investigators, posing as the overdose victim and using the victim’s cell phone, placed an order for narcotics from Matthews. Matthews was arrested after he arrived at the victim’s residence to complete the transaction. At the time of his arrest, Matthews possessed 247 wax folds of fentanyl and $1,828 in cash.
Matthews’ criminal history includes multiple drug-related convictions, and he was on state parole when he distributed the fentanyl involved in the overdose death.
Matthews has been detained since in state custody since February 11, 2019, after he was arrested and charged with stealing a firearm, criminal weapon possession and possession of controlled substances offenses. On June 18, 2021, he pleaded guilty in federal court to conspiracy to distribute and to possess with the intent to distribute heroin and fentanyl.
Judge Thompson ordered that the 136-month sentence is in addition to the approximately 32 months Matthews has served in state custody.
This investigation was conducted by the Drug Enforcement Administration, Trumbull Police Department and Bridgeport Police Department. The case was prosecuted by Assistant U.S. Attorney Natasha Freismuth.
Boerne Man Sentenced for Ponzi Scheme with over $7.4 M in LossesRead the Press Release
SAN ANTONIO – A Boerne man was sentenced yesterday to 135 months in prison and ordered to pay $7,424,927.10 in restitution for running a Ponzi scheme.
According to court documents, Victor Farias, 48, owned and operated Integrity Aviation & Leasing (IAL). Farias used IAL to perpetuate a Ponzi scheme resulting in net losses to victims of over $7.4 million. Farias persuaded victims to invest in IAL by misrepresenting that investors’ funds would be used to purchase aircraft engines and that the aircraft engines would be leased to airlines for profit. In addition, Farias also told investors he would not pay himself a salary or commission.
Instead, Farias bought one aircraft engine and sold it shortly thereafter, making no profit for investors. He used investors’ money to pay himself a salary, commissions, and personal expenses. He also paid out false investment returns to prior investors and financed the construction of the Fair Oaks Country Store, a convenience store unrelated to the IAL investment.
On January 27, 2021, Farias pleaded guilty to one count of wire fraud.
“Through deception and greed this defendant stole from his victims, some of whom were retired public servants. He deprived many of these victims of the restful retirement they worked all their lives to achieve,” said U.S. Attorney Ashley C. Hoff. “We hope the Court’s sentence provides some measure of justice to the victims and sends a strong message to other fraudsters that their criminal activities will not be tolerated in our community.”
“The defendant betrayed the trust of almost 90 people as he swindled them out of their retirement savings to finance his fraudulent investment scheme and his luxurious lifestyle,” said FBI Special Agent in Charge Christopher Combs, San Antonio Division. “This case is all the more repugnant because so many of the victims were first responders who had spent their careers putting their lives on the line to protect our community.”
The FBI investigated the case.
Assistant U.S. Attorney Matt Harding prosecuted the case.
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Bismarck Man Sentenced to 30 Years in Federal Prison for Sexual Exploitation of A MinorRead the Press Release
HOT SPRINGS, ARK. – Aaron Edward Briggs, 28, formerly of Morgan City, Louisiana, was sentenced yesterday to thirty (30) years in prison without the possibility of parole on one count of Sexual Exploitation of a Minor via the Production of Child Pornography. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearing in the U.S. District Court in Hot Springs.
According to court documents, in 2019, Briggs met and began a sexual relationship with a 15-year-old female. During the course of the sexual relationship, Briggs sent a picture of his genitals to the minor via Facebook Messenger. During a subsequent online conversation, Briggs requested that the minor take and send him sexually explicit images of herself. The evidence recovered during the investigation revealed numerous sexually explicit images of the minor that were sent to Briggs.
Acting U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The Federal Bureau of Investigations, Little Rock Division investigated the case.
Assistant U.S. Attorney Kyra Jenner prosecuted the case for the United States.
This case was prosecuted 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.
Belcourt, ND Man Sentenced to 36 ½ Years in Federal Prison for Aggravated Sexual Assault of a Minor ChildRead the Press Release
FARGO - Acting United States Attorney Nicholas W. Chase announced that U.S. District Court Chief Judge Peter D. Welte sentenced Adam Jason Poitra, age 40, Belcourt, ND, to 36 ½ years in federal prison for Aggravated Sexual Assault of a 11-Year-Old Minor Child. Chief Judge Welte also sentenced Poitra to lifetime supervised release and a $100.00 special Assessment.
Investigation revealed that between September 2017 and May 2018, Adam Jason Poitra sexually abuse an eleven-year-old child countless times while in Belcourt, ND.
This case was investigated by the Bottineau County Sheriff’s Office, Northern Plains Children’s Advocacy Center and the Federal Bureau of Investigation and Assistant United States Attorney Matthew Greenly, District of North Dakota and Clayton Solomon, Trial Attorney, Criminal Division, Department of Justice prosecuted the case.
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Avon Man Charged with Child Exploitation OffensesRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, and David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that MICHAEL FERRO, 35, of Avon, has been charged by federal criminal complaint with multiple child exploitation offenses.
Ferro surrendered to law enforcement yesterday. He appeared before U.S. Magistrate Judge Thomas O. Farrish in Hartford and was released on a $100,000 bond.
As alleged in the complaint, on August 18, 2021, Ferro, using the Kik social media application, began chatting in a Kik group with an FBI Online Covert Employee (“OCE”) who was posing as a father of a 12-year-old girl. After Ferro determined that the OCE was engaging in sexual activity with his “daughter,” he sent the OCE a “live photo” depicting the genitals of a child. Ferro then stated that he had more pictures to share, and expressed an interest in meeting the OCE’s daughter to engage in sexual activity. After confirming Ferro’s identity, investigators traveled to Ferro’s residence late in the evening of August 18, informed him of the investigation, and seized his cell phone.
The complaint charges Ferro with sexual exploitation of children, which carries a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 30 years; attempted receipt of child pornography, which carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years; and attempted enticement of a minor to engage in illegal sexual activity, which carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
Acting U.S. Attorney Boyle stressed that a criminal complaint is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation, with the assistance of the Avon Police Department. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Armed Fentanyl Dealer Sentenced to 12 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Virginia Hernandez Covington has sentenced Johnny Ordaz (32, Bradenton) to 12 years in federal prison for possession of fentanyl with the intent to distribute, possession of a firearm in furtherance of a drug trafficking crime, and for possessing a firearm as a convicted felon. The court also ordered Ordaz to forfeit two firearms, 121 rounds of ammunition, and $588 in cash, which are traceable to proceeds of the offenses.
A federal jury had found Ordaz guilty on July 8, 2021.
According to court documents and evidence presented at trial, in September 2019, law enforcement officers stopped Ordaz’s car because he failed to stop at a stop sign and because the car’s window tint was illegally dark. During the traffic stop, officers discovered a firearm with an extended magazine, loaded with 31 rounds of ammunition, wedged between the driver’s seat and the center console. They also seized a bag containing fentanyl from the driver’s side door handle, as well as a digital scale and small clear plastic baggies. The officers also found a bag in the passenger seat that contained another firearm with an extended magazine loaded with 27 rounds of ammunition, 63 rounds of additional ammunition, another digital scale, sandwich bags, and more small clear plastic baggies. They also recovered $588 from Ordaz’s front pocket.
Ordaz was previously convicted of multiple felony offenses, including possession of an unregistered short barrel shotgun, fleeing or attempting to elude a law enforcement officer, and possession of a firearm by a convicted felon. As such he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Manatee County Sheriff’s Office, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Charlie D. Connally.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
American Expatriate in Monaco Pleads Guilty to Filing a False Tax ReturnRead the Press Release
PORTLAND, Ore.—An American expatriate residing in the Principality of Monaco pleaded guilty today in federal court to filing a false tax return.
Kory Merrill Tarpenning, 59, pleaded guilty to making and subscribing a false federal income tax return.
According to court documents, Tarpenning is a marketing consultant and owner of numerous foreign businesses organized in France and Monaco. His primary line of business is a brand consultant to U.S. companies interested in expanding their business operations to Monaco. Tarpenning also owns several Monegasque consulting companies, including Sirius Group SAM and Sirius Sports Marketing.
In 2014, Tarpenning arranged a sponsorship agreement between Association Sportive de Monaco Football Club SA (AS Monaco), a Monegasque professional soccer club, and Nike European Operations. The agreement was valued at as much as €20 million over its five-year term. Subsequently, AS Monaco executed a contract with Sirius Group to pay Tarpenning a 9% commission on cash payments from Nike and a 6% commission on athleticwear ordered by the team. Between 2014 and 2018, AS Monaco paid Tarpenning at least €2.1 million.
Tarpenning transferred the income from deals with AS Monaco and other companies to joint personal bank accounts in Monaco and the U.S. He used the proceeds to purchase a second home in Eugene, Oregon and to pay for his children’s Monegasque private school. In tax years 2014 through 2018, Tarpenning failed to report more than $1.4 million in wages and business income.
During this same time, Tarpenning also failed to report substantial dividend income from other unrelated business ventures, including companies he owned that operated the Nike Store and Starbucks Coffee in Monaco and a brand consulting firm based in Portland. In tax years 2014 through 2018, Tarpenning failed to report more than $1 million in dividend income.
Altogether, from 2014 to 2018, Tarpenning’s underreporting of income caused a tax loss to the IRS of more than $670,000.
On August 25, 2021, Tarpenning was charged by criminal information with making and subscribing a false federal income tax return.
Tarpenning faces a maximum sentence of three years in prison; a $250,000 fine or twice the gross gains or losses resulting from his offense, whichever is greater; and one year of supervised release. He will be sentenced on January 6, 2022 before U.S. District Court Judge Michael W. Mosman.
As part of the plea agreement, Tarpenning has agreed to pay $670,851 in restitution to the IRS.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by IRS-Criminal Investigation. Assistant U.S. Attorney Meredith D.M. Bateman is prosecuting the case.
Alleged California Kingpin Arrested and Charged with Directing Drug Conspiracies that Brought Bulk Quantities of Methamphetamine into Oklahoma and MissouriRead the Press Release
An alleged drug kingpin charged with directing a continuing criminal enterprise and organizing and directing at least three separate methamphetamine conspiracies in Oklahoma and Missouri was arrested this week in Bakersfield, California, announced Acting U.S. Attorney Clint Johnson.
“Today, a 13-count federal indictment was unsealed charging Luis Alfredo Jacobo with leading a continuing criminal enterprise that brought an estimated 2,000 pounds of methamphetamine into the Northern District of Oklahoma and southwestern Missouri for redistribution,” said Acting U.S. Attorney Clint Johnson. “I appreciate our law enforcement partners that brought this case forward for prosecution. Assistant U.S. Attorney Tom Duncombe will seek to hold Jacobo and his coconspirators accountable in federal court.”
“Methamphetamine continues to be one of the top drug threats in Oklahoma,” said Eduardo Chavez, Special Agent in Charge of the DEA Dallas Field Division, which oversees operations in Oklahoma. “Simply put, methamphetamine destroys families across the state and within Oklahoma’s Indian Country. Our communities have felt the horrible effects of drug abuse and addiction. DEA Oklahoma is committed to make our communities safer and hold those accountable who push these deadly substances across our great nation.”
“Meth is an insidious drug that continues to take lives and devastate families throughout Oklahoma,” said Oklahoma Bureau of Narcotics Director Donnie Anderson. “My agency is committed to working along-side our state, federal and local law enforcement partners to target, apprehend and prosecute these drug traffickers who threaten the safety and security of our citizens.”
Jacobo was arrested by federal agents Monday. Also arrested were Kelly Wayne Bryan and Curtis Anthony Jones in Missouri, who were charged as part of one of Jacobo’s alleged drug conspiracies. The indictment also charged Jesus Valdez Martinez and Antonio Cervantes Garcia as Jacobo’s coconspirators. Martinez is in federal custody for a related case in Montana. Garcia is in federal custody for a related case in the Western District of Oklahoma.
The superseding indictment was unsealed today, by order of the U.S. District Court.
Jacobo, using his Mexican sources of supply and Bakersfield as a base of operations, is alleged to have directed and organized a methamphetamine enterprise that consisted of at least three distribution conspiracies with three separate groups of individuals in Northeast Oklahoma and Southwest Missouri.
Jacobo allegedly set prices, determined methods of delivery and payment, and approved any suggestions made about the groups’ operations.
According to the indictment, bulk distributors brought the methamphetamine to Bakersfield from Mexico. From there, Jacobo directed that the methamphetamine be sent via U.S. mail to the groups in Oklahoma and Missouri or driven there in vehicles, sometimes in quantities of 50 to 100 pounds at a time. Coconspirators would drive large amounts of cash back to California or would mail cash payments back to Jacobo and to others at Jacobo’s direction. The coconspirators sometimes mailed as much as $100,000 cash at a time from Oklahoma to California as part of the enterprise.
A total of 10 defendants were charged in this second superseding indictment with one or more of the following crimes: Continuing Criminal Enterprise (Count 1); Drug Conspiracy (Counts 2-5); Maintaining a Drug-Involved Premises (Counts 6,7); Interstate Travel to Aid Racketeering (Counts 8,13); Possession of Methamphetamine with Intent to Distribute (Count 9); Possession of Firearm in Furtherance of a Drug Trafficking Crime (Count 10); Possession of Methamphetamine with Intent to Distribute (Count 11); and Possession of Methamphetamine with Intent to Distribute (Count 12).
Defendants charged in the indictment are:
- Luis Alfredo Jacobo, a/k/a “Lokz,” 30, of Bakersfield, California
- Antonio Cervantes Garcia, a/k/a “Tony Garcia,” 33, of Bakersfield, California
- William Donavan Johnson III, 46, of Grove
- Shauni Breanne Callagy, 31, of Grove
- David Scott Chambers, a/k/a "Scott Chambers,” 52, of Springfield, Missouri
- Gene Olen Charles Rast, a/k/a “Charlie Rast," 46, of Elkland, Missouri
- Renee Lynn Haynes, 40, of Bolivar, Missouri
- Jesus Valdez Martinez, a/k/a “Jesse Martinez,” a/k/a “Hostile,” 46, of Bolivar, Missouri
- Kelly Wayne Bryan, 54, of Joplin, Missouri
- Curtis Anthony Jones, 44, of Marshfield, Missouri
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The indictment resulted from an Organized Crime Drug Enforcement Task Force investigation “Operation Pullin Chains.” The case is also related to a 231-pound methamphetamine seizure in October 2020 in Grove, made by the Oklahoma Bureau of Narcotics and Dangerous Drugs. The drugs were found inside a Grove storage unit along with more than $465,000 in cash.
The Drug Enforcement Administration, Oklahoma Bureau of Narcotics and Dangerous Drugs, Bureau of Indian Affairs, City of Miami Police Department, Grove Police Department, Bakersfield Police Department, Kern County Sheriff’s Office, the United States Postal Inspection Service, and the Oklahoma District 13 Drug Task Force are the investigative agencies. Assistant U.S. Attorney Thomas E. Duncombe is prosecuting the case.
Albuquerque woman found guilty in bank robbery trialRead the Press Release
ALBUQUERQUE, N.M. – A federal jury returned a guilty verdict on Sept. 29 against Rhonda Quintana, 39, of Albuquerque, on one count of aiding and abetting and bank robbery. Quintana will remain on conditions of release pending sentencing, which has not been scheduled.
According to a federal indictment and other court records, on March 13, 2018, Quintana drove James Verdream to the Rio Grande Credit Union on 4th Street NW in Albuquerque. Verdream entered the credit union and passed a demand note to a teller. Verdream took money from the teller, returned to the car, and fled with Quintana.
Verdream pleaded guilty on Dec. 27, 2018, and was sentenced to 10 years in prison. Quintana faces up to 20 years in prison.
The FBI investigated the case with assistance from the United Stated Marshals Service. Assistant U.S. Attorneys Paul Mysliwiec and Jaymie Roybal are prosecuting the case.
Alabama man sentenced for impersonating a federal officerRead the Press Release
NEWNAN, Ga. - Jay Diamond, who has a criminal history with over 30 misdemeanor and traffic convictions, has been sentenced on two counts of false impersonation of a federal Air Marshal.
“Flashing a badge and impersonating a federal officer to gain a benefit puts the public and law enforcement officers at risk,” said Acting U.S. Attorney Kurt R. Erskine. “Instead of avoiding a speeding ticket, Diamond ended up with two federal felony convictions and time in prison.”
“Impersonating a law enforcement officer is a serious offense,” said Ronnie Tippett, Special Agent in Charge of DHS OIG’s Atlanta Field Office. “Our office is committed to safeguarding the public from scam artists and individuals seeking to benefit themselves such as Mr. Diamond’s attempt to pose as a Federal Air Marshal.”
According to Acting U.S. Attorney Erskine, the charges and other information presented at trial: On August 23, 2018, Jay Diamond was pulled over by a Troup County Deputy Sheriff for speeding on Interstate 185 in Troup County, Georgia. He was travelling 90 miles per hour in a 70 miles per hour zone. The entire traffic stop was captured on dash cam video.
During the traffic stop, Diamond immediately identified himself as an Air Marshal and a Senior Air Marshal and showed the deputy a fraudulent badge that contained the words “Senior Federal Air Marshal.” When asked for his actual law enforcement credentials, Defendant said he had left them at home.
The deputy believed that Diamond was pretending to be a law enforcement officer to avoid receiving a traffic citation. Diamond also said he had received the fake badge from former President Jimmy Carter, and he tried to show them a photo of himself with President Carter. Diamond’s story changed once he was arrested for falsely impersonating a law enforcement officer.
Diamond admitted that he had been overzealous in calling himself an Air Marshal and “should have just taken the ticket.”
On May 27, 2021, a federal jury returned guilty verdicts on both counts of the first superseding indictment after deliberating for approximately one hour and 30 minutes.
Jay Diamond, a/k/a Larry Allen Dilleshaw, 49, of Phenix City, Alabama, was sentenced by U.S. District Judge Timothy C. Batten, Sr., to approximately one year and five months in prison to be followed by one year of supervised release, and 50 hours of community service. Diamond was initially charged on two counts of false impersonation of a federal officer.
This case was investigated by the Department of Homeland Security - Office of the Inspector General.
Assistant U.S. Attorney Miguel R. Acosta prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
"John Doe" Sentenced for Identity Fraud ChargesRead the Press Release
BOSTON – An individual previously residing in Lawrence who has been living under a false identity was sentenced today in federal court in Boston on charges arising from his use of the name and Social Security number of a U.S. citizen.
An individual referred to as “John Doe” was sentenced by U.S. District Court Judge William G. Young to 40 months in prison and three years of supervised release. On June 4, 2021, Doe pleaded guilty to false representation of a Social Security number, making a false statement concerning a health care benefit program and aggravated identity theft.
Beginning in approximately 2014, Doe used the identity of a U.S. citizen to apply for MassHealth benefits and Massachusetts identification documents, among other things. Between approximately 2014 and 2018, Doe received approximately $25,081 in MassHealth benefits, to which he was not entitled. Doe’s identity remains unknown.
Acting United States Attorney Nathaniel R. Mendell; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; and Phillip M. Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General made the announcement today. Assistant U.S. Attorneys Mackenzie Duane and Benjamin A. Saltzman of Mendell’s Major Crimes Unit prosecuted the case.
29 September 2021
Washington County Business Owner Indicted on Tax ChargesRead the Press Release
PITTSBURGH - A resident of West Alexander, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of filing false income tax returns, Acting United States Attorney Stephen R. Kaufman announced today.
The four-count Indictment, returned on September 21 and unsealed today, named Tina L. Beck, age 53, of West Alexander, Pennsylvania, as the sole defendant.
According to the Indictment, Beck filed federal income tax returns with the Internal Revenue Service for the calendar years 2015, 2016, 2017 and 2018, on which she willfully underreported gross receipts from the operation of the business known as “Beck’s Refuse Service”.
The law provides for a maximum total sentence of not more than twelve (12) years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Indicate relevant bond/detention information if known
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Internal Revenue Service conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Warden of Federal Corrections Institute in Dublin Charged with Sexual Abuse of A WardRead the Press Release
OAKLAND – Ray J. Garcia has been charged in a criminal complaint with sexual abuse of a ward, announced Acting U.S. Attorney Stephanie M. Hinds; Department of Justice (DOJ), Office of the Inspector General (OIG) Los Angeles Field Office Special Agent in Charge Zachary Shroyer; and FBI Special Agent in Charge Craig D. Fair.
According to the complaint filed September 24, 2021, and unsealed today, Garcia, 54, of Merced, Calif., is the warden of Bureau of Prison Federal Correctional Institute Dublin (FCI Dublin), an all-female low security federal correctional institution. At the time of the offense, he was the associate warden at FCI Dublin. As an associate warden and warden, Garcia had disciplinary authority over inmates incarcerated at FCI Dublin. He received training regarding inappropriate relationships with inmates, including the fact that sexual or financial involvement were prohibited. In addition, in 2019 and 2020 Garcia directed training on the Prison Rape Elimination Act (“PREA”), and trained new supervisors on PREA procedures and policies.
According to the complaint, Garcia knowingly had sexual contact with at least one inmate victim while she was incarcerated at FCI Dublin and was under his custodial, supervisory, or disciplinary authority. In particular, the complaint alleges that Garcia digitally penetrated the victim on multiple occasions. The complaint describes an occasion during which Garcia assaulted a victim and when the victim pushed Garcia’s hand away, Garcia put the victim’s hand on his genitals. Further, the complaint alleges that Garcia requested that the victim, and at least one other inmate, strip naked for him when he did his rounds at FCI Dublin. Garcia allegedly took photographs of the victim naked in a cell at FCI Dublin and also showed the victim pictures on his cellphone of his own genitalia. The complaint alleges Garcia maintained several nude photographs of the victim on his personal computer.
The complaint further alleges that Garcia took actions to deter the victim from coming forward. As detailed in the complaint, Garcia told the victim that he was “close friends” with the individual responsible for investigating allegations of misconduct by inmates and told the victim that he could not be fired. In addition, law enforcement located hundreds of sexually graphic photographs—including photographs of male and female genitalia and nude photographs of Garcia—on Garcia’s work cellphone issued by BOP.
As stated in the complaint, Garcia was placed on administrative leave in July 2021 in connection with the investigation.
Garcia is charged with one count of sexual abuse of a ward, in violation of 18 U.S.C. § 2243(b). He made an initial federal court appearance this afternoon in the U.S. District Court for the Northern District of California before U.S. Magistrate Judge Nathaneal Cousins. Garcia’s next federal court appearance is scheduled for November 12, 2021, before U.S. Magistrate Judge Kandis A. Westmore for a status conference.
The charges contained in the criminal complaint are mere allegations. As in any criminal case, the defendant is presumed innocent unless and until proven guilty in a court of law. If convicted of the charge, Garcia faces a maximum statutory sentence of 15 years imprisonment, a three-year term of supervised release, and a $250,000 fine. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Molly K. Priedeman is prosecuting the case with the assistance of Leeya Kekona. The prosecution is the result of an investigation by the DOJ OIG and the FBI.
United States Files False Claims Act Complaint Against Klickitat County Farm-Owner Rick T. Gray for Defrauding Federal Crop Insurance Out of over Half a Million DollarsRead the Press Release
Spokane, WA- The United States has filed a civil enforcement action against Rick T. Gray and one of his companies, Gray Farms & Cattle Co. LLC, in United States District Court, alleging Mr. Gray’s multi-year scheme to defraud the federally backed crop insurance program designed to help farmers nationwide. According to the Complaint filed by the United States, Mr. Gray made tens of thousands of dollars through hidden and undisclosed wheat sales while falsely claiming a wheat production loss thereby obtaining over $500,000 in crop insurance loss indemnity payments, all of which were fully backed by the United States Department of Agriculture (USDA) through the Federal Crop Insurance Corporation. Under the False Claims Act , Mr. Gray and his company face triple damages for any fraudulently caused losses to the United States (over $1.6 million in triple damages as alleged) as well as additional penalties under the False Claims Act and the Financial Institutions Reform and Recovery Enforcement Act.
According, to the Complaint filed by the United States, in 2015 Mr. Gray concealed more than half of the wheat production of companies he owned and/or controlled by falsely claiming to crop insurance loss adjusters that those companies had only sold approximately 21,000 bushels of wheat for approximately $130,000, when in actuality his companies also sold over 35,000 bushels of wheat for an additional approximate $184,000 in hidden and undisclosed wheat sales. As alleged, Mr. Gray’s false statements netted him and the companies he owned and/or controlled at least $540,028 in insurance indemnity payments for 2015. Moreover, as stated in the Complaint, Mr. Gray was attempting to execute the same scheme in 2016 but was discovered by loss adjusters and the USDA before he once again fraudulently obtained phony crop insurance loss payments.
Assistant United States Attorneys Tyler Tornabene and Dan Fruchter are handling this matter with analytical and investigative support from the United States Department of Agriculture Office of Inspector General and the United States Department of Agriculture Risk Management Agency. The case has been filed as United States v. Rick T. Gray et al., in the United States District Court for the Eastern District of Washington under cause number 1:21-CV-03126. The claims articulated in the Complaint are allegations only; at this time there has been no determination of liability.
U.S. Swiss Dual National Pleads Guilty to Bank Fraud Charges in Connection with Investment Fraud SchemeRead the Press Release
WASHINGTON – Lawrence Paul Schmidt, aka Lawrence Schmid, 61, formerly of Washington, D.C., pleaded guilty today to bank fraud after being extradited from the United Kingdom to the District of Columbia in late 2020 in connection with federal charges related to an investment fraud scheme.
The announcement was made by Acting U.S. Attorney Channing D. Phillips and Wayne A. Jacobs, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division.
Schmidt was indicted in November 2018 on two counts of bank fraud, two counts of wire fraud, and six counts of engaging in monetary transactions in property derived from specified unlawful activity. He pleaded guilty to a bank fraud charge in the U.S. District Court for the District of Columbia. The remaining charges will be dismissed at sentencing. Bank fraud carries a statutory maximum sentence of 30 years in prison and potential financial penalties. Under federal sentencing guidelines, Schmidt faces a likely range of 41 to 51 months in prison, a fine of up to $150,000, and restitution. The Honorable Amy Berman Jackson scheduled sentencing for Dec. 17, 2021. Schmidt remains in custody pending sentencing.
According to the statement of offense submitted to the Court and admitted by Schmidt, beginning in 2008, Schmidt created several investment entities and related corporations, including Commercial Equity Partners, Ltd. (“CEP”) and FutureGen Company (“FGC”), through which he solicited funds. Between June 2008 and April 2014, Schmidt raised over $22 million in funds, which he then comingled and transferred between the various entities and his personal accounts. Schmidt knew that by January 2014, the bank accounts for the various CEP and FGC entities contained insufficient funds to meet the companies’ financial obligations. By March 2014, the approximate combined balance of all the entities’ bank accounts was just $8,600.
As a result, over a roughly four-month period in early 2014, Schmidt masterminded a scheme to defraud and attempt to defraud Bank of America and SunTrust Bank of approximately $746,885.59 in funds controlled by the banks. Specifically, using various methods, Schmidt deposited fraudulent and forged checks into investment fund bank accounts that he controlled, then transferred and used the money for, amongst other things, his own benefit and use. In doing so, according to the government’s evidence, Schmidt abused his position of private trust with the investors of the various CEP and FGC-related entities.
As the scheme continued to unravel, on April 10, 2014, Schmidt boarded a one-way flight from the United States to London, where he remained until his arrest and extradition. Prior to leaving the United States, Schmidt wrote two letters to family members in which he stated, among other things, “[a]t this point in my life I have three choices, suicide, prison more than likely or to try and start over and make right by everyone.” Thereafter, on or about July 24, 2015, in responding to a message sent to him on LinkedIn from one of his investors, Schmidt wrote, “I know the federal government would like to prosecute me and I cannot blame them.”
On June 1, 2014, the U.S. Securities and Exchange Commission filed suit in U.S. District Court for the District of Columbia, in Civil Action No. 14-cv-1002 (CRC), against Schmidt, CEP, FGC, and the entities Schmidt controlled. The court entered final judgment against Schmidt on Oct. 3, 2018, and entered final judgment against CEP, FGC, and the additional entities that Schmidt controlled on March 11, 2019.
This investigation was conducted by the FBI’s Washington Field Office Criminal Division. The Office of International Affairs in the Justice Department’s Criminal Division, the United States Marshals Service, and the government of the United Kingdom provided substantial assistance in securing Schmidt’s arrest and extradition. The SEC also provided substantial assistance in this investigation.
The prosecution is being handled by Assistant U.S. Attorneys Anne P. McNamara and David B. Kent of the U.S. Attorney’s Office for the District of Columbia.
Two Men Charged with Fraud Involving More Than $1 Million in Unemployment Compensation and the CARES ActRead the Press Release
ROCKFORD — A superseding indictment returned Tuesday by a federal grand jury in Rockford charged two individuals with wire fraud, mail fraud, and aggravated identity theft involving unemployment compensation claims and the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”).
As alleged in the indictment, from June 2020 through March 2021, ROBERT CARTER, SIRREGINALD MCGUIRE, and others schemed to submit fraudulent Pandemic Unemployment Assistance claims to the California Employment Development Department, the Maryland Division of Unemployment Insurance, and the Virginia Employment Commission, resulting in more than $1 million in unemployment benefits for claimants whom Carter and McGuire knew were not entitled to them. Carter, McGuire, and others also electronically filed unemployment insurance claims in their own names, the charges allege. The pair opted to have the unemployment benefits paid via debit cards mailed to residences connected to Carter, McGuire, and others involved in the scheme, and then withdrew the money from financial institutions in Illinois.
Carter, 27, of Hampton, Ga., is charged with wire fraud and mail fraud involving unemployment compensation claims and the CARES Act, aggravated identity theft, and money laundering. McGuire, 26, of DeKalb, Ill., is charged with wire fraud and mail fraud involving unemployment compensation claims and the CARES Act, and aggravated identity theft.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Irene Lindow, Special Agent-in-Charge of the Chicago Region of the Department of Labor – Office of Inspector General; and William Hedrick, Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service. The government is represented by Assistant U.S. Attorney Scott R. Paccagnini.
Each count of wire fraud and mail fraud carries a maximum penalty of 20 years in federal prison, while money laundering carries a maximum sentence of ten years. Aggravated identity theft carries a mandatory sentence of two years’ imprisonment. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines. Arraignments in U.S. District Court in Rockford have not yet been set.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Two Individuals Charged with Identity Theft After Using Stolen Identities of Deceased and Elderly Victims to Purchase Vehicles, a House, and to Obtain a False PassportRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging Lloyd Linwood Comer, age 59, of Brandywine, Maryland, and Doreen Gilmore, age 54, of Brandywine, Maryland for the federal charges of conspiracy to commit wire fraud and bank fraud, the substantive charge of bank fraud, false statement in a passport application, and aggravated identity theft.
The indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Chief of the Criminal Investigations Division of the U.S. Department of State’s Diplomatic Security Service (DSS) Jessica Moore; and Special Agent in Charge Michael McGill of the Social Security Administration Office of Inspector General, Philadelphia Field Division.
According to the four-count indictment, from January 2019, from January 2021, Comer and Gilmore conspired with others to finance the purchase of vehicles by using the stolen identities of real persons, fraudulent checks, and misappropriated bank account numbers. Allegedly, in at least one occasion, the defendants did not make payments on fraudulently obtained loans and retained the vehicles for themselves.
Specifically, the indictment alleges that the defendants fraudulently obtained the vehicles by inserting false loan application information with misappropriated names, dates of birth, social security numbers, and fraudulent proof of identity submitted to lenders. Lenders then approved financing for vehicle loans based on the false applications.
The indictment continues to allege that Comer applied for a United States passport by falsely stating that he was Victim 1, a deceased man. In order to obtain the passport, Comer allegedly provided a fraudulently obtained identification card in Victim 1’s identity and provided Victim 1’s birth certificate as proof of identity, allegedly obtained by Gilmore. As alleged in the indictment, Comer contacted the Social Security Administration to report Victim 1’s death as erroneous and attributed the error to the fact that Victim 1’s name is the same name as Victim 1’s deceased father. Soon after obtaining the false documents, Comer allegedly traveled to Jamaica with Gilmore under Victim 1’s identity and passport.
In addition, Comer and Gilmore allegedly submitted a mortgage application in the name of a 76-year-old woman for the purchase of a residence in Brandywine, Maryland in the amount of $541,500. As stated in the indictment, the application falsely represented the woman’s employment status as a full-time employee of two separate business entities. On the mortgage application, Comer and Gilmore allegedly listed their contact information under the woman’s contact information, submitted fraudulent financial documents, and falsely stated the woman’s income and finances.
Further, Comer and Gilmore allegedly resided in the home instead of the 76-year-old woman and did not make any payments on the mortgage loan.
If convicted, Gilmore and Comer face a maximum of 30 years in federal prison for conspiracy to commit bank and wire fraud; a maximum of 30 years in federal prison for bank fraud; 10 years in federal prison for passport fraud; and two years in federal prison consecutive to any sentence imposed for aggravated identity theft. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner commended the DSS and SSA OIG for their work in the investigation. Mr. Lenzner thanked Special Assistant U.S. Attorney Michael F. Davio and Assistant U.S. Attorney Matthew J. Maddox, who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/community-outreach. For more information on how to report fraud, please visit https://www.justice.gov/usao-md/report-fraud.
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Two District Men Indicted on Federal Charges Involving Illegal Possession and Sale of FirearmsRead the Press Release
WASHINGTON – Two men, both from Washington, D.C., have been indicted on federal charges alleging that they conspired for nearly two years to deal firearms -- including “ghost guns” -- to people in the District of Columbia who were prohibited or otherwise unable to legally obtain them.
The indictment was returned yesterday and announced today by Acting U.S. Attorney Channing D. Phillips, Charlie J. Patterson, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Milique Wilson, 37, and Joseph Vincent Smith, 36, were each indicted on charges of conspiracy, engaging in the business of dealing in firearms without a license, and unlawful possession of a firearm and ammunition by a felon. Both are detained pending further proceedings in the U.S. District Court for the District of Columbia.
According to the indictment, Wilson, Smith, and others conspired to obtain firearms from outside of the District of Columbia, including in locations in Maryland and Virginia, and transfer and transport these firearms to the District of Columbia and elsewhere. The indictment alleges that, on multiple occasions, Wilson and Smith contacted individuals prohibited from purchasing and possessing firearms and sold at least five firearms -- including two unserialized privately manufactured firearms (also known as “PMFs” or “ghost guns”) -- to buyers. PMFs are unserialized and untraceable firearms that can be bought online and assembled at home with a kit. In addition to firearms trafficking charges, Wilson and Smith are each charged with possessing firearms and ammunition as convicted felons.
Wilson was arrested on Aug. 27, 2021 by officers with the Metropolitan Police Department after he was allegedly seen brandishing a firearm in Southeast Washington. Officers located him in a vehicle in the drive-through of a fast-food restaurant in the 1400 block of Maryland Avenue NE and recovered an unserialized firearm (PMF) and ammunition. He has been in custody ever since. Smith was arrested at his residence on Sept. 22, 2021 for allegedly possessing a firearm and 20 rounds of ammunition. He also has been in custody since his arrest.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the ATF Washington Field Office, with support from the Metropolitan Police Department (MPD) and the U.S. Marshals Service. The case is being prosecuted by Assistant U.S. Attorneys Rachel Fletcher and David Henek, of the Violent Crime and Narcotics Trafficking Section of the U.S. Attorney’s Office for the District of Columbia.
Two Defendants Charged in Separate, Covid-19 Vaccination Record Card FraudsRead the Press Release
DETROIT - Two defendants have been charged via criminal complaint for their roles in separate frauds related to Covid-19 Vaccination Record Cards, announced Acting United States Attorney Saima S. Mohsin.
Joining in the announcement were Gavin McClaren, Acting Special Agent in Charge, VA-OIG, Central Field Office, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health & Human Services, Office of Inspector General (HHS-OIG) – Chicago Region and Vance R. Callender, Special Agent in Charge of Homeland Security Investigations (HSI) field offices in Michigan and Ohio.
The first complaint charges Bethann Kierczak, 37, of Southgate with theft of government property and theft or embezzlement related to a healthcare benefit program. Kierczak, a registered nurse, was arrested this morning and will be appearing in federal court this afternoon on the charges.
According to the complaint, Kierczak is responsible for stealing or embezzling authentic Covid-19 Vaccination Record Cards from the VA hospital—along with vaccine lot numbers necessary to make the cards appear legitimate—and then reselling those cards and information to individuals within the metro Detroit community. The complaint alleges that Kierczak’s theft of Covid-19 Vaccination Record Cards began at least as early as May of this year and continued until the present. It is further alleged that Kierczak sold the cards for $150-$200 each and communicated with buyers primarily via Facebook Messenger.
The second complaint charges Rapheal Jarrell Smiley, 32, of Detroit with fraud involving department or agency seals, identity document fraud, and trafficking in counterfeit goods. Smiley was arrested earlier today and will also be making his initial appearance in federal court as well.
According to the complaint, Smiley is responsible for conducting an ongoing scheme to import and sell or otherwise distribute fraudulent Covid-19 Vaccination Record Cards. It is alleged that Smiley ordered the cards from two shippers in China, both of which have been previously identified by law enforcement as importers of fraudulent Covid-19 Vaccination Record Cards. Further, the complaint alleges that Smiley advertised the cards for sale via his Facebook and Instagram accounts.
“These arrests reflect our deep commitment to protecting the health of our community and preventing this dangerous fraud from affecting our most vulnerable citizens,” said Acting US Attorney Mohsin. “Regardless of whether an individual choses to get vaccinated, we urge everyone to avoid turning to schemes like these to evade vaccination requirements. Importing these cards is a crime. Selling these cards is a crime. We will continue to investigate these crimes and prosecute them accordingly.”
“VA’s COVID-19 safety protocols, including ensuring accurate vaccination records, exist to keep both veterans and VA’s healthcare workers safe during this global pandemic,” said Gavin McClaren, Acting Special Agent in Charge, VA-OIG, Central Field Office. “These charges symbolize VA OIG’s commitment to protecting the integrity of VA’s healthcare delivery system, and diligently investigating any potential criminal activity that could threaten the safety of its patients and employees.”
“The theft of government property is a serious crime, particularly when it involves documents that are used in recording patient health information,” said Special Agent in Charge Lamont Pugh III of the U.S. Department of Health & Human Services, Office of Inspector General (HHS-OIG) - Chicago Region. "Stealing and selling COVID-19 vaccination cards is an inexcusable act and will not be tolerated. HHS is committed to working with our law enforcement partners to protect the health and safety of the public during this pandemic.”
“At a time when Americans eagerly want to return to a normal way of life, these counterfeit vaccine cards undermine our confidence in COVID-19 vaccines,” said Vance R. Callender, Special Agent in Charge of Homeland Security Investigations (HSI) field offices in Michigan and Ohio. “HSI dedicates significant resources to investigate a wide variety of pandemic-related fraud schemes. This arrest and seizure demonstrates HSI’s ongoing commitment to support the integrity of our public healthcare system by preventing the illegal importation and sale of counterfeit vaccine cards.”
A complaint is only a charge and is not evidence of guilt. Trial cannot be held on felony charges in a complaint. When the investigations are completed, determinations will be made whether to seek felony indictments.
The cases are both being prosecuted by Assistant United States Attorney Ryan A. Particka. The Kierczak investigation is being conducted by the U.S. Department of Veterans Affairs-Office of Inspector General (VA-OIG), VA Police Detroit and the Medicare Fraud Strike Force (MFSF) partners, a partnership among the Criminal Division, U.S. Attorney’s Offices, the FBI and U.S. Health and Human Services-Office of Inspector General (HHS-OIG). The Smiley investigation is being conducted by agents from Homeland Security Investigations, the principal investigative arm of the Department of Homeland Security.
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.
Trenton man sentenced to 5 years in prison for aiding illegal purchase of firearms connected to the killing of Dayton DEA task force officerRead the Press Release
DAYTON – Arland Mills, 43, of Trenton, Ohio, was sentenced in U.S. District Court today to 60 months in prison for hiring a man to illegally purchase firearms for him.
Mills pleaded guilty in federal court in November 2020. He admitted that as part of his scheme, Mills obtained multiple firearms, three of which were later recovered during the execution of a search warrant on Ruskin Road in Dayton where Dayton Police Detective and DEA Task Force Officer Jorge Del Rio was shot on Nov. 4, 2019.
“Decisions carry consequences, and here, the consequences of Mills’ illegal gun purchases and sales were dire,” said Acting U.S. Attorney Vipal J. Patel.
Delano Wells, 50, also of Trenton, purchased the firearms at a licensed firearms dealer in Middletown on behalf of Mills. Wells was charged by criminal complaint on Nov. 5, 2019, with making false statements on a federal firearms form. Wells lied on ATF Form 4473 by indicating “yes” he was purchasing the firearm for himself and not for anyone else.
Once Wells purchased the firearms, he would provide them to Mills. Mills then either paid Wells a stipend in addition to the cost of the gun, or he forgave a portion of the debt owed to him by Wells.
Wells purchased more than eight firearms in this manner on behalf of Mills, along with several firearm lower receivers. Wells was sentenced to six months of home detention and three years of supervised release.
As part of today’s conviction, Mills will forfeit the 28 firearms that the government seized in this case. He was also ordered to pay a $20,000 fine.
Vipal J. Patel, Acting U.S. Attorney for the Southern District of Ohio; Roland Herndon, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Interim Dayton Police Chief Matt Carper; Keith Martin, Special Agent in Charge, Drug Enforcement Administration (DEA); J. William Rivers, Special in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Montgomery County Prosecutor Mathias H. Heck, Jr. announced the sentence imposed today by Senior U.S. District Judge Thomas M. Rose. Assistant United States Attorney Amy M. Smith is representing the United States in this case.
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Toledo Man Sentenced to 25 Years After Law Enforcement Officials Seized 8 Kilos of Heroin and Fentanyl from ResidencesRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that on September 28, 2021, U.S. Judge Jack Zouhary sentenced Robert Escobar, 51, of Toledo, Ohio, to 25 years imprisonment after Escobar pleaded guilty in February of 2021 to three counts of possession with the intent to distribute a controlled substance.
According to court records, on separate occasions between March and October of 2019, DEA investigators used a confidential informant to make numerous controlled drug buys from Escobar of substances later determined to contain cocaine and a fentanyl-heroin mixture.
During one of these controlled buys, Escobar remarked to the informant on the potency of the narcotics that he sells, saying, “I’m tellin’ you it’s going to kill ‘em.” On another occasion, Escobar described to the informant two different types of narcotics that he sells, naming them “Maserati” and “XXX,” both of which were marked on packages later seized.
On October 8, 2019, law enforcement officers executed a search warrant at four different residences associated with Escobar and seized almost two kilograms of mixtures containing heroin, approximately three kilograms of mixtures containing fentanyl and over three kilograms of mixtures containing valeryl fentanyl. In addition, agents seized narcotics packaging materials and narcotics proceeds from all four locations.
Court records state that during the execution of a search warrant of an address on N. Michigan Avenue, in addition to the narcotics seized, investigators also confiscated 21 empty kilogram packages, blenders, scales, a vacuum sealer, cutting agents and a respirator type mask. Escobar was arrested following the execution of the search warrants.
The charges in the indictment Escobar pleaded guilty to each carried a penalty enhancement due to Escobar’s previous felony drug conviction in 2001 of conspiracy to possess cocaine with intent to distribute.
This investigation was conducted by the DEA Toledo Task Force and the Toledo Police Department Vice Unit. The Task Force includes representatives of the DEA, Perrysburg Township Police, Ohio State Highway Patrol, Wauseon Police Department, Sylvania Police Department, Ohio Bureau of Criminal Investigation and the Sandusky Police Department and the U.S. Customs and Border Protection. The Toledo Police Department SWAT team also assisted.
This case was prosecuted by Assistant U.S. Attorney Alissa M. Sterling, James L. Morford and former Assistant U.S. Attorney Ashley A. Futrell.
Southeastern Connecticut Residents Charged in Cocaine Trafficking ConspiracyRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, Joshua W. McCallister, Acting Inspector in Charge of the U.S. Postal Inspection Service, Boston Division, Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, and Town of Groton Police Chief Louis J. Fusaro, Jr., today announced that a federal grand jury in New Haven returned an indictment yesterday charging CARLOS ANTONIO CRESPO-FEBUS, 40, of New London, and STEVEN COLLAZO, 30, of Groton, for their alleged involvement in a scheme to receive large quantities of cocaine from Puerto Rico through the U.S. Mail for distribution in Connecticut and elsewhere.
As alleged in court documents and statements made in court, in April 2021, the U.S. Postal Inspection Service’s Narcotics and Bulk Cash Trafficking Task Force and the Drug Enforcement Administration began investigating a cocaine trafficking operation headed by Crespo-Febus. The investigation revealed that Crespo-Febus was coordinating the shipment of parcels, typically containing two kilograms of cocaine, from U.S. Post Offices in Puerto Rico to various “drop addresses” in New London County. Collazo, who served as the primary “runner” for Crespo-Febus, picked up parcels from the drop addresses and delivered them to Crespo-Febus at Crespo-Febus’s New London residence.
It is further alleged that investigators have intercepted and seized more than 12 kilograms of cocaine that were mailed from Puerto Rico to Connecticut, and have identified dozens of other suspicious parcels that likely contained kilogram quantities of cocaine.
Crespo-Febus and Collazo were arrested on federal criminal complaints on September 20, 2021.
The indictment charges Crespo-Febus and Collazo with conspiracy to distribute, and to possess with intent to distribute, five kilograms or more of cocaine, an offense that carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life. Based on his prior conviction for a serious violent felony, namely second degree murder, Crespo-Febus faces a mandatory minimum term of imprisonment of 15 years if he is convicted of the charge.
Crespo-Febus is currently detained and Collazo is released on a $100,000 bond.
Acting U.S. Attorney Boyle stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the U.S. Postal Inspection Service’s Narcotics and Bulk Cash Trafficking Task Force and the Drug Enforcement Administration, with assistance from the New London and Town of Groton Police Departments. The Task Force includes members from the U.S. Postal Inspection Service, the U.S. Postal Service – Office of the Inspector General, the Connecticut Army National Guard, and the Hartford, New Britain, Meriden and Town of Groton Police Departments. The case is being prosecuted by Assistant U.S. Attorney Konstantin Lantsman.
So-Called ‘Frack Master’ Sentenced to 15 Years in Federal PrisonRead the Press Release
Texas oil-and-gas mogul Christopher A. Faulkner has been sentenced to 15 years in federal prison for bilking investors out of millions of dollars and concealing money from the IRS, announced Acting U.S. Attorney for the Northern District of Texas Chad Meacham.
A frequent media commentator and self-proclaimed “frack master,” Faulkner, now 44, was arrested in June 2018 at the Los Angeles International Airport. He entered his first guilty plea in October 2018. After the judge declined to impose the binding 12-year sentence stipulated in the plea agreement, Faulkner withdrew his guilty plea. He entered a second guilty plea in December 2020 and was sentenced in September 2021 to 15 years in federal prison for securities fraud and attempted tax evasion. U.S. District Judge Jane Boyle also ordered him to pay $92.4 million in restitution to his victims.
According to plea papers, from 2011 to 2016, Faulkner raised more than $71 million from working interest investors, who took on a fixed portion of projected drilling costs in exchange for a share in his oil and gas profits.
But in marketing materials distributed to these investors, Faulkner inflated the estimated drilling costs by as much as 800 percent, allowing his three companies – Breitling Energy Corp., Crude Energy, LLC and Patriot Energy, Inc. – to pocket the difference between his projections and the actual cost of the wells.
He also gave would-be investors a “Geology Report,” ostensibly prepared by an independent expert, estimating future production for each well. Unbeknownst to them, the report was generated by a geologist on Faulkner’s payroll who consistently overstated the wells’ potential.
Faulkner routinely oversold shares, then transferred investment funds into comingled accounts despite promising investors their money would be deposited in a segregated bank account used only to pay for drilling activities.
Over a five-year period, he admits, he diverted approximately $23 million for his own personal benefit, shelling out hundreds of thousands of dollars at a time for luxury travel, professional concierge services, maintenance of multiple residences, and at least seven vehicles, including an Aston Martin, a Bentley, and a Mercedes Benz. During that time, his companies paid out just $6.2 million to investors, according to the criminal complaint filed in June.
Moreover, in 2014, Faulkner says, he concealed at least $3.7 million in taxable income from the federal government, failing to file a return or pay income tax.
Faulkner previously settled with the Securities & Exchange Commission (SEC), which filed a complaint in June 2016 alleging multiple violations of federal securities laws. Faulkner’s settlement with the SEC ordered him to disgorge $23.8 million; permanently enjoins him from violating, among other things, the antifraud provisions of the federal securities laws and from participating in any unregistered securities transactions; and, bars him from serving as an officer or director of any SEC-reporting company and from participating in any offering of a penny stock.
The Internal Revenue Service – Criminal Division, Federal Bureau of Investigation, and U.S. Postal Inspection Service conducted the criminal investigation. Assistant U.S. Attorneys Marcus Busch, Katherine Miller, Mark Tindall (now a Western District of Texas AUSA), Christopher Stokes (fmr) and Ryan Raybould (fmr) prosecuted the criminal case.
Seven Former Postal Service Employees Charged in Federal Probe of Credit Cards Stolen from the MailRead the Press Release
CHICAGO — Seven former U.S. Postal Service employees in the Chicago area have been charged with participating in schemes to steal credit cards and other financial instruments from the mail. The indictments are the latest charges in “Operation Cash on Delivery,” a federal investigation that previously resulted in conspiracy charges against several other former USPS employees.
Indictments unsealed Tuesday in U.S. District Court in Chicago allege that credit cards and other financial instruments were stolen from the mail and provided to others in exchange for cash or other items. Some of the defendants unlawfully obtained USPS customers’ personal identifying information, including dates of birth and Social Security numbers, which was then used to fraudulently activate the stolen cards, the charges allege. The newly charged USPS employees delivered mail in Chicago or processed and sorted the mail at a USPS facility in suburban Palatine.
Many of the new defendants were arrested Tuesday and have begun making initial appearances in federal court in Chicago.
The indictments and arrests were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; William Hedrick, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago; Andre Martin, Special Agent-in-Charge of the Chicago Great Lakes Area Field Office of the U.S. Postal Service, Office of Inspector General; and Angie Salazar, Special Agent-in-Charge of the Chicago office of Homeland Security Investigations. The government is represented by Assistant U.S. Attorneys Shy Jackson and Paige Nutini, and Special Assistant U.S. Attorney Peter Madriñan.
Charged with conspiring to steal mail are former USPS employees CHARLESE BENNETT, 31, of Chicago; SHUNTONESE RICHARDSON, 24, of Willowbrook, Ill.; LATIYAH DAVIDSON, 28, of Chicago; C’ORY VONPIER MCNEAL, 32, of Atlanta, Ga.; BRANDY WALKER, 33, of Chicago; and ZAKEYA BLAKE, 24, of Hammond, Ind. Also charged in the conspiracy are DARAY ROSS HINES, 25, of Chicago; TRAMONT MILLER, 23, of Wheaton, Ill.; MAHLIK WASHINGTON, 30, of Chicago; and WILLIAM CRAWFORD, 33, of Chicago. Former USPS employee KENNETHIA HOWLEIT, 27, of Chicago, is charged with knowingly receiving and possessing stolen mail.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Second Old Forge Man Charged with Bribery and Related OffensesRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 28, 2021, James J. Peperno, Jr., age 57, of Old Forge, Pennsylvania, was indicted by a federal grand jury with various bribery, money laundering, and perjury offenses.
According to Acting United States Attorney Bruce D. Brandler, the indictment alleges that Peperno solicited cash payments and debt forgiveness from a local business owner, to provide to Robert Semenza, Jr., the former President of the Old Forge Borough Council. Peperno allegedly provided and promised cash and future employment to Semenza, in exchange for Semenza performing and promising to perform official acts, between November 2018 and October 2020. In particular, the official acts were in connection with a civil litigation filed by Old Forge Borough against the local business owner, in a dispute over Old Forge zoning ordinances.
Semenza allegedly agreed, in exchange for cash payments, to vote on the local business owner’s behalf in matters before the Old Forge Borough Council, to advocate on behalf of the local business owner with the Old Forge Borough Council, the Old Forge Borough Solicitor, and Old Forge zoning officials, and to propose a favorable resolution for the civil litigation to the Old Forge Borough Council and Solicitor, among other things.
Peperno allegedly kept a portion of the cash payments paid by the local business owner, depositing them in a bank account in his parents’ name. Peperno was charged with a bribery conspiracy, with two counts of federal program bribery, two counts of honest services wire fraud, violating the Travel Act, and two counts of money laundering.
Peperno also was charged with false statements and perjury, in connection with an outstanding restitution obligation owed from a prior federal conviction. Peperno allegedly claimed, in a written filing and when testifying under oath, that he did not have any income or access to any bank accounts, despite receiving approximately $6,000 from the local business owner, some of which he deposited in his parents’ bank account.
Peperno is the second individual charged in this investigation. Robert Semenza, Jr., pleaded guilty in June 2021 to federal program bribery, and awaits sentencing.
The case was investigated by the Scranton Federal Bureau of Investigation’s Public Corruption Task Force, which consists of members of the Pennsylvania State Police and the Pennsylvania Attorney General’s Office, and federal agents from the FBI and Internal Revenue Service. The case is being prosecuted by Assistant U.S. Attorney Phillip J. Caraballo.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the most serious offense is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Sacaton Man Sentenced to 6 Years for Possession with Intent to Distribute Methamphetamine while on Federal SupervisionRead the Press Release
PHOENIX, Ariz. – Lawrence Antonio Jackson, 30, of Sacaton, Arizona, was sentenced yesterday by U.S. District Judge Diane J. Humetewa to 5 years in prison, followed by three years of supervised release. Jackson also received an additional year in prison because he committed this offense while on federal supervised release for Possession of a Dangerous Weapon in a Federal Courthouse. Jackson previously pleaded guilty to Possession with Intent to Distribute Methamphetamine.
On September 6, 2020, Jackson possessed 6.8 grams of actual methamphetamine, several small baggies, multiple scales, and a Luger pistol. Jackson is an enrolled member of the Gila River Indian Community.
The Gila River Police Department conducted the investigation in this case. Assistant U.S. Attorney Raynette Logan, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-21-00297-PHX-DJH, CR 18-01239-PHX-DJH
RELEASE NUMBER: 2021- 063_Jackson# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Rocky Mount Tax Return Preparer Sentenced for Conspiracy to Filing False Tax ReturnsRead the Press Release
NEW BERN, N.C. – A Rocky Mount, NC woman was sentenced today to 16 months imprisonment and ordered to pay $59,268.00 in restitution for committing conspiracy to prepare and file false tax returns.
According to court documents, Bertha Battle, 40 years old, conspired with others to file false tax returns for the 2011 through 2016 tax years for clients of Community Tax Services LLC located in Rocky Mount, North Carolina. Battle and her co-conspirators filed tax returns that claimed false education credits, among other illegitimate items, in order to fraudulently generate clients’ tax refunds. According to the IRS, the three-year scam resulted in a loss of more than $2 million in tax dollars. On June 18, 2020, Battle pled guilty to the charge.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by United States District Judge Louise W. Flanagan. The Internal Revenue Service Criminal Investigations (IRS-CI) assisted in this investigation. Assistant U.S. Attorney Ethan Ontjes is prosecuting the case.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:19-cr-00077-FL-1.
Rockland Man Sentenced for Making Hoax Distress CallRead the Press Release
PORTLAND, Maine: A Rockland man was sentenced today in federal court for making a hoax distress call, Acting U.S. Attorney Donald E. Clark announced.
U.S. District Judge Nancy Torresen sentenced Nathan Libby, 32, to time served (four days) and three years of supervised release. Libby was also ordered to pay $17,500 in restitution to the U.S. Coast Guard. He pleaded guilty on June 3, 2021.
According to court records, on December 3, 2020, while at the Spruce Head Fisherman’s Co-op, Libby communicated a false distress call for a vessel and crew reportedly taking on water in the vicinity of Spruce Head. In response, the Coast Guard initiated a search spanning more than five hours, which included the use of a local Coast Guard vessel, a Maine Marine Patrol vessel, and a helicopter from Coast Guard Air Station Cape Cod. Further investigation identified Libby as the caller and the search was suspended as a hoax call.
The Coast Guard pursues all distress calls, and when dealing with hoax cases, crews will search until the nature and legitimacy of the calls are resolved.
“I applaud the collaborative efforts of the Department of Justice, Maine Marine Patrol, Rockland Police Department, and the United States Coast Guard in bringing this case to a close and ensuring accountability for Mr. Libby’s actions,” said Capt. Brian LeFebvre, Sector Commander of Coast Guard Sector Northern New England. “Hoax calls like the call Mr. Libby placed unnecessarily put our rescue crews at risk, waste resources, and may limit our ability to respond to actual emergencies.”
The U.S. Coast Guard Investigative Service, the Maine Marine Patrol and Coast Guard Sector Northern New England investigated the case.
Rockford Man Sentenced to Ten Years in Federal Prison on Child Pornography ChargesRead the Press Release
ROCKFORD — A Rockford man was sentenced Tuesday to ten years in federal prison on child pornography charges.
PIERRE D. HAYES, 32, admitted in a plea agreement that on May 4, 2015, he used a computer to send a video file over the internet. The image in the file depicted a female child under the age of 18 engaged in sexually explicit conduct.
In addition to the prison term, U.S. District Judge Harry D. Leinenweber ordered Hayes to pay $25,000 in restitution.
The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Angie Salazar, Special Agent-in-Charge of Homeland Security Investigations (HSI) in Chicago; and Carla Redd, Chief of the Rockford Police Department. The government was represented by Assistant U.S. Attorney Monica V. Mallory.
Rockford Man Charged with Illegal Possession of FirearmsRead the Press Release
ROCKFORD — A Rockford man was indicted Tuesday by a federal grand jury for allegedly illegally possessing multiple firearms earlier this year.
The first count of the indictment alleges that on April 30, 2021, JAMES PETERSON, 40, illegally possessed a loaded .380-caliber semi-automatic handgun and a .45-caliber handgun. The second count alleges that on Aug. 18, 2021, Peterson illegally possessed a .45-caliber handgun. As a previously convicted felon, Peterson was not lawfully allowed to possess a firearm.
Arraignment in U.S. District Court in Rockford has not yet been set.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Angie Salazar, Special Agent-in-Charge of the Chicago Field Office of Homeland Security Investigations (HSI). The Illinois State Police’s State Line Area Narcotics Team (SLANT), the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives, and the U.S. Drug Enforcement Administration assisted in the investigation. The government is represented by Assistant U.S. Attorney Robert S. Ladd.
The public is reminded that an indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Each count in the indictment carries a maximum sentence of ten years in federal prison. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Raleigh Woman Sentenced to More Than 5 Years Imprisonment After Helping Ex-Husband Sexually Exploit a MinorRead the Press Release
NEW BERN, N.C. – Kellie Michelle Smith, 43, of Raleigh, was sentenced today to 68 months in prison for possession of child pornography. Smith pled guilty to a single-count Criminal Information on June 22, 2020.
According to court records and statements made during hearings, in October 2018, the Cary Police Department was conducting an investigation of online peer-to-peer child pornography distribution. They identified an IP address from which they were able to download a large amount of child pornography and tracked that IP address to the Raleigh residence of Stephan Grimes.
Homeland Security, Wake County Sheriff’s Office, and US Marshals executed a search warrant on February 20, 2019. Grimes was interviewed and admitted to downloading child pornography. An on-site forensic preview of a computer also revealed multiple explicit images of a young girl. Grimes identified the girl and initially claimed that she was 18 years old. He stated that the co-defendant Kellie Smith, his girlfriend to whom he had previously been married, was also present when the photos images were produced. Agents noted wall mounted surveillance cameras in the living room and bedroom that appeared to have been used to produce the images. Agents seized a computer, hard drives, and a USB drive.
Law enforcement identified and interviewed the young girl from the images. She stated that she had met Grimes when she was 16. Grimes later made sexual advances, which eventually resulted in the illegal activity.
A full forensic examination recovered 5 videos and over 400 images of child sexual abuse material, the great majority depicting the victim when she was 17 years old. Two long videos were taken in Grimes’ and Smith’s home using the dual wall-mounted cameras, with a simultaneous view in split screen.
Evidence demonstrated that Smith was involved in some sexual encounters including the minor victim, of which photos were taken.
Co-defendant Stephan Grimes pled guilty on September 14, 2021, to one count of manufacture of child pornography. He is scheduled to be sentenced during the court’s January 11, 2022, term of court.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Wake County Sheriff’s Office and Homeland Security Investigations (HSI) conducted the investigation. Assistant U.S. Attorney Jake D. Pugh 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. 5:20-cr-0019-FL.
Possessing Nearly Two Kilograms of Marijuana and a Loaded Gun Results in over Eleven Years in Federal PrisonRead the Press Release
A man who was caught with nearly two kilograms of marijuana and a loaded handgun was sentenced today to more than eleven years in federal prison.
Charles Robert Evans, age 33, from Cedar Rapids, Iowa, received the prison term after an April 6, 2021 guilty plea to one count of possessing with intent to distribute a controlled substance, one count of possessing a firearm in furtherance of a drug trafficking crime, and one count of being a felon in possession of a firearm.
Information presented at sentencing showed that Evans was approached by Cedar Rapids police officers in April 2020, at which time he jumped out of his car and attempted to run from officers. Officers were able to tackle and arrest him and found over $3,000 in cash on his person. A search of the vehicle revealed over 1,800 grams of marijuana and a loaded 9mm pistol with an obliterated serial number. Evans admitted to possessing the marijuana with the intent to distribute it, and to possessing the firearm in furtherance of that drug crime. In June 2020, Evans was again stopped by law enforcement in Victor, Iowa, and arrested. A search of his vehicle on that occasion revealed over 250 grams of marijuana and over $6,000 in cash. Evans had previously been convicted of 36 charges as an adult, including a felony crack distribution offense and multiple assaults.
Evans was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Evans was sentenced to a total of 137 months’ imprisonment, consisting of 77 months’ concurrent imprisonment on the possession-with-intent and felon‑in‑possession charges and 60 months’ imprisonment consecutive for possessing the firearm in furtherance of the drug trafficking crime. He must also serve a total of 5 years of supervised release after the prison terms. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Evans is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Cedar Rapids Safe Streets Task Force and prosecuted by Special Assistant United States Attorney Alex Geocaris and Assistant United States Attorney Dan Chatham. The task force is composed of representatives from the Federal Bureau of Investigation and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20‑CR‑00089‑CJW‑MAR.
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Pittsburgh Felon Charged with Firearms OffenseRead the Press Release
PITTSBURGH- A resident of Pittsburgh, Pennsylvania has been indicted by a federal grand jury in Pittsburgh on a charge of Possession of a Firearm and Ammunition by a Convicted Felon, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named William Lacell Dark, Jr., age 21, currently detained at Allegheny County Jail, as the sole defendant.
According to the Indictment, on or about September 2, 2021, Dark Jr., having been previously convicted of a crime punishable by more than one year in prison, knowingly possessed a firearm and ammunition.
The law provides for a maximum total sentence of not more than ten years in prison, a fine of $250,000.00, and a term of supervised release between three and five years. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Benjamin J. Risacher is prosecuting this case on behalf of the government.
The Allegheny County Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Passaic County Man Charged with Defrauding Investors of over $1 MillionRead the Press Release
NEWARK, N.J.– A Passaic County, New Jersey, man was arrested today in connection with a scheme to defraud investors of over $1 million through various misrepresentations and omissions about his business operations and his background, Acting U.S. Attorney Rachael A. Honig announced.
Gregory Ciccone, 43, of Woodland Park, New Jersey, is charged by complaint with securities fraud. He appeared this afternoon by videoconference before U.S. Magistrate Judge Leda Dunn Wettre and was released on $300,000 unsecured bond.
According to documents filed in this case and statements made in court:
Ciccone, who was previously convicted of wire fraud and filing a false tax return, once again orchestrated an investment fraud scheme whereby he obtained approximately $1.5 million from at least 22 investors through short-term, high-interest promissory notes in less than two years. Ciccone represented to prospective investors that his companies, Platinum Travel and Entertainment LLC, a New Jersey-based LLC, and Platinum Enterprises & Concierge Services Inc. (Platinum) were reserving blocks of rooms at luxury hotels, which would later be resold to elite clients at a profit.
Investors were promised 15 percent to 50 percent return on their investments for term periods ranging from one month to six months. Instead of using the funds to reserve blocks of rooms at luxury hotels, Ciccone diverted the funds for personal expenses and, in certain instances, paid other investors to make them believe that their investment was generating profits. When confronted with requests for transparency and redemptions by certain investors, Ciccone failed to honor the redemption requests, made misrepresentations about his inability to honor the redemption requests, misstated and omitted material facts, and provided certain investors with forged, modified, or otherwise fraudulent documentation.
Ciccone did not disclose to certain victim investors before they invested that he had a federal criminal conviction and that the conditions of his supervised release prohibited him from entering into promissory notes without approval of his U.S. Probation officer, which he had not requested.
From May 2019 through November 2019, Ciccone also made material misrepresentations to additional victim investors directly and through Individual 1, who began raising money on behalf of Ciccone in May 2019. Ciccone told Individual 1 about, and sent emails containing, lists of Platinum’s purported “immediate bookings” at various hotels to support his need to raise money for Platinum. Ciccone made these statements to Individual 1 knowing Individual 1 would communicate the information to investors and prospective investors. Ciccone’s statements to Individual 1, which Individual 1 disseminated to investors, were false. Platinum and Ciccone had not secured the hotel reservations, and Ciccone did not use the funds obtained from the Victim Investors to secure the hotel bookings listed in these communications.
Over the course of the scheme, Ciccone misappropriated the majority of funds received from victim investors, totaling at least $1.35 million, by using the money to pay for personal items, such as $54,330 to buy a BMW; approximately $235,000 to purchase clothes, wine, and other personal items; and over $216,000 in cash withdrawals. Ciccone also used investor funds to pay approximately $120,000 to other investors with overdue notes.
The securities fraud count carries a maximum penalty of 20 years in prison and a $5 million fine.
Acting U.S. Attorney Honig thanked special agents of the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas J. Mahoney; special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark; and special agents of IRS – Criminal Investigations, under the direction of Special Agent in Charge Michael Montanez in Newark, with the investigation leading to today’s charges. She also thanked the U.S. Securities and Exchange Commission’s Denver Regional Office, under the direction of Regional Director Kurt Gottschall, for its assistance.
The government is represented by Assistant U.S. Attorney Vijay Dewan of the U.S. Attorney’s Office Economic Crimes Unit.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Owner of Russian energy company sentenced to federal prison in scheme to evade U.S. national security trade sanctionsRead the Press Release
SAVANNAH, GA: The owner of a Russian energy company has been sentenced to federal prison for his role in a scheme to evade United States national security laws.
Oleg Vladislavovich Nikitin, 54, of St. Petersburg, Russia, was sentenced to 28 months in prison after pleading guilty to Conspiracy to Violate the International Emergency Economic Powers Act, the Export Control Reform Act and the Export Administration Regulations, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge R. Stan Baker also ordered Nikitin, general director of KS Engineering (KSE), a St. Petersburg-based energy company, to pay a fine of $5,000, and to be subject to deportation upon completion of his prison term.
Judge Baker also ordered KSE and an Italian company, GVA International Oil and Gas Services (GVA), to serve five years’ probation.
“The United States sent a clear message that it will enforce its sanctions against any nation state that acts against U.S. national security interests,” said Acting U.S. Attorney David Estes. “Our law enforcement partners performed outstanding work in preventing these conspirators from circumventing those sanctions.”
As described in court documents and testimony in United States v. World Mining and Oil Supply et. al., the conspiracy began in 2016 when an unnamed, Russian government-controlled business accepted a proposal submitted by Nikitin, in which KSE would provide a power turbine from a U.S.-based manufacturer for use on a Russian arctic deepwater drilling platform for approximately $17.3 million. As part of the Russian Industry Sector Sanctions, such use was expressly prohibited by the U.S. Department of Commerce unless a license was first obtained.
In pleading guilty to the conspiracy charge in March 2021, Nikitin admitted that he was involved in a conspiracy with Gabrielle Villone and Villone’s company GVA to obtain the turbine on behalf of KSE. Villone and GVA then employed the services of Dali Bagrou and his Dacula, Ga.-based company, World Mining and Oil Supply (WMO), to procure the turbine from a U.S.-based manufacturer and to have the turbine shipped overseas. The parties conspired to conceal the true end user of the turbine from both the U.S. manufacturer and the U.S. government by submitting false documentation that stated the turbine would be used by a U.S. company in and around Atlanta.
Nikitin, Villone, and Bagrou all were arrested in Savannah, Ga., in 2019 while attempting to complete the illegal transaction. Villone currently is serving a 28-month prison sentence after pleading guilty to the same charge, and Bagrou awaits sentencing after pleading guilty in March.
“Oleg Nikitin knowingly attempted to illegally procure U.S. origin industrial equipment on behalf of the Russian government in violation of Russia Sectoral Sanctions,” said Ariel Joshua Leinwand, Special Agent in Charge of the Bureau of Industry and Security’s (BIS) Office of Export Enforcement, Miami Field Office, which oversees BIS investigations in the Southeast. “This sentence holds Nikitin accountable for his illicit efforts and is a deterrent to those who would violate U.S. exports laws and act contrary to the national security and foreign policy interests of the United States.”
“This defendant was part of a bold scheme to avert United States sanctions in order to put our goods in the hands of actors who are a direct threat to our national security,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “These sanctions are in place to protect our technology from being used against us. The FBI and our federal partners make it a top priority to stop anyone from bypassing them, and punishing anyone who tries to do so.”
“The illegal export of technology from the United States poses a significant national security threat to our citizens and warfighters,” said Cynthia A. Bruce, Special Agent in Charge, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS) Southeast Field Office. “This sentencing is the result of the tireless efforts of DCIS and our partner agencies in combating the circumvention of trade restrictions by prohibited nations.”
The Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, as well as the Defense Criminal Investigative Service and the Federal Bureau of Investigation are investigating the case with assistance from U.S. Customs and Border Protection and the Georgia Department of Natural Resources. Assistant U.S. Attorneys Jennifer G. Solari and Steven H. Lee are prosecuting the case, with assistance from Assistant U.S. Attorney Xavier A. Cunningham, Section Chief of the Asset Recovery Unit.
Ohio Woman Pleads Guilty to Conspiracy to Defraud the United States in Medical Kickback SchemeRead the Press Release
A former Insys Therapeutics sales representative, whose trial had commenced, pleaded guilty in the Southern District of Ohio to conspiracy to defraud the United States for her involvement in a scheme to pay kickbacks to a doctor to induce him to prescribe Subsys, a dangerous sublingual fentanyl spray.
According to court documents and evidence presented in court, Nicole Georges, 43, of Columbus, Ohio, admitted to her involvement in a kickback scheme initiated by Insys Therapeutics in which practitioners were incentivized to prescribe Subsys by receiving payments through a sham “Speaker Program.” Georges facilitated “speaker payments” to her co-defendant, Dr. Jimmy Henry, whose prescribing of Subsys dramatically rose during the period in which he received payments from Insys, despite not engaging in many of these speaking events. Georges also assisted in facilitating insurance paperwork through Insys to assure that the Subsys prescriptions issued by Henry would be reimbursed by insurance programs, including Medicare and Ohio Medicaid. Georges received significant bonuses for her so-called “sales” of Subsys. For his part, Henry pleaded guilty to the distribution of controlled substances and violating the Anti-Kickback Statute on Sept. 8.
Georges faces a statutory maximum penalty of 60 months’ imprisonment. 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, Acting U.S. Attorney Vipal J. Patel for the Southern District of Ohio, Special Agent in Charge J. William Rivers of the FBI’s Cincinnati Field Office, and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
The FBI, HHS-OIG, Ohio Medicaid Fraud Control Unit, and Ohio Bureau of Workers’ Compensation investigated the case.
Trial Attorneys Christopher Jason and Katherine Pridemore of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Appalachian Regional Prescription Opioid (ARPO) Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 90 defendants who are collectively responsible for distributing more than 105 million pills. Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,600 defendants who have collectively billed the Medicare program for approximately $23 billion. In addition, the Health and Human Services Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Northampton County Felon Sentenced to More Than 5 Years Following a Shooting in Rich SquareRead the Press Release
WILMINGTON, N.C. – A Rich Square man was sentenced on August 5, 2021 to 63 months in prison for felon in possession of ammunition. On April 2, 2021, Rasean Bolden pled guilty to the charge.
According to court documents and other information presented in court, Rasean Bolden, 39, got into a verbal altercation with two men in the area of Highway 308 and Highway 258 in Rich Square. Deputies from the Northampton County Sheriff’s Office were dispatched to the area following a report that one of the men had been shot and beaten. Deputies located the victim who had injuries to his head and jaw and was transported by emergency services to a local hospital where he survived. Deputies also recovered spent shell casings in the area where the shooting occurred. Bolden has several felony drug convictions and was a prior target of the Down East Drug Task Force for drug distribution in Northampton County. Bolden also has a prior conviction for conspiracy to commit robbery and many misdemeanor convictions.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Northampton County Sheriff’s Office investigated the case and Assistant U.S. Attorney Robert J. Dodson 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. 2:20-CR-25-M.
North Carolina Inmate Is Sentenced to 30 Months for Threatening to Kill A State Judge, Prosecutor, and JurorsRead the Press Release
CHARLOTTE, N.C. – Joel Michael Cliett, 45, of Taylorsville, N.C., was sentenced to 30 months in prison followed by three years of supervised release, for mailing a threatening communication, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS) join Acting U.S. Attorney Stetzer in making today’s announcement.
According to filed court documents and today’s sentencing hearing, on August 21, 2020, Cliett sent a threatening communication via U.S. Mail to a state judge in Gaston County. In the letter, Cliett claimed he was wrongly convicted of a crime, and threatened to kill the state judge, the judge’s family, the District Attorney, and the 12 jurors who convicted him of the crime. Cliett further stated in the letter that, “With enough C-4 I can kill all of you through the mail.” Cliett also boasted in the letter that “There is nothing you can do to me.” Cliett sent the threatening letter while he was incarcerated at the Alexander Correctional Institution in Taylorsville, N.C.
Cliett pleaded guilty on May 13, 2021, to mailing a threatening communication. He is currently in federal custody. The sentence of imprisonment was ordered to run consecutive to the North Carolina state sentence he is currently serving associated with his prior state convictions.
The FBI and USPIS investigated the case. Assistant U.S. Attorney Mark Odulio, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Nineteen Charged with Federal Gun Law Violations in the Waterloo, Iowa, AreaRead the Press Release
Law enforcement agencies in the Waterloo, Iowa, area continue to make communities safer by partnering to reduce gun related crimes and violence. The United States Attorney’s Office for the Northern District of Iowa announced charges and arrests involving nineteen individuals charged with federal gun crimes within the last week.
“Federal, state and local law enforcement remain committed to reducing violent crime by investigating and prosecuting offenses involving firearms,” said Acting United States Attorney Sean R. Berry. “Those who carry guns and commit violence and those who put guns in the hands of violent individuals in our communities will be held accountable.”
“Our focus has been two-fold, interrupting a subculture that illegally distributes firearms and holding members of their criminal organizations accountable, while targeting violent offenders whose indifference towards human life and the law made them a danger to the public,” said Waterloo Police Chief Doctor Joel Fitzgerald. “We promised our stakeholders that there would be significant consequences for offenders, and this joint effort allowed us to keep our word. For those who continue to participate in criminal activity, it's only a matter of time.”
“Violence by neighborhood gang members poses a direct and dangerous threat to innocent victims and our communities. Some of the people arrested this week are associated with gangs responsible for multiple homicides, drive-by shootings, and home invasions. Working alongside our law enforcement partners, FBI Omaha is focused on targeting the overall leadership of gangs that are driving the gun violence and other violent crimes in our communities,” said FBI Omaha Special Agent in Charge Eugene Kowel. “We will continue working to identify, investigate, and apprehend criminals responsible for these types of violent crimes until their entire criminal enterprise is dismantled.”
“The ATF has no greater mission than keeping firearms out of the hands of violent criminals. These cases not only demonstrate the lengths to which criminals will go to acquire firearms, but more importantly, ATF’s expertise and commitment to investigating such violations of federal law,” said Frederic Winston, Special Agent in Charge, Kansas City Field Division, ATF. “With our law enforcement partners and the United States Attorney’s Office, we will continue to work tirelessly to bring those who disregard the safety of our communities to justice.”
“We will continue to combat violence in our communities by apprehending violent offenders engaging in gang-related crimes through the strategic and precise targeting of gang organizations,” said Acting United States Marshal Christopher Barther. “Using the full operational capabilities of the United States Marshals Service and its law enforcement partners, this mission will continue to be a top priority.”
The work of federal, state, and local law enforcement agencies in Waterloo has resulted in the following charges in federal court in the last week:
Terrance Roby, age 23, Jyshawn Robertson, age 23, Ivan Clay, Jr., age 21, Davon Biddle, age 21, Alyssa Stovall, age 23, Jaheim Nickelson, age 19, Lloyd Allen, age 28, Dewon Campbell, age 22, Edward Roby, age 24, Destiny Harrington, age 21, Alissa Kucko, age 26, Abyehun Teferi age 26, Kalon Bruce, age 28, Xzavier Cummings, age 22, have all been charged.
The charges are contained in indictments filed within the last week in United States District Court in Cedar Rapids. Five additional defendants, whose charges remain under seal, have also been charged with violating federal firearm laws.
The indictments against Campbell, Edward Roby, Terrance Roby, Robertson, Nickelson, Allen III, and Bruce allege that these individuals possessed firearms after previously being convicted of at least one felony offense.
The indictment against Ivan Clay, Jr. alleges that on at least two separate occasions, Clay, Jr. possessed a firearm after having previously been convicted of a felony offense. The indictment also alleges that Clay, Jr., possessed marijuana with the intent to distribute it and that he possessed a firearm in relation to the drug trafficking offense.
The indictment against Kucko alleges that she made a false statement during the purchase of a firearm, specifically, that she was purchasing the firearm for herself when in reality she purchased the firearm for another person. The indictment also alleges Kucko possessed five firearms while being an unlawful user of marijuana.
The indictments against Biddle, Stovall, and Cummings allege they possessed a firearm while being unlawful users of marijuana.
If convicted on these charges, all defendants face at least a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and three years of supervised release following any imprisonment.
The indictment against Harrington allege that Harrington made a false statement when purchasing a firearm, specifically, she lied about her address and represented that she was not a user of controlled substance, when in fact she an unlawful user of marijuana. If convicted on this charge, Harrington faces a possible maximum sentence of 5 years’ imprisonment, a $250,000 fine, and three years of supervised release following any imprisonment.
As with any criminal case, a charge is merely an accusation and each defendant is presumed innocent until and unless proven guilty.
The cases were brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
These cases were investigated by the Waterloo Police Department, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Iowa Division of Narcotics Enforcement, and the United States Marshal’s Service.
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New Jersey Department of Children and Family Services Caseworker Charged with Possession of Child PornographyRead the Press Release
NEWARK, N.J. – A caseworker employed by the New Jersey Department of Children and Family Services, Division of Child Protection and Permanency, was charged today with possessing images of child sexual abuse, Acting U.S. Attorney Rachael A. Honig announced.
Trent Collier, 55, of Kearny, New Jersey, is charged by complaint with one count of possession of child pornography. He made his initial appearance by videoconference before U.S. Magistrate Judge Leda Dunn Wettre and was released on $50,000 unsecured bond.
According to documents filed in this case and statements made in court:
On Sept. 28, 2021, Collier arrived at Newark Liberty International Airport aboard a flight from the Dominican Republic. Law enforcement officials searched his luggage and located a tablet device and a cellular phone. A forensic search of both devices identified at least two images of child sexual abuse depicting prepubescent children. Based on an analysis of the phone, Collier sent these images via WhatsApp message.
The maximum penalty if convicted is 10 years in prison and a maximum fine of $250,000 or twice the gross pecuniary gain to the defendant or twice the gross pecuniary loss to someone else, whichever is greatest.
Acting U.S. Attorney Honig credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations under the direction of Special Agent in Charge Jason J. Molina in Newark, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Katherine Calle of the Criminal Division in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
New Haven Man Pleads Guilty to Federal Narcotics Distribution ChargeRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that JAMES LEE, 24, of New Haven, pleaded guilty yesterday before U.S. District Judge Kari A. Dooley in Bridgeport to possession with intent to distribute heroin, cocaine and cocaine base (“crack”).
According to court documents and statements made in court, on March 13, 2021, New Haven Police approached Lee as he was sitting in a car at a gas station. The car had fled from police on March 8. A search of Lee’s person revealed $3,815 and a search of the car revealed $3,443. Officers then found a hidden compartment in the vehicle’s center counsel that contained heroin, crack and cocaine packaged for distribution, and a loaded 9mm handgun.
On the morning of April 5, 2021, a New Haven Police detective traveling in an unmarked police cruiser in the area of Orange Street and Wall Street identified another car that had fled from West Haven Police during an attempted traffic stop on April 1. The detective followed the car to a location of Brown Street, where he observed occupants of the vehicle engage in what appeared to be street-level drug transactions, and then to a location on Elm Street. On Elm Street, James Lee, who had been released on bond, and Darryl Russell exited the car and entered a building. Lee was arrested after he exited the building. Russell ignored commands not to leave the scene but was apprehended a short distance away after he was found hiding in a trash can. A search of their car revealed heroin, crack and cocaine packaged for distribution, and more than $2,000 in cash.
Lee has been detained since April 5, 2021. Judge Dooley scheduled sentencing for December 21, 2021, at which time Lee faces a maximum term of imprisonment of 20 years.
Russell, 32, of New Haven, has been detained since his arrest on May 21, 2021. On that date, he possessed additional narcotics packaged for distribution.
On September 14, 2021, Russell pleaded guilty in federal court to possession with intent to distribute, heroin, cocaine and cocaine base. He is scheduled to be sentenced on December 7, 2021.
This matter has been investigated by the New Haven Police Department and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Nathaniel J. Gentile.
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.
Mississippi Teen Sentenced to 37 Months in Federal Prison for ArsonRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Cornelius Hendrix, age 19, of Starkville, to Maryland to 37 months in federal prison, followed by five years of supervised release, for arson within special maritime and territorial jurisdiction.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Fire Chief Trisha L. Wolford of the Anne Arundel County Fire Department.
According to his guilty plea, on August 21, 2020 Hendrix poured lighter fluid in areas of his father’s and stepmother’s Fort Meade military home, including outside his parents’ bedroom door, and the front door welcome mat. The presence of an ignitable liquid was also detected at the top of the stairs near his father’s and stepmother’s bedroom.
Hendrix then ignited a fire within the home before jumping off the rear porch and injuring his leg.
As stated in his plea agreement, the fire was extinguished with minimal property damage and no physical injuries. However, Hendrix’s father and stepmother’s lives were placed in jeopardy as a result of Hendrix’s conduct.
After being medically evaluated and cleared, Hendrix was taken to Fort Meade Military Police Department for an interview. Hendrix knowingly and voluntarily acknowledged spreading the lighter fluid and lighting the fire.
Hendrix remains in custody pending transport to face two unrelated counts of attempted murder in Oktibbeha County, Mississippi, stemming from an alleged shooting which preceded the arson in August of 2020. That matter is charged by criminal complaint, which is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner commended the ATF, FBI, the Anne Arundel County Fire Department, the Howard County State Fire Marshal’s Office, the Fort Meade Fire Department and the Fort Meade Military Police for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Judson T. Mihok who is prosecuting the case.
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Meth conspiracy sends Butte man to prison for more than four yearsRead the Press Release
MISSOULA — A Butte drug dealer who admitted to receiving 10 pounds of methamphetamine in two shipments for distribution in the community was sentenced today four years and six months in prison to be followed by five years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
David Ray Shaver, 34, pleaded guilty in June to conspiracy to possess with intent to distribute meth.
U.S. District Judge Dana L. Christensen presided.
In court documents in the case, the government alleged that law enforcement learned Shaver was involved in drug trafficking in Montana and was accepting packages of meth through the mail for distribution. When interviewed, Shaver admitted to purchasing meth for $6,000 a pound. Shaver told investigators he accepted one package containing six pounds of meth in December 2018 and another package containing four pounds of meth in January 2019. Shaver worked with other co-conspirators to distribute meth from about August 2018 until February 2019. Ten pounds of meth is the equivalent of 36,240 doses.
Assistant U.S. Attorney Ryan G. Weldon prosecuted the case, which was investigated by Montana Division of Criminal Investigation, Homeland Security Investigations, U.S. Postal Service and the Drug Enforcement Administration.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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