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29 September 2021
Brockton Man Pleads Guilty to Selling Drugs via the Dark WebRead the Press Release
BOSTON – A Brockton man pleaded guilty today in federal court in Boston in connection with conspiring to manufacture and distribute controlled substances.
Binh Thanh Le, 25, pleaded guilty to conspiracy to manufacture, distribute and possess with intent to distribute 3,4-Methylenedioxymethamphetamine (MDMA), commonly known as ecstasy, Ketamine and Alprazolam (Xanax). U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Jan. 19, 2022.
Le was indicted in June 2019 along with co-conspirators Steven McCall and Allante Pires.
According to court records, Le received wholesale quantities of controlled substances in the mail. Le and, allegedly, his co-conspirators then processed and manufactured those controlled substances at an office space Le rented in Stoughton. To distribute the drugs, Le created and operated a vendor site called “EastSideHigh” on Dark Net Market websites, where various drugs for sale, including cocaine, MDMA, Ketamine and Xanax, were advertised.
During the investigation, an undercover agent ordered MDMA from one of the “EastSideHigh” vendor sites on a Dark Net Marketplace, and later observed Le deposit the envelope containing the order into a U.S. Postal Service collection box in Stoughton. Numerous other envelopes containing MDMA and Ketamine, which are connected to this drug distribution scheme, were intercepted.
On March 27, 2019, Le met with undercover law enforcement officers at a hotel in Norwood to exchange $200,000 worth of Bitcoin for cash. Le was arrested after he transferred the bitcoin to the agents.
More than 18 kilograms of MDMA, almost seven kilograms of Ketamine, more than $200,000 worth of Bitcoin and more than $100,000 in cash were seized by authorities. Investigators also recovered from the office space in Stoughton a computer with the “EastSideHigh” vendor page open, numerous packages containing MDMA and Ketamine, various shipping and packaging materials and a pill press.
McCall and Pires have pleaded not guilty and are considered innocent until proven guilty.
Acting United States Attorney Nathaniel R. Mendell; Joshua McCallister, Acting Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; Jennifer De La O, Director of Field Operations of U.S. Customs and Border Protection, Boston Field Office; and Norfolk County District Attorney Michael W. Morrissey made the announcement. Special assistance with the investigation was provided by the Homeland Security Investigations in Colorado; Postal Inspectors from around the country; and the Stoughton, Norwood, and Brockton Police Departments. Assistant U.S. Attorney James E. Arnold of Mendell’s Narcotics & Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Bland County Man Pleads Guilty to 17 Counts of Production of Child Pornography, Illegal Possession of a FirearmRead the Press Release
ABINGDON, Va.– A Bland County, Virginia man pleaded guilty yesterday to 17 counts of producing child pornography at his home and illegally possessing a firearm after previously being convicted of a felony offense.
According to court documents, William Dean Blankenship, 42, was a previously convicted felon residing in Bland County, Virginia. On February 12, 2021, the Bland County Sheriff’s Office and Virginia State Police executed a state search warrant at Blankenship’s home after receiving information that the defendant had engaged in sexual acts with children and was in possession of child pornography.
During that search, law enforcement found a firearm, cellular phone and other electronic devices that belonged to Blankenship. Blankenship’s phone contained over 50 video files of child pornography produced by the defendant which depicted him engaging in sexual intercourse with two minors under the age of 18. Further investigation determined Blankenship routinely coerced and enticed the two minors to engage in sexual activity with Blankenship and with one another after providing the minors with narcotics and other controlled substances. Blankenship’s abuse began when the minors were approximately 14 and 13 years old.
“Blankenship repeatedly used coercive means to abuse his child victims, and now faces a lengthy prison sentence for these horrific acts,” Acting United States Attorney Bubar stated today. “I am thankful for the hard work of the Department of Homeland Security Investigations and Virginia State Police, who will continue to investigate and, together with our office, prosecute anyone like Blankenship who seeks to prey on our children.”
“Homeland Security Investigations is proud to have partnered with the Bland County Sheriff’s Office, the Virginia State Police, and the U.S. Attorney’s Office to hold Mr. Blankenship accountable for his reprehensible actions,” said Raymond Villanueva, Special Agent in Charge of Washington D.C. Homeland Security Investigations. “His sentencing should serve as a reminder to others who victimize children; we will work tirelessly to bring predators to justice.”
Blankenship pleaded guilty yesterday to 17 counts of production of child pornography and one count of illegal possession of a firearm by a previously convicted felon. He is scheduled to be sentenced on December 17, 2021 and faces an agreed upon sentencing range of between 20-50 years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Department of Homeland Security Investigations and Virginia State Police are investigating the case.
Assistant U.S. Attorney Daniel J. Murphy is prosecuting the case.
Birmingham Business Owner Sentenced for Wire Fraud in Connection with a $23 Million Scheme to Defraud Local Real Estate InvestorsRead the Press Release
DETROIT - Viktor Gjonaj, 44, a Troy based commercial real estate broker and investor was sentenced today to 53 months in prison after having pleaded guilty to devising and executing a scheme to obtain money by means of false material promises and representations from victim-investors, Acting U.S. Attorney Saima S. Mohsin announced.
Mohsin was joined in the announcement by Special Agent in Charge Timothy T. Waters, Federal Bureau of Investigation.
Imposing the sentence was Honorable Linda Parker, United States District Judge.
According to court records, Gjonaj admitted that in June 2016, he thought he had discovered a guaranteed way to win huge jackpots in the Michigan Lottery Dailey 3 and 4 games. To accomplish this, he had to substantially increase the times he played and amounts he spent. In 2017, Gjonaj began losing more money than he won and more money than he could afford to lose. Rather than ending his gambling, Gjonaj devised a scheme to trick individuals into giving him money by falsely promising them he would invest it in lucrative real estate deals. To make the deals look legitimate, Gjonaj created a fake title company and instructed the victim-investors to wire transfer money into the bank account of the fake company. Gjonaj described the fraudulent real estate deals in great detail and encouraged victim-investors to continue giving him money by disbursing payments to them which he falsely claimed were profits on their “investment.” By early 2019, Gjonaj was betting over $1 million a week on Michigan Lottery games using money fraudulently obtained from victims. In August 2019, Gjonaj’s scheme to defraud unraveled resulting in over $23 million in losses to victims.
Following his release from prison, Gjonaj will serve a three-year term of supervised release and the Court also ordered Gjonaj to make restitution to his victims in the amount of $25,299,120.00 and to forfeit $ $19,025,000.
“White collar criminals may use sophisticated methods and apparently legitimate businesses, but their crimes amount to nothing more than stealing other people’s money. Gjonaj used his previous business successes and relationships with victim-investors to lure them into his scheme, to convince them his false promises were true, and to steal their money,” said Acting United States Attorney Saima S. Mohsin.
"In just over two years, Viktor Gjonaj stole more than $23 million from his victims with promises of lucrative real estate deals," said Timothy Waters, Special Agent in Charge of the FBI in Michigan. "Gjonaj violated the trust his victims placed in him and left many financially devastated. Today's sentence provides the victims with a measure of justice and serves as a signal to others that white collar criminals will be aggressively pursued by the FBI."
The investigation was conducted by the FBI. The Securities and Exchange Commission’s cooperation in this investigation is appreciated.
Berks County Group to Pay $121,655 under the False Claims Act for Alleged Double-Billing of Home Renovation ExpensesRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that the Berks County Coalition to End Homelessness (“BCEH”) will pay $121,655 to resolve False Claims Act allegations that the public-private partnership organization illegally double-billed the U.S. Department of Housing and Urban Development (“HUD”) for renovations performed on a property located in Reading, Pennsylvania.
The settlement resolves allegations that BCEH knowingly submitted duplicate requests for payment for the framing, electrical, and plumbing renovations performed on a single project. In the settlement agreement, the United States alleges that on September 14, 2017, BCEH knowingly submitted a request to draw approximately $40,000 from HUD’s Continuum of Care Program to be used towards renovation costs on the project. Then, on December 14, 2017, BCEH is alleged to have knowingly submitted to the City of Reading’s HOME Program a request for reimbursement of the same renovation costs that were to have been paid by the earlier draw request. The United States alleges that by submitting for the same renovation costs twice, BCEH received approximately $40,000 to which it was not entitled.
“Our office will pursue anyone that that abuses federal programs for their personal gain,” said Acting U.S. Attorney Williams, “Those entrusted with properly administering HUD funds must do so honestly or face the consequences.”
“Duplicate billing will not be tolerated and will be investigated by the U.S. Department of Housing and Urban Development, Office of Inspector General. HUD-OIG is committed to working with the Department of Justice to ensure that HUD funds are used for their intended purpose. In this case, HUD program funds were misappropriated by BCEH when they double billed the City of Reading, PA to obtain unauthorized HUD funding desperately needed in the fight against homelessness,” said Special Agent in Charge Shawn Rice. “Today’s settlement underscores the government’s commitment to protecting HUD’s programs and holding organizations like BCEH accountable for their actions.”
This case was investigated by the U.S. Department of Housing and Urban Development, Office of Inspector General and the United States Attorney’s Office’s fraud investigator Frank O’Connor. Assistant United States Attorney Paul J. Koob handled the settlement.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Anson County Man Is Sentenced to Six and A Half Years on Gun ChargeRead the Press Release
CHARLOTTE, N.C. – Dyral Keith Shankle, 34, of Wadesboro, N.C., was sentenced to 78 months in prison today, followed by two years of supervised release, for a firearms offense, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina.
According to information contained in filed court documents and today’s sentencing hearing, on January 22, 2020, at approximately 11:00 p.m., Shankle drove his vehicle to a Wadesboro hospital emergency room. When Shankle arrived at the hospital, he got out of his vehicle and ran into the hospital holding a gun in his hand. Court records show that when the hospital security officer asked Shankle to hand over his gun, Shankle refused and claimed that “people were coming after him.” The security officer was eventually able to take the firearm, which was loaded with a high capacity magazine, after Shankle moved his finger off the trigger. Shankle was subsequently treated by hospital staff for a gunshot wound. Over the course of the investigation, law enforcement recovered two additional firearms that belonged to Shankle, ecstasy pills, marijuana and more than $10,000 in cash.
In October 2020, Shankle pleaded guilty to possession of a firearm by a felon. He is currently in federal custody. Upon designation of a federal facility, he will be transferred to the custody of the federal Bureau of Prisons.
In making today’s announcement, Acting U.S. Attorney Stetzer commended the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Wadesboro Police Department, and the Monroe Police Department for their investigation of the case. Acting U.S. Attorney Stetzer also thanked Anson County District Attorney Reece Saunders for his office’s coordination and assistance throughout the case.
Special Assistant U.S. Attorney Stephanie Spaugh, of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Anamosa Man Charged with Being a Prohibited Person in Possession of Firearms and AmmunitionRead the Press Release
Douglas Hurt, age 41, of Anamosa, Iowa, has been charged with being a prohibited person in possession of firearms and ammunition. The charge is contained in an Indictment unsealed on September 17, 2021, in United States District Court in Cedar Rapids.
The Indictment alleges that, in June 2020, Hurt possessed two firearms and ammunition after having been convicted of one felony and three misdemeanor crimes of domestic violence.
If convicted, Hurt faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and three years on supervised release following any imprisonment.
Hurt appeared for a detention hearing on September 23, 2021, in federal court in Cedar Rapids and was released on bond. Hurt’s next appearance for trial is set for November 22, 2021.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
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.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and is being investigated by the Jones County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Iowa Division of Criminal Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 21-59.
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American Honda Finance Corp. Agrees to Pay over $1.5 Million to Compensate Servicemembers Whose Federal Rights Were ViolatedRead the Press Release
LOS ANGELES – The Department of Justice announced today that American Honda Finance Corporation (AHFC) has agreed to settle a federal lawsuit alleging that it violated the Servicemembers Civil Relief Act (SCRA) by failing to refund a type of up-front lease payment to servicemembers who lawfully terminated their motor vehicle leases early. Under the settlement agreement, AHFC must pay up to $1,585,803 in compensation to 714 servicemembers who were harmed by the alleged violations.
“Servicemembers selflessly heed the call to duty, and their sacrifice should not subject them to unlawful economic harm,” said Acting U.S. Attorney Tracy L. Wilkison. “This settlement is the latest resulting from investigations my office has conducted in conjunction with Justice Department attorneys to ensure our brave men and women in uniform can perform without having to worry about unjust actions at home.”
“This case illustrates the Justice Department’s steadfast commitment to protecting the rights of servicemembers,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We will continue to vigorously enforce federal law to ensure that no servicemember faces unlawful treatment by auto leasing companies or other entities.”
The SCRA permits servicemembers to terminate motor vehicle leases early without penalty after entering military service or receiving qualifying military orders for a permanent change of station or to deploy. When servicemembers lawfully terminate motor vehicle leases, the SCRA requires that they be refunded all lease amounts paid in advance.
AHFC is a California-based auto financing company that provides auto leasing for customers of Honda and Acura. Individuals who lease vehicles from AHFC, including servicemembers, often contribute an up-front monetary amount at lease signing, in the form of a cash payment, credit for a trade-in vehicle, or rebates or other credits. A portion of this up-front amount can be applied to the first month of the lease and certain up-front costs such as licensing and registration fees. The remainder, which is called the capitalized cost reduction amount, operates to reduce the monthly payment the lessee must make over the term of the lease.
Today’s settlement, which must be approved by a federal judge, resolves a lawsuit filed today by the Department of Justice in United States District Court in Los Angeles. The lawsuit alleges that, while AHFC regularly provided refunds of cash payments toward capitalized cost reduction made by servicemembers, AHFC failed to provide refunds of vehicle trade-in credit that was applied toward capitalized cost reduction, in violation of the SCRA.
In addition to compensating 714 servicemembers, the settlement requires AHFC to pay $64,715 to the U.S. Treasury, as well as to adopt new policies and implement new training requirements.
Servicemembers and their dependents who believe their SCRA rights have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations can be found at http://legalassistance.law.af.mil/.
The Justice Department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section and U.S. Attorney’s Offices throughout the country. Since 2011, the department has obtained over $476 million in monetary relief for over 121,000 servicemembers through its enforcement of the SCRA. Additional information on the department’s enforcement of the SCRA and other laws protecting servicemembers is available at www.servicemembers.gov
Acton Man Convicted of Scheme to Defraud the Treasury Department of over $50 Million in Tax-Free Energy GrantsRead the Press Release
BOSTON – An Acton man was convicted by a federal jury yesterday in connection with his role in a scheme to defraud the U.S. Treasury Department of more than $50 million in tax-free energy grants as part of the American Recovery and Reinvestment Act of 2009.
Christopher N. Condron, 49, was convicted following a 13-day jury trial of conspiracy to defraud the United States with respect to claims and three counts of wire fraud. U.S. District Court Judge Indira Talwani scheduled sentencing for Feb. 4, 2022.
In August 2017, Condron was indicted along with his partner, Jessica Metivier, for conspiring to submit fraudulent applications to the Treasury Department for energy grants available as part of the American Recovery and Reinvestment Act of 2009. The Recovery Act provided tax-free grants to individuals and businesses who put certain “specified energy property”—such as wind farms and gasification systems that convert trash into electricity—into service in a trade or business.
From May 2009 to June 2013, Condron and Metivier submitted fraudulent grant applications to the Treasury Department on behalf of four different Massachusetts companies, Acton Bio Energy, Concord Nurseries, Kansas Green Energy and Ocean Wave Energy. For each of the applications, Condron and Metivier falsely claimed that Metivier and her entities had acquired, placed into service, or started construction of energy property, which included three different bio-fuel gasification systems, purportedly built at a cost of approximately $88 million, and an $84 million wind farm project. Condron and Metivier sought to be reimbursed for more than $50 million based on those costs—which they never actually incurred. To support their applications, Condron and Metivier submitted fraudulent documentation to a Massachusetts-based attorney who, in turn, submitted the applications to the Treasury Department on their behalf. Evidence at trial demonstrated that Condron vastly overstated property costs in the grant applications and as a result, defrauded the government out of more than $8.7 million. Additionally, further evidence showed that Condron attempted to obtain another $17 million in energy grants.
On Feb. 26, 2021, Metivier was sentenced by Judge Talwani to one year of probation.
The charge of conspiracy to defraud the United States with respect to claims provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement. Special assistance was provided by the U.S. Department of Treasury, Office of Inspector General, Office of Investigations. Assistant U.S. Attorneys Neil J. Gallagher, Jr. and Elysa Q. Wan of Mendell’s Criminal Division are prosecuting the case.
24 Federal Prosecutors Take the Oath of Office in the Northern District of OklahomaRead the Press Release
TULSA, Okla. – Twenty-four federal prosecutors have joined the U.S. Attorney’s Office within the last year and were sworn-in Wednesday by Chief U.S. District Judge John F. Heil III, announced Acting U.S. Attorney Clint Johnson.
The prosecutors were hired from across the nation to help prosecute the exponential increase in Indian Country cases following the Supreme Court’s decision in McGirt v Oklahoma. The Court asserted the Creek Nation reservation was never disestablished by Congress when Oklahoma became a state; therefore, criminal jurisdiction within the reservation’s boundaries lay with the Federal Government and the Muscogee Nation.
“Twenty-four Assistant U.S. Attorneys have answered the call to uphold federal law and serve the citizens of the Northern District of Oklahoma,” said Acting U.S. Attorney Clint Johnson. “I have witnessed their talent, innovation and willingness to learn as this office has faced numerous challenges over the last year due to our expanded jurisdiction. I am proud of their work and commend them for their spirit of service and dedication to justice.”
Judge Heil thanked the prosecutors for their service to the United States and to the district’s citizens. He further explained that as prosecutors for the United States they wield great power, but he reminded them to do so with wisdom and discernment. He then administered the oath of office to the following individuals:
Adam Bailey is a Colorado native who attended the University of Colorado and received his JD from the University of Denver. After nearly ten years as a state prosecutor, he served as counsel for the Department of Homeland Security’s Denver Field Office before coming to Oklahoma and the Northern District of Oklahoma.
Justin Bish attended undergraduate and law school at The Pennsylvania State University. While serving as an Assistant U.S. Attorney in the Western District of New York, Justin volunteered for a six-month detail to the Northern District of Oklahoma to assist with the large numbers of Indian Country cases following the Supreme Court’s ruling in July 2020 and has remained with the office.
Niko Boulieris grew up in Chicago and holds degrees from Marquette University and the Hamline University School of Law in St. Paul, Minnesota. He came to the Northern District of Oklahoma from the Hennepin County Attorney's Office in Minneapolis, after five years as a prosecutor.
John Brasher graduated from Texas A&M and obtained his law degree from Oklahoma City University. He served as an Assistant District Attorney in Tulsa County for 12 years after two years with the Oklahoma Attorney General’s and came to the Northern District of Oklahoma Office.
Steve Briden went to law school at the University of New Hampshire School of Law. After graduation, he worked for New Hampshire Governor Maggie Hassan, and then served as a prosecutor in Carroll County, New Hampshire, for four years before joining the Northern District of Oklahoma.
Thomas Buscemi attended undergraduate and law school at the University of Georgia. He joined the Northern District of Oklahoma after serving as an Assistant District Attorney in Glynn County, Georgia, for five years.
Julie Childress graduated from Appalachian State University and received her JD from Elon University School of Law. Before joining the Northern District of Oklahoma, she was a member of the U.S. Women’s Bobsled Team, interned with the United Nations at the Hague, and served as the Domestic Violence prosecutor in North Carolina.
Chantelle Dial grew up in Washington State, where she taught junior high Language Arts before attending Michigan State University College of Law. She joined the U.S. Attorney’s Office in Seattle as the 2017 Department of Justice Honors Indian Country Fellow and later volunteered for a detail to the Northern District of Oklahoma after the Supreme Court’s ruling. She has remained with the office.
Gina Gilmore graduated from the University of Texas and received her JD from the University of Arkansas School of Law. After serving as an Assistant District Attorney in Galveston County, Texas, for eight years, she became an Assistant U.S. Attorney in the Western District of Texas. She initially came to the Northern District of Oklahoma as a volunteer following the Supreme Court’s ruling and has remained with the office.
Michael Harder graduated from Willamette University in 2015 and obtained his law degree from the University of Oregon in 2020. While in law school, he interned at the Northern District of Oklahoma. After graduation, he rejoined the office as the 2020 Department of Justice Honors Indian Country Fellow.
George Jiang graduated from Vanderbilt University and received his JD from Notre Dame Law School. He clerked for a U.S. Magistrate Judge in the Southern District of Texas and a U.S. District Judge in the Western District of Pennsylvania. Before joining the Northern District of Oklahoma, he served as a Special Assistant U.S. Attorney at the U.S. Attorney’s Office in Washington D.C.
Aaron Jolly completed his undergraduate degree at Columbia College while working as a deputy sheriff and detective in Camden, Missouri. He later earned his JD from the University of Missouri–Columbia, served for three years as a Special Assistant U.S. Attorney in the Western District of Missouri, and then joined the Northern District of Oklahoma.
Chris Kelly attended Binghamton University and earned his JD from the University of Richmond. Before joining the NDOK, he served as an Assistant District Attorney in New York for fourteen years.
Valeria Luster received her BA from Oklahoma State University and a JD from the University of Oklahoma College of Law. Before joining the Northern District of Oklahoma, she served as an Assistant District Attorney in Adair County for nearly six years.
Nathan Michel is a native of Dodge City, Kansas, and a graduate of Baker University and the University of Kansas School of Law. Before joining the U.S. Attorney’s Office, he served for ten years as a judge advocate in the U.S. Marine Corps.
David Nasar attended the New York University School of Law and graduated in 2003. Before joining the Northern District of Oklahoma, he served an Assistant District Attorney at the New York County District Attorney’s Office for 17 years. Nasar joined the office’s Organized Crime Drug Enforcement Task Force team.
Leah Paisner received her BA from the University of Virginia and her JD and MA from American University. Before joining the Northern District of Oklahoma, she was a Special Assistant U.S. Attorney in the U.S. Attorney’s Office for the Northern District of California in Oakland.
Alex Scott grew up in Marshall, Missouri, before attending the University of Missouri and later graduating from the University of Missouri–Kansas City School of Law. He joined the Northern District of Oklahoma in August, after serving as an Assistant District Attorney in Kansas for more than eight years.
Brandon Skates was born and raised in Indiana, where he earned his law degree from Indiana University’s McKinney School of Law. Before joining the Department of Justice, he spent six years as an Assistant District Attorney and another two years as a Deputy Attorney General in Indiana.
Stacey Todd received her BA from Benedictine College and a JD from Quinnipiac University School of Law. Before joining the Northern District of Oklahoma, she served as the Assistant District Attorney of Modoc County for more than five years. She also served two years in civil litigation in Southern California.
Ben Tonkin grew up in Asheboro, North Carolina, and graduated from Duke University and the University of Pennsylvania Carey Law School. He practiced at a firm in New York City and as an Assistant U.S. Attorney in the Western District of Texas. After the Supreme Court’s ruling, Ben volunteered to come to the Northern District of Oklahoma to assist and has remained with the office.
Sandra Urban was born and raised in Delaware County, Pennsylvania, attended Widener University, and earned her JD from the Stetson University College of Law. Before arriving in the Northern District of Oklahoma, she served as an Assistant District Attorney in the greater Philadelphia area for 12 years.
David Whipple holds undergraduate and graduate accounting degrees from Brigham Young University and received his JD from George Washington University Law School. Before joining the Northern District of Oklahoma, he worked at Fried Frank in Washington D.C. for three years and as trial counsel for the U.S. Securities and Exchange Commission for seven years in Ft. Worth and Salt Lake City. Whipple works white collar crime cases for the district.
Cymetra Williams graduated from Holy Cross, earned two masters degrees at Columbia University, and received her law degree from Seton Hall. After two judicial clerkships, she worked in private practice and served as an Assistant U.S. Attorney in New Jersey. She later volunteered to assist the Northern District of Oklahoma following the Supreme Court’s ruling and has remained with the office.
28 September 2021
Wilson Man Determined to be Career Offender, Sentenced for Distributing Illegal DrugsRead the Press Release
NEW BERN, N.C. – A Wilson man was sentenced today to 151 months in prison for two counts of Distribution of Cocaine Base (Crack); one count of Distribution of Cocaine Base (Crack) and Marijuana; and two counts of Possession with Intent to Distribute Cocaine Base (Crack).
According to court documents, Frank Roosevelt Giggetts, Jr., pled guilty to the charges on February 5, 2020.
In March 2018, officers with the Wilson Police Department learned that Giggetts was selling cocaine base (crack) from his residence in Wilson. Officers then conducted three controlled purchases of controlled substances from Giggetts, including cocaine base (crack) and marijuana.
On August 2, 2018, officers executed a search warrant at Giggetts’s residence and seized additional cocaine base (crack).
On November 9, 2018, Giggetts was arrested on outstanding warrants and was found in possession of additional cocaine base (crack).
Giggetts has 22 prior convictions, including convictions for assault, burglary and drug trafficking. Based on his criminal history, Giggetts was determined to be a Career Offender, resulting in an enhanced recommended sentence.
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 Wilson Police Department investigated the case and Assistant U.S. Attorney Scott A. Lemmon prosecuted the case.
This case is part of the United States Attorney’s Office’s Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For additional information about this initiative, click here https://www.justice.gov/usao-ednc/tbnc.
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. 5:19-cr-00241-FL-1.
Wenham Man Charged with Fraud Scheme Related to COVID-19 Pandemic ReliefRead the Press Release
BOSTON – A Wenham man was arrested today in connection with a scheme to obtain fraudulent Paycheck Protection Program funds made available under the Coronavirus Aid, Relief, and Economic Security (CARES) Act by submitting false applications.
James Joseph Cohen, 58, was charged with one count of bank fraud. Cohen was released on conditions following an initial appearance in federal court in Boston.
According to the charging documents, between April 2020 and September 2021, Cohen submitted six false applications to financial institutions and to the Small Business Administration to obtain pandemic-related relief funds on behalf of companies that he controlled. It is alleged that in the applications, Cohen falsely misstated the revenues of the companies, the persons employed, or amounts paid to those employees in the 12-month period preceding the application. In total, Cohen is alleged to have fraudulently obtained more than $1.2 million in pandemic relief funds based upon these false submissions.
The charge of bank fraud provides a sentence of up to 30 years in prison, five years of supervised release and a fine of up to $1 million or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorney Sara Miron Bloom of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Washington Man Sentenced to 120 Months in Prison for Attempted Enticement of a Child to Engage in Sexual ActivityRead the Press Release
PEORIA, Ill. – On September 21, 2021, United States District Court Judge James E. Shadid sentenced Thomas R. Alt, 28, of Washington, Ill., to 120 months of imprisonment, to be followed by 15 years of supervised release, for Attempted Enticement of a Child to Engage in Sexual Activity.
Alt was found guilty on May 5, 2021, following a jury trial, in which the United States presented evidence to establish that Alt used the mobile application Grindr to arrange to meet a person he believed to be a 15-year-old minor for sexual activity.
The Federal Bureau of Investigation, Springfield Division, Illinois State Police, Peoria County Sheriff’s Office, and the Peoria Metropolitan Enforcement Group (MEG) investigated the case. Assistant U.S. Attorneys Paul Morris and Keith Hollingshead-Cook represented the government in the prosecution.
“The district-wide ongoing operation to investigate, arrest, and prosecute individuals who use modern communication technology to solicit sex with people they believe to be children has been a tremendous success,” said Acting United States Attorney Doug Quivey. “We will continue to work closely with the FBI and our other law enforcement partners to identify and prosecute those who intend to sexually harm children.”
“A child’s vulnerability to sexual exploitation is magnified over the internet,” said FBI Special Agent in Charge David Nanz. “Today’s sentencing effectively ends Alt’s ability to sexually exploit children and underscores the FBI’s commitment to keep our children safe by going after those who seek to exploit their innocence online. The FBI, along with our law enforcement partners, will aggressively investigate where persons prey on our children.”
The case against Alt was brought as part of Project Safe Childhood, a Department of Justice initiative led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend and prosecute individuals who exploit children via the internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Virginia Beach Businessman Sentenced for $2.5 Million Tax FraudRead the Press Release
NEWPORT NEWS, Va. – A Virginia Beach man was sentenced yesterday to 48 months in prison for defrauding the IRS out of more than $2.5 million of taxes by, among other things, hiding assets, making false statements about his ability to pay, using a nominee company to conduct business, and diverting huge sums of money to pay creditors instead of the IRS.
“The defendant has been held accountable for attempting to evade the payment of over $2.5 million in tax obligations while he was earning and spending millions of dollars on personal luxury expenses and the mortgage for his oceanfront home in Virginia Beach,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “The sentence imposed in this case should send a clear message of deterrence to others who may be considering unlawfully enriching themselves at the expense of the American taxpayer.”
According to court documents, Richard Yanek, 53, has owned and operated a credit card processing business since at least 1995. Between 2013 and 2018, Yanek withheld employment taxes from his employees, but he failed to consistently pay more than a million dollars of those withholdings to the IRS. Each year, Yanek provided false employment tax forms to his employees, who filed their own taxes and mistakenly believed that the amounts withheld from their wages had been paid to the Social Security program.
“Yanek betrayed his employees’ trust and violated U.S. tax laws for personal financial gain,” said Darrell J. Waldon, Acting Special Agent in Charge of the IRS-Criminal Investigation (IRS-CI) Washington, D.C. Field Office. “He deliberately chose not to pay over employment taxes he withheld from his employees, instead opting to use those monies to fund a life of opulence. For years, he spent millions of dollars on luxury items. Today, justice was served.”
Until recently, Yanek had not filed a personal income tax return or paid personal income taxes since 2010, despite earning and spending millions of dollars on the mortgage for his oceanfront home, personal credit cards, private school tuition, and golf and yacht club dues. Yanek had his personal tax returns prepared by his accountant for the years 2011 through 2016, all of which reported substantial taxes due and owing. However, Yanek intentionally chose not to file these returns with the IRS, and he later made false statements to the IRS and law enforcement when asked why those returns had not been filed.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Darrell J. Waldon, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after sentencing by U.S. District Judge Raymond A. Jackson.
Assistant U.S. Attorney Mack Coleman and former Assistant U.S. Attorney Howard Zlotnick prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:21-cr-26.
Undocumented Individual Sentenced for Trafficking of FirearmsRead the Press Release
LAS VEGAS, Nev. – An undocumented individual residing in Las Vegas was sentenced today to 46 months in prison for trafficking firearms, specifically three AK-47 rifles and one AR-style rifle.
In February 2021, Eduardo Israel Islas-Orozco, 38, pleaded guilty to two counts of illegal alien in possession of a firearm. In addition to the prison term, U.S. District Judge Kent J. Dawson sentenced Islas-Orozco to three years of supervised release.
According to court documents and admissions made in court, on May 19, 2016 and June 9, 2016, Islas-Orozco — who is undocumented — sold three AK-47s and one AR-style semi-automatic firearms to an undercover Las Vegas Metropolitan Police Department (LVMPD) task force officer working with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). When selling these firearms, Islas-Orozco insisted on completing a bill of sale, but did not use his own name as the seller. He also admitted that he believed the firearms would be transported out of the United States to Mexico.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Patrick Gorman for the ATF made the announcement.
This case was investigated by the ATF, with assistance by LVMPD. Assistant U.S. Attorney Jared Grimmer prosecuted the case.
The case was brought as part of Project Safe Neighborhoods (PSN), a nationwide program by the Department of Justice that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Department announced the reinvigoration of PSN. For more information about PSN, visit www.justice.gov/usao-nv.
The public is urged to report illegal firearms activity to the ATF at 1-800-ATF-GUNS (1-800-283-4867).
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U.S. Attorney Announces Unsealing of Indictment Charging Six Individuals and One Corporate Entity with Tax Fraud Conspiracy, and Related Guilty PleaRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, Stuart M. Goldberg, Acting Deputy Assistant Attorney General of the Justice Department’s Tax Division, and James C. Lee, Chief of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today the unsealing of an Indictment charging six foreign individuals and a Swiss financial services company with conspiring to defraud the IRS by helping three high-value U.S. taxpayer-clients conceal more than $60 million in income and assets held in undeclared, offshore bank accounts and to evade U.S. income taxes. The case has been assigned to U.S. District Judge Gregory H. Woods. One of the charged defendants was recently arrested in Spain.
Ms. Strauss, Mr. Goldberg, and Mr. Lee also announced today the unsealing of the guilty plea of Wayne Franklyn Chinn, one of the U.S. taxpayer-clients who participated in the tax fraud scheme. The case against CHINN is assigned to U.S. District Judge Victor Marrero. Through a related civil forfeiture action, the Government forfeited approximately $2.2 million in CHINN’s untaxed funds and repatriated these funds from Singapore to the United States.
Manhattan U.S. Attorney Audrey Strauss said: “As alleged, the individual defendants and the Swiss firm Allied Finance conspired to defraud the IRS by assisting U.S. taxpayers in avoiding their tax obligations. They allegedly did this through an elaborate scheme that involved concealing customer assets at a Swiss private bank through nominee bank accounts in Hong Kong and elsewhere, with funds returning to the private bank in the name of a Singapore firm. One such U.S. customer, Wayne Chinn, pled guilty to his participation in the so-called ‘Singapore Solution,’ forfeited more than $2 million to the United States, and awaits sentencing for his admitted crime.”
Acting Deputy Assistant Attorney General Stuart M. Goldberg said: “Prosecuting offshore tax evasion remains one of the Tax Division’s highest priorities. Taxpayers contemplating hiding money abroad – and the foreign bankers, attorneys and finance professionals who design and execute strategies to assist their evasion – should know that the Tax Division and IRS have the investigative resources and expertise to unravel even the most elaborate schemes.”
IRS-CI Chief James C. Lee said: “The defendants allegedly helped their clients conceal more than $60 million in income and assets in an attempt to evade their U.S. tax responsibilities. Through the hard work of IRS-CI and the cooperation of our law enforcement partners, we were able to uncover the massive fraud allegedly being perpetrated by these individuals and hold them accountable for their actions. We are also proud to recognize the guilty plea of Mr. Wayne Chinn. His actions demonstrate complete disregard for the United States tax laws, but thanks to the commitment of our agents, we were able to unravel his scheme and bring him to justice.”
According to the allegations in the Indictment unsealed today[1]:
From in or about 2009 to in or about 2014, Ivo Bechtiger, Bernhard Lampert, Peter Rüegg, Roderic Sage, Rolf Schnellmann, Daniel Wälchli, and Allied Finance Trust AG of Zurich, Switzerland (“ALLIED FINANCE”), the defendants, defrauded the IRS by concealing income and assets of certain U.S. taxpayer-clients with undeclared bank accounts located at Privatbank IHAG Zurich AG (“IHAG”), a Swiss private bank in Zurich, Switzerland,[2] and elsewhere. In order to assist the U.S. taxpayer-clients, the defendants and others devised and implemented a scheme dubbed the “Singapore Solution” to fraudulently conceal the bank accounts of the U.S. taxpayer-clients, their assets, and their income from U.S. authorities. In furtherance of the fraudulent scheme, the defendants and others conspired to transfer more than $60 million from undeclared IHAG bank accounts of three U.S. taxpayer-clients through a series of nominee bank accounts in Hong Kong and other locations before returning the funds to newly opened accounts at IHAG in the name of a Singapore-based asset-management firm. The U.S. taxpayer-clients paid large fees to IHAG and others to help them conceal their funds and assets and evade taxes.
On or about August 16, 2021, defendant PETER RÜEGG, 61, of Switzerland was arrested in Spain. As alleged in the Indictment, RÜEGG was a member of IHAG’s management and a relationship manager for one of the U.S. taxpayer-clients who participated in the Singapore Solution scheme. RÜEGG is alleged to have helped the U.S. taxpayer-client conceal approximately $50 million in undeclared assets at IHAG through the Singapore Solution.
If convicted, the individual defendants face a maximum penalty of five years in prison, and ALLIED FINANCE faces monetary penalties.
The charges in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
* * *
Also unsealed today was the guilty plea of Wayne Franklyn Chinn, one of the U.S. taxpayer-clients who participated in the Singapore Solution scheme. According to statements made during CHINN’s plea proceeding, and related court filings:
From at least in or about 2001 through at least in or about January 2019, CHINN concealed approximately $5 million in undisclosed and untaxed income for tax years 2001 through 2018. During this period, CHINN held offshore accounts at IHAG in nominee names. Beginning in 2010, CHINN and others transferred funds from these offshore accounts at IHAG through nominee accounts outside of Switzerland, including in Hong Kong, before returning them to newly opened accounts at IHAG held in the name of a Singapore-based trust company purportedly on behalf of two foundations created by a co-conspirator. They did so to continue to conceal CHINN’s income and assets from U.S. authorities. CHINN subsequently transferred the funds out of Switzerland to undeclared accounts in Singapore. CHINN did not file any tax returns or disclose his offshore bank accounts during the years at issue.
CHINN, 79, of Ho Chi Minh City, Vietnam, and San Francisco, California, pled guilty on December 19, 2019, before U.S. Magistrate Judge Kevin Nathaniel Fox to one count of tax evasion for the calendar years 2001 through 2018, in violation of 26 U.S.C. § 7201, which carries a maximum penalty of five years in prison. CHINN also consented to the civil forfeiture of 83% of the funds held in five accounts at two Singapore banks, which resulted in the successful forfeiture and repatriation to the United States of approximately $2.2 million. The civil forfeiture proceeding is United States of America v. Certain Funds on Deposit in Various Accounts, 20 Civ. 3397 (LJL).
CHINN is scheduled to be sentenced by Judge Marrero on November 19, 2021.
The maximum potential sentences set forth above are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the Court.
Ms. Strauss and Mr. Goldberg praised the outstanding work of IRS-CI. Ms. Strauss thanked the Department of Justice’s Tax Division for their partnership on this case. Ms. Strauss, Mr. Goldberg, and Mr. Lee also thanked the Department of Justice’s Office of International Affairs, the Singapore Attorney-General’s Chambers, and the Commercial Affairs Department of the Singapore Police Force for their assistance in this matter.
This prosecution is being handled by the Complex Frauds and Cybercrime Unit of the United States Attorney’s Office for the Southern District of New York and the Department of Justice’s Tax Division. Assistant U.S. Attorney Olga I. Zverovich of the United States Attorney’s Office for the Southern District of New York and Senior Litigation Counsel Nanette Davis and Trial Attorney Sean Green of the Tax Division are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
[2] In November 2015, IHAG entered into a non-prosecution agreement with the Department of Justice, paid a penalty of approximately $7.4 million, and agreed to cooperate with U.S. authorities.
Two Plead Guilty to Health Care Fraud SchemeRead the Press Release
NEW ORLEANS - U.S. Attorney Duane A. Evans announced DONALD PETER AUZINE (“AUZINE”) and BONNIE JEAN LAWLESS DIAZ (“DIAZ”) have each pled guilty in federal court relating to their roles in a health care fraud conspiracy.
AUZINE, age 51, a resident of Baton Rouge, Louisiana, pled guilty on September 23, 2021 before U.S. District Judge Jay C. Zainey to Count One of an Indictment charging him with conspiracy to commit health care fraud, in violation of Title 18, United States Code, Sections 1347 and 1349.
DIAZ, age 46, a resident of Slidell, Louisiana, pled guilty on September 23, 2021 before U.S. District Judge Jay C. Zainey to Count One of a Superseding Bill of Information charging her with misprision (or knowing concealment) of the commission of a felony, in violation of Title 18, United States Code, Section 4.
According to the Indictment, in or around March 2014, continuing through in or around October 2016, AUZINE, conspired to knowingly and willfully execute a scheme and artifice to defraud TRICARE, a federal health care benefit program affecting commerce, and other health care benefit programs.
AUZINE was the marketing manager of Prime Pharmacy Solutions (“Prime”), which was located in Slidell, Louisiana. Prime Pharmacy was primarily a closed-door pharmacy whose primary business focus was the production of compounded medication, which, when created properly, were drugs combined, mixed, or altered by licensed pharmacists or other practitioners to meet the specialized needs of individual patients. The Pharmacist-in-Charge (“PIC”) was responsible for supervision, management, and compliance with all federal and state pharmacy laws and regulations pertaining to Prime Pharmacy’s pharmacy practice.
The owner, on behalf of Prime Pharmacy, contracted with various entities, including Pharmacy Benefit Managers (“PBMs”), obligating Prime Pharmacy to collect copayments from beneficiaries in order to be reimbursed by various health care benefit programs, including TRICARE. Additionally, the owner of Prime worked with AUZINE to market the compounded medications produced by Prime Pharmacy. AUZINE found other marketers outside of the state to find beneficiaries that were willing to receive medically unnecessary compounds and doctors willing to prescribe compounds without medical necessity.
AUZINE would pressure the pharmacists to fill prescriptions for beneficiaries where no doctor-patient relationship existed. He also aided in the creation of the prescription pads that had the highest value prescription
Beginning in or around March 2014, and continuing through in or around April 2016, Prime Pharmacy dispensed prescriptions for High-Yield Compounded Medications to beneficiaries of TRICARE and other health care benefit programs that were not medically necessary, induced by kickback payments, or where copayments were either waived or credited by Prime Pharmacy, and accordingly, submitted or caused to be submitted false and fraudulent claims for reimbursement to TRICARE, other health care benefit programs, and PBMs.
AUZINE received a percentage of Prime Pharmacy’s profits, including a percentage of the reimbursements paid by TRICARE and other health care benefit programs procured through fraud.
According to the Superseding Bill of Information, DIAZ had knowledge of the commission of the health care fraud. DIAZ concealed the fraud by knowingly submitting or caused to be submitted compounded medications for which there was no medical necessity and did not as soon as possible make known the same to some judge or other person in civil or military authority under the United States.
“Individuals involved in this scheme illegally billed TRICARE out of close to $15 million and I am pleased that the U.S. Attorney’s Office is requiring justice,” said Special Agent in Charge Cynthia Bruce, Defense Criminal Investigative Service, Southeast Field Office. “There are no victimless crimes and DCIS agents will continue to pursue unscrupulous greedy individuals who steal from our military health care system and all taxpayers."
The Court set sentencing of AUZINE and DIAZ for January 4, 2022.
AUZINE faces a maximum term of imprisonment of ten years, a $250,000 fine, three (3) years supervised release, a $100 special assessment fee, and restitution in the amount of $1.2 million.
DIAZ faces a maximum term of imprisonment of three years, a $250,000 fine, up to one (1) year of supervised release following any term of imprisonment, a $100 special assessment fee, and restitution in the amount of $180,000.
The U.S. Attorney’s Office praised the work of the Defense Criminal Investigative Service – Office of Inspector General, the Department of Homeland Security, the Department of Veterans Affairs – Office of Inspector General, and the United States Postal Service – Office of Inspector General.
The prosecution of the case is being handled by Assistant United States Attorney Kathryn McHugh.
Two Niagara County Men Sentenced for Forcing Undocumented Immigrants to Work in Their Mexican RestaurantRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Roberto Montes-Villalpando, 60, of Sanborn, NY, and Abraham Montes, 29, of North Tonawanda, NY, who were convicted of conspiring to harbor aliens for financial gain and causing serious bodily injury, were sentenced by U.S. District Judge Lawrence J. Vilardo. Roberto Montes-Villalpando was sentenced to serve 18 months home incarceration, while his son, Abraham Montes was sentenced to serve six months in prison and six months home detention.
Assistant U.S. Attorneys Meghan A. Tokash and Laura A. Higgins, who handled the case, with support from the Department of Justice’s Civil Rights Division’s Human Trafficking Prosecution Unit, stated that the defendants owned and operated El Cubilete Mexican Restaurant, in Niagara Falls, NY. Between December 2014 and late 2018, the restaurant was located at 9400 Niagara Falls Boulevard. In late-2018, the restaurant moved to 2050 Cayuga Extension in Niagara Falls. Defendant Montes-Villalpando managed the restaurant, supervised the staff, including wait and kitchen staff, made hiring and firing decisions, and determined payroll. Defendant Montes supervised the kitchen staff, which included Victims 1, 2, 3, and 4, who were each natives and citizens of Mexico. The victims—none of whom had legal status in the United States—were employed by the defendants as cooks, food preparers, and dishwashers. In addition, the victims sublet a Niagara Falls apartment rented by defendant Montes-Villalpando.
Between November 1, 2014, and February 18, 2018, the defendants recruited and hired undocumented foreign nationals who had entered the United States illegally to work for them. Montes-Villalpando and Montes enticed prospective laborers who lived and worked in Ohio, including Victim 1 and Victim 2, to work at El Cubilete by promising them better pay and fewer hours. During their employment, Victims 1, 2, 3, and 4 were paid less than required by the Fair Labor Standards Act and by New York State law, which required a minimum wage of $9/hour. According to analysis performed by the Department of Labor, Office of the Inspector General, the victims were underpaid in the following amounts respectively: Victim 1—$5,386.60; Victim 2—$8,513.44; Victim 3—$61,665.40; and Victim 4—$6,006.60.
Additionally, in about February 2018, defendant Montes punched Victim 3 in the nose and stated he would kill Victim 3. Montes then used a fire extinguisher to strike Victim 3 in the head causing him to fall to the ground. Victim 3 was transported to a hospital for medical treatment where he was diagnosed with a broken nose and a laceration on his head was closed with staples.
The sentencings are the result of an investigation by the Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Matthew Scarpino; the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard; the U.S. Department of Labor, Office of Inspector General, Office of Investigations – Labor Racketeering and Fraud, under the direction of Jonathan Mellone, Special Agent-in-Charge of the New York Region; and the Human Trafficking Task Force of Western District New York, which is co-led by the United States Attorney's Office, Erie County Sheriff's Office, and International Institute of Buffalo.
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Three Men Sentenced for Carjacking Lyft DriverRead the Press Release
DETROIT – Three Detroit men have been sentenced for their role in the carjacking of a Lyft driver, announced Acting United States Attorney Saima Mohsin.
Mohsin was joined in the announcement by Special Agent in Charge Timothy Waters, Federal Bureau of Investigation, Detroit Division.
Sentenced were Marquel Bazemore, 20, Jesse Evans, 21 and Joseph Shade-Hubbard, 21. United States District Judge Nancy Edmunds sentenced Bazemore to 96 months in federal prison, Evans to 114 months in federal prison and Shade-Hubbard to 120 months in federal prison.
According to court documents, on August 9, 2019, Bazemore, Evans, and Shade-Hubbard ordered a Lyft (ride-sharing service) through the Lyft mobile application. At approximately 4 a.m. on that day, the Lyft driver (victim) picked up the defendants in a Cadillac Escalade from the area of 8 Mile and 75 in the city of Detroit. The defendants entered the victim’s vehicle and were driven to the area of Mark Twain and Lyndon in Detroit. As the victim attempted to drop the defendants off, defendants Bazemore and Shade-Hubbard exited the Cadillac and began punching the victim. Evans was the front seat passenger, and he (Evans) pulled out a firearm, pointed the firearm at the victim and demanded that he give him everything he had. Bazemore and Shade-Hubbard began going through the victim's pockets and took his wallet, credit cards, and money.
This case was investigated by special agents of the FBI and is being prosecuted by Assistant US Attorney Jeanine Brunson.
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Texas man sentenced to prison for distributing thousands of images of child pornographyRead the Press Release
AUGUSTA, GA: A Texas man who distributed child pornography through an Internet messaging service has been sentenced to more than 10 years in federal prison.
James Lee Kinnison, 23, of Cypress, Texas, was sentenced to 121 months in prison after pleading guilty to Distribution of Child Pornography, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. U.S. District Court Chief Judge J. Randal Hall also ordered Kinnison to pay restitution of $15,000, to serve 15 years of supervised release, and to register as a sex offender after completion of his prison term. There is no parole in the federal system.
“James Kinnison appeared to be a stellar student with a bright future – but his exploitation of countless child victims is horrific,” said Acting U.S. Attorney Estes. “With our law enforcement partners, we will continue to hold accountable anyone who harms our most vulnerable citizens.”
As described in court documents and testimony, agents from the Georgia Bureau of Investigation (GBI) in October 2018 were conducting an investigation of a suspected child pornography distributer when they discovered Kinnison was sharing videos and images of child pornography to a private online messaging forum. At the time, Kinnison was a student and tutor at Union University in Jackson, Tenn. He later was interviewed and arrested by agents with Homeland Security Investigations after he admitted sharing images of child pornography to the online forum.
For purposes of sentencing, more than 52,000 images of child pornography were attributed to Kinnison.
“The GBI will continue to work tirelessly to protect innocent child victims of online exploitation,” said GBI Director Vic Reynolds. “We are grateful for the relationships we maintain with our federal partner agencies to bring these offenders to justice.”
“These perpetrators think they can share their filth and hide from justice by using the anonymity of the Internet, but they are wrong,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Sentences like this send a loud message to Kinnison and others like him that this behavior will not be tolerated, and they will be held accountable.”
Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 800-843-5678, or https://report.cybertip.org/.
The case was investigated by the GBI and Homeland Security Investigations, and prosecuted for the United States by Assistant U.S. Attorney and Project Safe Childhood Coordinator Tara M. Lyons.
Texas Man Sentenced to Prison for Filing False Tax Returns with Stolen IdentitiesRead the Press Release
Texas Man Sentenced to Prison for Filing False Tax Returns with Stolen Identities
Defendant Purchased Stolen Identities from the InternetA Texas man was sentenced to 70 months in prison today for conspiring to commit wire fraud, wire fraud, and aggravated identity theft, in connection with a scheme to file false tax returns using stolen identities.
Emmanuel Akoto, also known as “Kofi,” of Grand Prairie, Texas was convicted following a jury trial in October 2019. According to court documents and evidence at trial, from 2011 through 2014, Akoto purchased from third parties more than 560 stolen identities and used some of those identities to file false tax returns with the Internal Revenue Service (IRS). These returns listed fake income and tax withholdings and sought fraudulent refunds, which Akoto and his co-conspirators loaded onto pre-paid debit cards. At one point, Akoto tried to purchase via email identities from a United States Secret Service undercover agent. The wide-ranging conspiracy involved others in Texas, California, Georgia, and Ghana.
Jeffrey Quaye, who was a co-defendant in the case, was sentenced in March to 24 months in prison. Quaye pleaded guilty to conspiring to commit wire fraud and aggravated identity theft prior to the trial against Akoto.
In addition to being sentenced to prison, U.S. District Judge Steven J. McAuliffe ordered Akoto and Quaye to pay restitution and to serve terms of supervised release following their prison sentences. Akoto was ordered to pay $551,601 in restitution and Quaye was ordered to pay $99,796. Each defendant was sentenced to two years of supervised release.
Acting Deputy Assistant Attorney General Stuart M. Goldberg and Acting U.S. Attorney for the District of New Hampshire John J. Farley made the announcement.
IRS–Criminal Investigations and the Secret Service investigated the case.
Trial Attorney Sean Green of the Justice Department’s Tax Division, AUSA John Kennedy, and former Assistant U.S. Attorney Arnold Huftalen of the United States Attorney’s Office for the District of New Hampshire prosecuted the case.
Texas Man Sentenced to Prison for Filing False Tax Returns with Stolen IdentitiesRead the Press Release
A Texas man was sentenced to 70 months in prison today for conspiring to commit wire fraud, wire fraud and aggravated identity theft, in connection with a scheme to file false tax returns using stolen identities.
Emmanuel Akoto, also known as “Kofi,” of Grand Prairie, was convicted following a jury trial in October 2019. According to court documents and evidence at trial, from 2011 through 2014, Akoto purchased from third parties more than 560 stolen identities and used some of those identities to file false tax returns with the IRS. These returns listed fake income and tax withholdings and sought fraudulent refunds, which Akoto and his co-conspirators loaded onto pre-paid debit cards. At one point, Akoto tried to purchase, via email, identities from a U.S. Secret Service undercover agent. The wide-ranging conspiracy involved others in Texas, California, Georgia and Ghana.
Jeffrey Quaye, who was a co-defendant in the case, was sentenced in March to 24 months in prison. Quaye pleaded guilty to conspiring to commit wire fraud and aggravated identity theft prior to the trial against Akoto.
In addition to being sentenced to prison, U.S. District Judge Steven J. McAuliffe ordered Akoto and Quaye to pay restitution and to serve terms of supervised release following their prison sentences. Akoto was ordered to pay $551,601 in restitution and Quaye was ordered to pay $99,796. Each defendant was sentenced to two years of supervised release.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney John J. Farley for the District of New Hampshire made the announcement.
IRS–Criminal Investigations and the Secret Service investigated the case.
Trial Attorney Sean Green of the Tax Division, Assistant U.S. Attorney John Kennedy, and former Assistant U.S. Attorney Arnold Huftalen of the U.S. Attorney’s Office for the District of New Hampshire prosecuted the case.
Tacoma woman pleads guilty to arson for burning police cars in downtown SeattleRead the Press Release
Seattle – A 26-year-old Tacoma, Washington, woman pleaded guilty today to arson for burning five Seattle P0lice vehicles parked in the area of Sixth and Pine in downtown Seattle on Saturday, May 30, 2020, announced Acting U.S. Attorney Tessa M. Gorman. Margaret Aislinn Channon was arrested June 11, 2020, following an investigation by the FBI, ATF, and Seattle Police Department. She is scheduled for sentencing by U.S. District Judge John C. Coughenour on January 18, 2022.
According to the plea agreement, Channon appears in videos from the protest in downtown Seattle wearing distinctive clothing and showing tattoos on her hands and arms. Channon is captured on video using fire and aerosol cans to light five Seattle Police Department vehicles on fire. She is also shown entering various stores and removing items of clothing. She admits smashing the window at the Verizon Store, and entering a sandwich shop and destroying the electronic cash register. Investigators identified Channon based on her clothing, tattoos, and information from her various social media accounts.
Law enforcement executed a search warrant at Channon’s Tacoma residence and seized clothing and accessories that appear in some of the videos from the arsons.
Under the terms of the plea agreement, Channon is responsible for restitution. The amount will be determined at sentencing.
Arson is punishable by a mandatory minimum 5 years in prison and up to 20 years in prison. Both sides have agreed to recommend 5 years in prison. The ultimate sentence is up to Judge Coughenour, who will determine the appropriate sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case is being investigated by the FBI, Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), and the Seattle Police Department.
The case is being prosecuted by Assistant United States Attorney Todd Greenberg.
St. Louis man pleads guilty to drug traffickingRead the Press Release
ST. LOUIS – United States District Court Judge Stephen R. Clark accepted a plea of guilty from Deaunta Miller on today’s date, for the crime of knowingly and intentionally possessing fentanyl with the intent to distribute. Judge Clark set sentencing for January 12, 2022. At sentencing, Miller is subject to imprisonment of not more than 20 years, a fine of not more than $1,000,000, or both such imprisonment and fine.
According to the plea agreement, Miller knowingly and intentionally possessed with the intent to distribute fentanyl, a controlled substance, on or about December 2, 2020, within the Eastern District of Missouri. Agents with the Drug Enforcement Administration began an investigation into Deaunta Miller’s narcotics trafficking in June of 2020. During their investigation, agents conducted controlled purchases of narcotics from Miller and later obtained federal search warrants, which authorized them to search two residences in the St. Louis area.
Investigators executed the warrants on December 2, 2020. During the execution of the search warrants a large amount of fentanyl was seized along with cocaine and heroin. Further investigation revealed over $60,000.00 in cash that was seized as illegal drug proceeds and a hydraulic press used in conjunction with the distribution of illegal narcotics.
The case was investigated by the Drug Enforcement Administration.
Southeastern Connecticut Drug Trafficker, Co-Conspirator, Found GuiltyRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, and New London Police Chief Brian Wright, today announced that a federal jury in Bridgeport has found ANTHONY WHYTE, also known as “Jak Mac,” 47, of New London, and AMY SARCIA, 52, of Stonington, guilty of narcotics trafficking and money laundering offenses, and Whyte guilty of a firearm offense.
The trial before U.S. District Judge Victor A. Bolden began on September 10 and the jury returned the guilty verdicts this afternoon.
This matter stems from an investigation led by the Drug Enforcement Administration, Connecticut Statewide Narcotics Taskforce East, Connecticut Department of Correction and the New London, Waterford, City of Groton and Stonington Police Departments, into the distribution of narcotics and illegal possession of firearms in southeastern Connecticut. The investigation included court-authorized wiretaps and controlled purchases and seizures of heroin, cocaine and firearms.
According to the evidence introduced during the trial, Whyte obtained heroin, fentanyl and cocaine from various sources in Connecticut, New York and elsewhere, and distributed the narcotics to other members of the conspiracy. Whyte’s co-conspirators then sold the drugs to customers and other street-level drug dealers. Sarcia, who both distributed and used cocaine, accepted narcotics proceeds from Whyte and provided Whyte with weekly paychecks from her business, Two Wives Pizza, and a federal W-2 tax form, in an attempt to disguise the narcotics proceeds as employment wages. Sarcia also accepted cash from Whyte for allowing him to use three apartments in a building she managed to store and dispense narcotics.
On February 21, 2019, Whyte, Sarcia and several other co-conspirators were arrested. On that date, a search of Whyte’s New London apartment revealed more than 1.5 kilograms of cocaine; approximately 185 grams of heroin; approximately 100 grams of fentanyl and fentanyl pills; 10 firearms, several of which were stolen; and approximately $25,000 in cash. Investigators seized additional narcotics, another firearm, and nearly $200,000 in cash from other members of the conspiracy.
The jury found Whyte and Sarcia guilty of one count of conspiracy to distribute, and to possess with intent to distribute, various narcotics, and one count of conspiracy to launder monetary instruments (“money laundering”). Whyte was also found guilty of three counts of possession with intent to distribute, and distribution of, various narcotics, and one count possession of a firearm in furtherance of a drug trafficking crime.
At sentencing, which is not scheduled, Whyte faces a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of life, and Sarcia faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 60 years.
Twenty-Three others charged as a result of this investigation previously pleaded guilty.
This investigation has been conducted by the Drug Enforcement Administration, Homeland Security Investigations, U.S. Marshals Service, Connecticut Statewide Narcotics Taskforce East, Connecticut Department of Correction and the New London, Waterford, City of Groton, Stonington, Norwich, Old Saybrook and UConn Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Natasha M. Freismuth and Angel M. Krull through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Soledad Norteño Gang Member Sentenced to Eight Years in Prison for Participation in Federal Rico ConspiracyRead the Press Release
SAN JOSE – Michael Cazares, a/k/a “Lil Rhino,” was sentenced today in federal court to eight years in prison for his racketeering conspiracy convictions, announced Acting United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair.
Cazares, 30, of Soledad, was a Norteño gang member who participated in a conspiracy to commit violent attacks on other inmates in the Monterey County Jail. He pleaded guilty on June 10, 2021, to engaging in a RICO Conspiracy, Conspiracy to Commit Murder in Aid of Racketeering, and Conspiracy to Commit Assault with a Dangerous Weapon in Aid of Racketeering.
In his plea agreement, Cazares admitted to being a member of the Nuestra Familia/Salinas Norteños enterprise. This enterprise consists of members and associates of the Nuestra Familia prison gang as well as Norteño street gangs in Salinas and the surrounding areas. Norteño gang members pledge their allegiance and loyalty to the prison gang Nuestra Familia and are instructed on its rules, rituals, and obligations. Members agree to commit crimes to carry out the enterprise’s racketeering activity, including murder, narcotics trafficking, and other acts of violence.
Gang rules and discipline are enforced by threatening and attacking those individuals who violate the rules or pose a threat to the organization. Inside prisons and local jails, members and associates of Nuestra Familia and the Norteños work together to maintain the structure and rules of their enterprise.
In his plea agreement, Cazares admitted that while in jail he conspired with enterprise members to enforce the most important rules by conducting “removals” of inmates. His plea agreement described a “removal” as a pre-planned vicious attack designed to inflict maximum physical injury on a fellow inmate gang member who committed a serious infraction of the gang’s rules and to remove that gang member from both the gang’s custodial housing unit and the gang itself. A removal, as described in the plea agreement, is carried out by one or more “hitters” who stab the victim with a jail-made weapon and are followed by at least two “bombers” who beat the victim. The purpose of the subsequent beating by bombers, who carry no weapons, is to inflict injury while providing time for the hitters to wash blood off of themselves and to get rid of the weapons.
Drug trafficking inside jail is a significant source of revenue for Nuestra Familia and Norteños. Cazares further admitted that he also conspired with other gang members in the enterprise to support the distribution of narcotics within Monterey County Jail.
Cazares and 14 other Norteño gang members were indicted by a federal grand jury on September 27, 2018. They were charged with one count of a RICO racketeering conspiracy, in violation of 18 U.S.C. § 1962(d); one count of conspiracy to commit attempted murder in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(5); and one count of conspiracy to commit assault with a dangerous weapon in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(6). In addition, some of the defendants, but not Cazares, were charged with attempted murder in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(5) and assault with a dangerous weapon, in violation of 18 U.S.C. § 1959(a)(3).
To date, 13 of the charged defendants have pleaded guilty and 12 have been sentenced, while two defendants remain scheduled for a trial set to commence on October 25, 2021. Each of the 13 defendants listed below pleaded guilty to a RICO conspiracy, and their status is as follows:
Defendant
Date of Sentencing
Sentence
JOHNNY MAGDALENO, a/k/a “Soldier Boy”
November 10, 2020
30 years in prison
RODNEY LUIS ROMERO,
a/k/a “Speedy”
November 17, 2020
18 years in prison
MICHAEL JAMES RICE,
a/k/a “Redwood”
March 3, 2020
13 years in prison
RAMON MONTOYA,
a/k/a “Ray Ray”
October 27, 2020
10 years in prison
JUAN ALVAREZ,
a/k/a “Chucky”
August 17, 2021
10 years in prison
ERIK LOPEZ,
a/k/a “Bimbo”
August 18, 2020
10 years in prison
ALEJO ALEX ALEGRE, IV,
a/k/a “Chino”
October 13, 2020
10 years in prison
CARLOS CERVANTES, a/k/a “Lil Huero”
September 22, 2020
10 years in prison
MICHAEL CAZARES, a/k/a “Lil Rhino”
September 28, 2021
8 years in prison
ALBERTO MORENO,
a/k/a “Doughboy”
January 7, 2020
7 years in prison
STEVEN ANTHONY DORADO,
a/k/a “Castro”
July 14, 2020
7 years in prison
JEFFREY LOPEZ,
a/k/a “T-Bone”
May 11, 2020
7 years in prison
ALBERTO CERVANTES, a/k/a “Littles”
November 2, 2021
TBD – pending sentencing
The eight year prison sentence for Cazares was handed down today by the Honorable Beth Labson Freeman, United States District Judge, following Cazares’s guilty pleas on three counts: one count of engaging in a RICO racketeering conspiracy, in violation of 18 U.S.C. § 1962(d); one count of conspiracy to commit attempted murder in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(5); and one count of conspiracy to commit assault with a dangerous weapon in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(6). Judge Freeman also sentenced the defendant to a five year period of supervised release following release from prison.
The United States Attorney’s Office’s Organized Crime Strike Force is prosecuting the case. The prosecution is the result of an investigation by the FBI with assistance from the Salinas Police Department, the Monterey County Sheriff’s Office, the California Highway Patrol, and the California Department of Corrections and Rehabilitation.
This investigation and prosecution are part of the Organized Crime Drug Enforcement Task Force (“OCDETF”), which identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Shreveport Man Sentenced on Firearms ChargeRead the Press Release
SHREVEPORT, La. – Johnny Dewayne Young, Jr., 60, of Shreveport, Louisiana, was sentenced today by United States District Judge Donald E. Walter to 48 months in prison, followed by 3 years of supervised release, for being a convicted felon in possession of a firearm, Acting United States Attorney Alexander C. Van Hook announced.
According to information presented to the court at the guilty plea hearing, deputies with the Caddo Parish Sheriff’s Office stopped the vehicle Young was driving on June 8, 2020 for a traffic violation. He was the sole occupant of the vehicle and admitted to deputies that he did not have a driver’s license or a state identification card, nor had he ever possessed one. Young further admitted that a loaded firearm was in the vehicle and after a brief search, deputies found and seized the firearm.
Young has a lengthy criminal history, with the most recent felony conviction being for aggravated flight from an officer on January 10, 2018. In addition to that charge, Young has previous felony convictions for possession of a firearm by a convicted felon (2005), possession of a controlled substance (2003 and 2005), aggravated battery (1997), possession of a controlled substance with intent to distribute (1997), and simple burglary (1989). As an individual having been convicted of a felony offense, Young knew he was prohibited from possessing a firearm or ammunition.
The ATF, Caddo Parish Sheriff’s Office and Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Cytheria D. Jernigan prosecuted the case.
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Sedalia Man Pleads Guilty to Murder for HireRead the Press Release
JEFFERSON CITY, Mo. – A Sedalia, Missouri, man pleaded guilty in federal court today to attempting to hire an undercover law enforcement agent to murder the victim in a pending statutory sodomy case.
Jon Mark Wilson, 57, pleaded guilty before U.S. Magistrate Judge Willie J. Epps Jr. to one count of the use of interstate facilities (the use of a cell phone and crossing state lines) in the commission of murder for hire.
By pleading guilty today, Wilson admitted that he paid $2,000 to an undercover agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives to murder his alleged victim in a separate state case. Wilson has been charged in Pettis County, Mo., with two counts of felony first degree statutory sodomy in a case that is still pending.
Wilson solicited another person in January 2019 to arrange the murder for him. That person contacted law enforcement authorities and helped arrange a meeting with Wilson and the undercover agent. Wilson agreed to hire the undercover agent to murder the intended victim. On Jan. 22, 2019, Wilson drove from Sedalia to Kansas City, Kansas, to meet with the undercover agent. Wilson paid the undercover agent $2,000, made arrangements to pay another $5,000 after the murder, and gave him a photo of the intended victim. Wilson also went into the Cabela’s store and purchased shotgun shells for the undercover agent to use in the murder. When Wilson left the area, he was stopped and arrested by a Missouri State Highway Patrol trooper.
Under federal statutes, Wilson is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Missouri State Highway Patrol, and the Sedalia, Mo., Police Department.
Saucier Man Pleads Guilty to Illegal Possession of a FirearmRead the Press Release
Gulfport, Miss. – A Saucier man pled guilty to being a felon in possession of a firearm, announced Acting U. S. Attorney Darren J. LaMarca and Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to court documents, Christopher Michael Gelston, 40, knowingly possessed a Ruger 9mm pistol after having been previously convicted of a felony.
Gelston is scheduled to be sentenced on January 18, 2020, at 10:00 a.m., and faces a maximum penalty of 10 years in prison and a $250,000 fine. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Bureau of Alcohol, Tobacco, Firearms and Explosives is investigating the case.
Assistant U.S. Attorney Andrea Jones is prosecuting the case.
Statement of Acting US Attorney Saima Mohsin on Today’s Ruling in the Case of United States of America V. Nargarwala, Et. Al.Read the Press Release
“We are very disappointed in the Court’s decision today dismissing the indictment. We take our duty to protect children very seriously. Congress sought to protect young girls from the cruelty of the practice of female genital mutilation when it enacted 18 U.S.C. § 116 in 1996. Congress reaffirmed the importance of this law when it re-enacted the statue in 2020 after the Court’s dismissal of the charge in this case as unconstitutional. Child victims are vulnerable and they deserve our best efforts to hold accountable those who harm them. Our prosecutorial team is comprised of some of our best and most experienced prosecutors. I stand behind them and commend them for their dedication, integrity, and commitment to protect innocent child victims of female genital mutilation.”
Riverton Man Found Guilty on Six Counts of Sexual Abuse on the Wind River Indian ReservationRead the Press Release
Acting United States Attorney Bob Murray announced today that DALCO GABRIEL WHITEMAN, 53, of Riverton, Wyoming was found guilty on two counts of aggravated sexual abuse and four counts of abusive sexual contact following a five-day federal jury trial in front of District Court Chief Judge Scott W. Skavdahl in Casper, Wyoming.
According to evidence provided at trial, the jury found that Whiteman was responsible for molesting multiple victims on the Wind River Indian Reservation spanning the course of 25 years. Six victims, several of them unknown to each other, testified that they had been sexually assaulted by Whiteman, some of them on numerous occasions.
Sentencing on each count will vary based on when the assault occurred. The most serious convictions for aggravated sexual abuse are punishable by not less than 30 years but not more than life imprisonment. The sentencing hearing has not yet been scheduled.
"This verdict brings a measure of justice to the victims of Dalco Whiteman," said FBI Denver Division Special Agent in Charge Michael Schneider. "The FBI in coordination with the Bureau of Indian Affairs, which was the primary investigative agency in this case, will continue to prioritize protecting child victims of sexual assault by holding accountable all those who perpetrate such crimes."
The investigation was conducted by the Bureau of Indian Affairs and the Federal Bureau of Investigation. Assistant United States Attorney Kerry J. Jacobson prosecuted the case.
Passaic County Man Admits Role in Illegal Money Transmitting SchemeRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey man today admitted his role in an illegal money transmitting business, Acting U.S. Attorney Rachael Honig announced.
Willy Cruz-Bonilla, 24, of Paterson, New Jersey, pleaded guilty by videoconference before U.S. District Judge Katharine S. Hayden to a criminal information charging him with aiding and abetting an illegal money transmitting business.
According to documents filed in this case and statements made in court:
From August 2016 through August 2017, Cruz-Bonilla accepted over $2.5 million in cash and purchased over 90 cashier’s checks at local bank branches in New Jersey and elsewhere. The investigation revealed that the cash was the proceeds of illegal drug distribution. The check purchases were part of a large-scale illegal money transmitting and money laundering scheme designed to hide the illegal source of the cash and transfer it from New Jersey to the Dominican Republic and Colombia, all while attempting to avoid scrutiny by law enforcement and U.S. banks.
The charge of aiding and abetting an illegal money transmitting business carries a maximum penalty of five years in prison and a fine of $250,000 or twice the amount involved in the offense, whichever is greater. Sentencing is scheduled for Feb. 1, 2022.
Acting U.S. Attorney Honig credited special agents and task force officers of the U.S. Drug Enforcement Administration, New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson; special agents and task force officers of IRS - Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; the Morristown, New Jersey, police department, under the direction of Acting Police Chief Darnell Richardson; and the Direccion Nacional de Control de Drogas (the Dominican Republic National Drug Directorate, DNCD) with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the Criminal Division in Newark.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Ocoee Man Sentenced to More Than Six Years in Federal Prison for Identity Theft and Wire Fraud Scheme Targeting Elected Officials in FloridaRead the Press Release
Orlando, FL – U.S. District Judge Gregory A. Presnell has sentenced Michael T. Watters (51, Ocoee) to six years and five months in federal prison for aggravated identity theft and wire fraud. Watters had pleaded guilty on July 12, 2021.
According to court documents, Watters created approximately 35 counterfeit driver licenses using the stolen identities of current or former local, state, and federal legislators. Between December 9, 2018, and May 1, 2019, Watters used those counterfeit driver licenses to successfully present approximately 265 counterfeit checks as payment at various stores in the Orlando area. When Watters presented a victim’s driver license number, he caused interstate wire communications to be transmitted from the store to a third-party payment provider to ascertain whether the driver license number previously had been associated with fraudulent payments. Watters caused total losses to the affected businesses in the amount of $53,156.43.
This case was investigated by the United States Secret Service, the Florida Department of Law Enforcement, and the Winter Garden Police Department. It was prosecuted by Assistant United States Attorney Chauncey A. Bratt.
North Carolina man sentenced to federal prison for distributing opioids through the Dark WebRead the Press Release
SAVANNAH, GA: A North Carolina man who ordered and illegally sold highly addictive opioids through the Dark Web has been sentenced to federal prison.
Wesley McKeehan, 34, of Salisbury, N.C., was sentenced to 26 months in prison after pleading guilty to Distribution of Oxycodone, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge R. Stan Baker also ordered McKeehan to serve three years of supervised release upon completion of his prison sentence. There is no parole in the federal system.
“Use of the Dark Web for buying and selling illegal drugs is a growing menace that worsens the deadly opioid crisis in our communities,” said Acting U.S. Attorney Estes. “Our law enforcement partners perform outstanding work in identifying and intercepting this illegal commerce, and holding digital drug dealers like McKeehan accountable.”
As described in court documents and testimony, agents with the Savannah Division of the Drug Enforcement Administration were alerted about a suspected contraband package being delivered to the business address of Eric Schmidt, 50, of Savannah. Agents searched the business after the package was delivered, and McKeehan later was charged after Schmidt admitted purchasing the opioid Oxycodone from McKeehan and allowing McKeehan to use his mailing address for importing the drugs from an overseas distributor via the Dark Web.
Schmidt was sentenced to probation after pleading guilty to an Information charging him with Acquiring, Possession of Controlled Substances by Misrepresentation, Fraud, Forgery, Deception, or Subterfuge.
“Mr. McKeehan thought he could hide his illegal operations through the use of the Dark Web,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Field Division. “But criminals who operate on the Dark Web should know that the DEA and its law enforcement partners will not rest until all of the distributors of this poison are caught and prosecuted.”
“The opioid crisis has devastated countless communities across the country, so when we are able to stop the flow of illegal opioids, it greatly benefits our communities and undoubtedly saves lives,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI will continue to use its resources and partnerships to identify and arrest those involved in this destructive crime, to protect our communities.”
“Illegal trading of opioids poses a significant health threat,” said Henry DeBlock, Area Port Director Savannah. “Through hard work, dedication and tireless efforts of Customs and Border Protection officers, we’ll continue to target shipping of illegal narcotics at our ports of entry before they can harm our communities.”
The case was investigated by the Drug Enforcement Administration Savannah Resident Office, Homeland Security Investigations, U.S. Customs and Border Protection, the Georgia Bureau of Investigation, the Savannah-Chatham Counter Narcotics Team, and the Glynn County Sheriff’s Office, and prosecuted for the United States by Assistant U.S. Attorney Matthew A. Josephson.
Navajo man sentenced to one and a half years in prison for involuntary manslaughter in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Blaine Morgan, 36, of Crownpoint, New Mexico, and an enrolled member of the Navajo Nation, was sentenced in federal court on Sept. 24 to one year and six months in prison for involuntary manslaughter in Indian Country.
Morgan pleaded guilty on May 25. In his plea agreement, Morgan admitted that on March 29, 2020, he was at a gathering where he and John Doe consumed alcohol. A dispute between the two escalated into a physical fight, during which Morgan stabbed John Doe. John Doe later died from the injuries inflicted by Morgan. The incident took place in Church Rock, New Mexico, on Navajo Nation.
Upon his release from prison, Morgan will be subject to three years of supervised release.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Nation Police Department. The Office of the United States Attorney for the District of New Mexico prosecuted the case.
Minneapolis Man Sentenced to 110 Months in Prison for Possessing a Stolen FirearmRead the Press Release
ST. PAUL, Minn. – A Minneapolis man was sentenced yesterday to 110 months in prison followed by three years of supervised release for possessing a stolen firearm.
According to court documents, on August 19, 2019, law enforcement received a tip that Antonio Tedell Hammonds-Ford, 29, was walking around a parking lot wearing a replica bullet proof vest and carrying a firearm. After reviewing surveillance footage, law enforcement confirmed the defendant’s identity and responded to the parking lot. When officers approached, Hammonds-Ford pulled a handgun from his waistband and dropped it one the ground and attempted to walk away. The firearm was a loaded Norinco 9mm semiautomatic pistol and Hammonds-Ford admitted that he knew the gun was stolen.
Acting U.S. Attorney W. Anders Folk for the District of Minnesota made the announcement after U.S. District Judge Wilhelmina M. Wright sentenced the defendant.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Minneapolis Police Department.
This case was prosecuted by Assistant U.S. Attorney Harry M. Jacobs.
Medical Device Company Pleads Guilty to Dealing in Adulterated Devices, Forfeits over $800,000 in Non-FDA Approved DevicesRead the Press Release
Miami, Florida – Affordable Healthcare Solutions, LLC, d/b/a Affordable Healthcare Solutions 1, LLC has pled guilty and was sentenced in South Florida federal court to Receiving Adulterated Devices in Interstate Commerce and Delivery for Pay with Intent to Defraud or Mislead, in violation of 21 USC 331(c) and 333(a)(2).
According to the facts admitted at the change of plea, on May 11, 2016, Special Agents with the United States Food and Drug Administration, Office of Criminal Investigations, executed a search warrant at Affordable Healthcare Solutions 1, LLC (Affordable Healthcare), a business managed by R.A. During the search, agents located and seized unapproved, foreign-market Supartz Euflexxa, Synvisc, Synvisc-One, and Orthovisc, which are prescription hyaluronic acid (HA) medical devices intended for the treatment of pain in osteoarthritis of the knee that must be injected by a doctor or other qualified health care professional. Because these prescription medical devices lacked FDA approval for distribution and use in the United States, they were adulterated.
Under 21 U.S.C. § 331(c), it is unlawful to receive in interstate commerce an adulterated device and to deliver or proffer delivery of such device to others for pay or otherwise. Reviews of the labeling conducted by FDA’s Center for Devices and Radiological Health on the injectable HA devices seized from Affordable Care confirmed various differences between the outer box and carton labels, patient information brochures, and instructions for use between the FDA-approved labeling for Supartz, Orthovisc, Synvisc, Synvisc-One and Euflexxa versus the labeling included with the unapproved versions being distributed by Affordable Healthcare. The value of the devices seized were in excess of $800,000.
As a result of the plea agreement, Affordable Healthcare Solutions, LLC pled guilty to a felony, was fined and ordered to forfeit the $837,000 worth of medical devices seized during the search warrant executed by Special Agents with the FDA.
Juan Antonio Gonzalez, Acting United States Attorney for the Southern District of Florida, and Special Agent in Charge, Justin C. Fielder, FDA Office of Criminal Investigations, Miami Field Office, announced the felony guilty plea and sentence.
“Medical device suppliers whose greed leads them to disregard FDA protocols and approval processes put the public in danger” said Juan Antonio Gonzalez, Acting United States Attorney for the Southern District of Florida. “These are serious crimes and, in our district, companies that put profit over patient safety will be held accountable.”
“FDA regulates the manufacturing and distribution of medical devices to help ensure the safety of American patients,” said Special Agent in Charge Fielder. “Today’s announcement should serve as a reminder of the FDA’s continued focus on companies that put profits ahead of the U.S. public health.”
FDA-OCI Miami investigated the case. Assistant U.S. Attorney Laurence Bardfeld is prosecuting it. Assistant U.S. Attorney Richard Brown is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
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McKees Rocks Man Charged with Attempted Coercion of a Minor for SexRead the Press Release
PITTSBURGH- A resident of McKees Rocks, PA, now in custody at Allegheny County Jail, has been indicted by a federal grand jury in Pittsburgh, on a charge of attempted coercion and enticement of a minor to engage in illegal sexual activity, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Ryan Peters, 31, formerly of McKees Rocks, PA, as the sole defendant.
According to the Indictment, from on or about August 26, 2021, until on or about September 13, 2021the indictment/information presented to the court, Peters attempted to coerce and entice a minor to engage in illegal sexual activity.
The law provides for a term of imprisonment of not less than ten years and not more than life in prison, a fine not greater than $250,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense(s) and the prior criminal history, if any, of the defendant. Indicate relevant bond/detention information if known
Assistant United States Attorney Benjamin J. Risacher is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation 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.
McKees Rocks Drug Felon Admits Illegal Possession of a Stolen HandgunRead the Press Release
PITTSBURGH, PA - A former resident of McKees Rocks pleaded guilty in federal court to a charge of violating federal firearm laws, Acting United States Attorney Stephen R. Kaufman announced today.
Gamale Vaughn, age 45, pleaded guilty to one count before United States District Judge William S. Stickman.
In connection with the guilty plea, the court was advised that in June 2019, officers with the McKees Rocks Police Department executed a search warrant on the defendant’s residence. During the search, law enforcement recovered a Springfield Armory .45 caliber handgun, which was previously reported stolen. Following a waiver of his rights, the defendant admitted that the firearm was his. The Court was further advised that the defendant was previously convicted of a felony drug trafficking offense in Allegheny County. As a convicted felon, the defendant is prohibited under federal law from possessing firearms.
Judge Stickman scheduled sentencing for February 23, 2022 at 9:30 a.m. The law provides for a total sentence of ten years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the Court continued the defendant on bond.
Assistant United States Attorney Brendan J. McKenna is prosecuting this case on behalf of the government.
The McKees Rocks Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to the prosecution of Vaughn.
Massachusetts Man Sentenced to over 13 Years for Conspiring to Distribute FentanylRead the Press Release
PORTLAND, Maine: A Lawrence, Massachusetts man was sentenced yesterday in U.S. District Court in Portland for conspiring to distribute and possess with intent to distribute 400 grams or more of fentanyl, Acting U.S. Attorney Donald E. Clark announced.
U.S. District Judge D. Brock Hornby sentenced Julio Mejia, 40, to 162 months in prison, five years of supervised release and a $2,000 fine. Mejia pleaded guilty on November 21, 2019.
According to court records, between April 2016 and March 2018, Mejia conspired with others from Lawrence, Massachusetts; New Hampshire; and Maine to distribute fentanyl and cocaine. Mejia acquired the drugs in Lawrence, and they were then sold to others for distribution throughout New England.
The U.S. Drug Enforcement Administration’s Portsmouth Tactical Diversion Squad, the Sanford Police Department, the Maine State Police, the New Hampshire State Police, the Hampton (New Hampshire) Police Department and the North Andover (Massachusetts) Police Department investigated the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Massachusetts Man Sentenced for Unlawfully Possessing FirearmsRead the Press Release
PORTLAND, Maine: A Woburn, Massachusetts man was sentenced today in federal court for being an unlawful user of controlled substances in possession of firearms, Acting U.S. Attorney Donald E. Clark announced.
U.S. District Judge George Z. Singal sentenced Sauma Brata Deb, 27, to 12 months and one day in prison and two years of supervised release. Deb pleaded guilty on August 5, 2021.
According to court records, between March 6, 2020, and November 16, 2020, Deb was arrested on five separate occasions in either New Hampshire or Massachusetts. During each of these arrests, drugs or drug-use paraphernalia (or both) were recovered from him. On January 29, 2021, he attempted to sell a firearm to the Kittery Trading Post. When he was arrested, two firearms were recovered from him and additional items of drug-use paraphernalia were recovered from his car. It is against federal law for unlawful users of drugs to possess firearms.
The Maine and New Hampshire offices of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Kittery Police Department investigated the case as part of the Department of Justice’s Project Safe Neighborhoods (PSN) initiative.
PSN is a nationwide initiative that brings together federal, state, local and tribal law enforcement officials, prosecutors, community leaders and other stakeholders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. PSN is coordinated by the U.S. Attorneys’ Offices in the 94 federal judicial districts throughout the 50 states and U.S. territories. PSN is customized to account for local violent crime problems and resources. Across all districts, PSN follows four key design elements of successful violent crime reduction initiatives: community engagement, prevention and intervention, focused and strategic enforcement, and accountability.
Manchester Man Found Guilty of Sex Trafficking OffensesRead the Press Release
DES MOINES, IA – On September 24, 2021, a federal jury convicted Darrius Decnan Redd, age 33, of Manchester, of sex trafficking an adult victim by force, fraud, and coercion; facilitation of prostitution; and distribution of a controlled substance to a person under the age of 21. Redd faces a sentence of at least fifteen years in prison and up to life. Redd was ordered to remain detained pending his sentencing in federal court.
According to court documents and evidence presented at the four and a half-day trial, Redd used deceptive and coercive tactics as well as physical force to compel a victim to engage in sex acts in exchange for money. Redd kept all of the proceeds from the victim’s sex acts. Redd trafficked the victim in Iowa City, Cedar Rapids, Waterloo, Clive, and surrounding areas in March 2020. Redd also supplied the victim with a controlled substance and posted advertisements for paid sex acts with the victim and other women on an escort website. Testimony and evidence revealed Redd had distributed controlled substances to other women and had attempted to recruit and/or compel other women to engage in commercial sex acts for his monetary gain.
Sentencing is scheduled for January 28, 2022, in Des Moines, before United States District Court Judge Rebecca Goodgame Ebinger.
Acting U.S. Attorney Richard D. Westphal of the Southern District of Iowa made the announcement.
This investigation was conducted by the Iowa Division of Criminal Investigation, Clive Police Department, University of Iowa Police Department, Iowa City Police Department, Manchester Police Department, Iowa Department of Corrections, and the Iowa Division of Narcotics Enforcement. The Des Moines Police Department and the Federal Bureau of Investigation participated in trial presentation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Man Sentenced for Role in International Human Smuggling ConspiracyRead the Press Release
A Bangladeshi national was sentenced today to 46 months in prison for his role in a scheme to smuggle undocumented individuals from Mexico into the United States.
According to court documents, between March 2017 and June 2019, Mohamad Milon Hossain, 41, a Bangladeshi national formerly residing in Tapachula, Mexico, conspired with and assisted human smugglers operating out of Bangladesh, South and Central America, and Mexico to bring numerous undocumented individuals to the U.S. border in exchange for payment. Hossain operated out of Tapachula where he maintained a hotel that housed the individuals on their way to the United States. Hossain provided plane tickets and other assistance for the individuals to travel from Tapachula to Monterrey, Mexico, where co-conspirator Moktar Hossain assisted their illegal crossing into the United States.
“This human smuggling conspiracy operated on a global scale and endangered the lives of Bangladeshi migrants,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The Justice Department will continue working with our law enforcement partners here and abroad to bring human smugglers like Hossain to justice and to disrupt these criminal networks that unlawfully bring migrants from across the world into the United States.”
“This criminal placed profit before life,” said Acting Assistant U.S. Attorney Jennifer B. Lowery of the Southern District of Texas (SDTX). “Human smugglers like Hossain often put migrants in dangerous situations, many leading to serious injury and even death. The SDTX is no stranger to this issue and will fervently pursue the battle, holding accountable not only the transporters, but any individuals who provided assistance along the way.”
“Today’s sentencing is a great example of how Homeland Security Investigations (HSI) uses its worldwide resources and interagency partnerships to bring international criminals like Mohamad Milon Hossain to justice in the United States,” said Special Agent in Charge Shane Folden of HSI San Antonio. “Hossain was a key facilitator and smuggler of Bangladeshi nationals and his actions put our national security at risk. HSI is committed to working with its domestic and international partners to combat this type of crime throughout the globe.”
This case was investigated by HSI Laredo, with assistance from the HSI Human Smuggling Unit, HSI Mexico City, HSI Houston, HSI Calexico, HSI Monterrey, U.S. Customs and Border Protection (CBP) Office of Field Operations, CBP Border Patrol and the U.S. Marshals Service. This investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
Trial Attorneys Erin Cox and James Hepburn of the Criminal Division’s Human Rights and Special Prosecutions Section prosecuted this case with assistance from the U.S. Attorney’s Office for the Southern District of Texas.
Attorney General Merrick B. Garland established Joint Task Force Alpha to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security (DHS), to enhance U.S. enforcement efforts against the most prolific and dangerous human smuggling and trafficking groups operating in Mexico and the countries of Guatemala, El Salvador, and Honduras. JTFA consists of federal prosecutors and attorneys from U.S. Attorney’s Offices along the Southwest Border (District of Arizona, Southern District of California, Southern District of Texas, and Western District of Texas), from the Criminal Division and the Civil Rights Division, along with law enforcement agents and analysts from U.S. Immigration and Customs Enforcement’s HSI and CBP. The FBI and the Drug Enforcement Administration are also part of the Task Force.
Man Convicted of Murder in Manhattan Federal Court for June 2000 Fatal ShootingRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced today that RALPH BERRY was found guilty by a unanimous Manhattan jury for the murder of Caprice Jones in the vicinity of 751 East 161 Street, Bronx, New York. BERRY will be sentenced before the Honorable U.S. District Judge Alison J. Nathan, who presided over the jury trial.
U.S. Attorney Audrey Strauss said: “In June of 2000, Caprice Jones was senselessly gunned down, the unintended victim of drug-dealer Ralph Berry and a co-defendant, who tragically missed their mark when trying to murder a rival dealer. Instead, their bullet struck Jones, who died after suffering a years-long spinal injury. This case typifies the inherent danger of the drug trade, which oftentimes leaves innocent victims in its wake. I commend the career prosecutors and agents of this Office in their partnership with the outstanding detectives of the NYPD for their determination in bringing closure in the cold case.”
According to the Indictment and other evidence presented at trial in federal court:
In the summer of 2000, BERRY was the head of a violent drug crew that operated in the McKinley Housing Development in the Bronx, New York. On June 21, 2000, BERRY ordered one of his subordinates to shoot a rival drug dealer with whom BERRY had been feuding over drug territory. That subordinate followed BERRY’s order and fired multiple shots into a Father’s Day barbecue being held on the McKinley Houses basketball courts. Caprice Jones, an innocent bystander who was not involved in the drug dispute, was struck in the spine by one of the bullets. The gunshot injury Jones sustained that day left him paralyzed from the waist down and ultimately caused his death in November 2010, at the age of 42.
* * *
BERRY, 54, was convicted of murder through use of a firearm, which carries a maximum penalty of life in prison and a mandatory minimum sentence of five years in prison, murder in connection with a drug trafficking crime, which carries a maximum penalty of life in prison and a mandatory minimum sentence of 20 years in prison, and murder in aid of a racketeering enterprise, which carries a mandatory minimum sentence of life in prison.
The maximum potential sentence in this case is prescribed by Congress and is provided here for information purposes only, as any sentencing of the defendants will be determined by the judge.
Ms. Strauss praised the outstanding work of the New York City Police Department and the Special Agents of the United States Attorney’s Office for the Southern District of New York.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Dominic A. Gentile, Maurene Comey, Adam S. Hobson, and Jacob R. Fiddelman are in charge of the prosecution.
Lynn Man Indicted on Firearms OffensesRead the Press Release
BOSTON – A Lynn man has been indicted in connection with illegally possessing and selling firearms.
Jufrandy Montano, 32, was indicted on one count of dealing in firearms without a license, one count of being a felon in possession of a firearm and ammunition and one count of possession of an unregistered firearm. Following an initial appearance today before U.S. District Court Magistrate Judge Judith G. Dein, Montano was returned to the State of Maine where he is currently serving a sentence on unrelated state charges.
According to the indictment, Montano sold three firearms between March 4 and March 19, 2020. Additionally, on March 4, 2020, it is alleged that Montano was in possession of a 12-gauge sawed-off shotgun that was not registered to him in the National Firearms Registration and Transfer Records. Montano does not possess a license to import, manufacture, or deal firearms and is prohibited from possessing firearms due to a prior felony conviction.
The charge of dealing in firearms without a license provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. The charge of possession of an unregistered firearm provides for a sentence of up to 10 years in prison, three years supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement. Assistant U.S. Attorney Benjamin A. Saltzman of Mendell’s Major Crimes Unit is prosecuting the case.
This prosecution is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lowell Money Manager Indicted for Defrauding Clients out of Millions of DollarsRead the Press Release
BOSTON – A Lowell man was arrested today in connection with a scheme to allegedly defraud his clients out of their life savings.
Steven Xigoros, 54, was indicted on one count of investment adviser fraud, four counts of wire fraud, two counts of aggravated identity theft, two counts of unlawful monetary transactions and one count of filing false tax returns. Xigoros will make an initial appearance in federal court in Boston this afternoon.
The indictment alleges that between 2013 and 2020, Xigoros advised his clients to entrust their money to him to make various investments and to purchase securities. Xigoros then used those funds himself, including to make payments against his gambling debts. In order to deceive his clients about the fact that he had stolen their money, it is alleged that Xigoros made a series of false statements to his clients about where their money was invested and when he would repay it. He also allegedly used one client’s name and Social Security number to open a bank account and wrote a check on that account to another client, knowing the check would bounce. According to the indictment, in total, Xigoros defrauded his clients of approximately $2.1 million.
The charge of investment adviser fraud provides for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater. The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutively to the sentence imposed for wire fraud, one year of supervised release and a fine of $250,000 or twice the gross gain or loss. The charge of unlawful monetary transactions provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000 or twice the amount of the criminally derived property involved in the financial transaction. The charge of filing false tax returns provides for a sentence of up to three years in prison, one year of supervised release and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorney Sara Miron Bloom of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Long Island Man Sentenced to 13 Years’ Imprisonment for Drug Trafficking and Firearms OffensesRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Ira Hall was sentenced by United States District Judge Joanna Seybert to 13 years’ imprisonment for distributing cocaine and the unlawful use of a firearm in furtherance of drug trafficking in August 2017. When Hall pleaded guilty in June 2021, he also admitted to distributing fentanyl that caused the death of a 27-year-old resident of Glen Cove, New York in May 2017.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, and William Whitton, Chief, Glen Cove Police Department, announced the sentence.
“Today’s sentence ensures that the defendant will serve a lengthy prison term for selling dangerous drugs while carrying a firearm, and also for callously causing the fentanyl overdose death of a resident of this district,” stated Acting U.S. Attorney Kasulis. “This Office, together with our federal and local partners, will continue to prosecute and hold accountable those who contribute to the opioid epidemic and overdose deaths in our communities.” Ms. Kasulis thanked the Drug Enforcement Administration for its assistance on the case.
“This investigation and arrest is an example of the Glen Cove Police Department’s continuing commitment to combat the sale of illegal drugs and to identify and arrest those responsible for overdose deaths occurring in our community,” stated Glen Cove Chief Whitton.
On May 30, 2017, Hall sold a quantity of fentanyl to a coconspirator who then provided the fentanyl to the victim, who suffered a fatal overdose. In August 2017, while investigating the overdose death, detectives of the Glen Cove Police Department arrested Hall after he sold cocaine in a Taco Bell parking lot while carrying a loaded .38 caliber Smith & Wesson revolver. A search warrant of Hall’s residence the following day led to the seizure of additional rounds of .38 caliber ammunition.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Charles N. Rose and Lara Treinis Gatz are in charge of the prosecution.
The Defendant:
IRA HALL (also known as “Streets”)
Age: 33
Glen Cove, New YorkE.D.N.Y. Docket No. 18-CR-239 (JS)
Laurel Narcotics Trafficker Pleads Guilty to Bringing Large Quantities of Fentanyl, Cocaine and Marijuana from California to MarylandRead the Press Release
Baltimore, Maryland – Michael Fisher, a.k.a. Mark Wilson, age 47, of Laurel, Maryland, pleaded guilty on September 24, 2021, to conspiracy to distribute and possess with intent to distribute fentanyl, cocaine, and marijuana and distribution and possession with intent to distribute fentanyl.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Superintendent Colonel Woodrow W. Jones III of the Maryland State Police; Postal Inspector in Charge Daniel A. Adame of the U.S. Postal Inspection Service - Washington Division; and Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office.
“Our law enforcement team here in Maryland is focused on prosecuting individuals like Michael Fisher who are importing large quantities of fentanyl and other dangerous drugs into the state,” said Acting United States Attorney Jonathan Lenzner. “The members of this nationwide narcotics conspiracy were responsible for the distribution of hundreds of kilograms of dangerous drugs. This investigation reflects the positive impact that law enforcement can have on our communities, not only here in Maryland but across the country.”
According to his guilty plea, since November 2019, the Maryland State Police (“MSP”), Drug Enforcement Administration (“DEA”), United States Postal Inspection Service (“USPIS”) were investigating a drug trafficking conspiracy involving Michael Fisher (a.k.a. Mark Wilson) who was distributing fentanyl, cocaine, and marijuana in the Baltimore/Washington Metropolitan areas. During the investigation, investigators obtained court-authorized wiretaps of Fisher and Co-Conspirator 1 in which they discussed the distribution of fentanyl, cocaine, and marijuana with each other and with other individuals. Investigators also conducted surveillance during which they observed drug transactions by both the Defendant and Co-Conspirator 1.
During the conspiracy, Fisher and Co-Conspirator 1 traveled to California multiple times to obtain kilograms of cocaine and fentanyl. Once in possession of the narcotics, Fisher or Co-Conspirator 1 used the U.S. Mail to ship the narcotics back to Maryland for distribution.
In May 2020, during drug interdiction activities at a Unite States Postal Service processing and distribution center in Capitol Heights, Maryland, postal inspectors interdicted multiple U.S. Mail parcels, including a parcel bound for a location in Laurel, Maryland that was identified as a location maintained by Fisher. On May 22, 2020, the Honorable Charles B. Day authorized a search warrant for this parcel, and investigators recovered approximately 2 kilograms of cocaine from the parcel.
Between June 1, 2020 and June 3, 2020, investigators intercepted several telephone calls between Fisher and Co-Conspirator 2. Based on the content of the intercepted phone calls, investigators believed that Fisher and Co-Conspirator 2 were arranging a drug transaction. On June 3, 2020, investigators intercepted a call between Fisher and Co-Conspirator 2 during which they agreed to meet in Hanover, Maryland. During surveillance, investigators observed Co-Conspirator 2 exit his vehicle, walk to Fisher’s vehicle, and retrieved an object from Fisher. The object was later determined to be a heat-sealed bag containing approximately 501 grams of fentanyl. Co-Conspirator 2 walked back to his vehicle and placed the object into the vehicle’s trunk.
Later that day, at the request of investigators, Troopers with MSP conducted a traffic stop of Co-Conspirator 2’s vehicle and located a heat-sealed bag containing a pink powdery substance, later revealed to be fentanyl with a net weight of approximately 501.9 grams. Fisher admits that he distributed the fentanyl to Co-Conspirator 2 during their earlier meeting that day in Hanover, Maryland.
A few months later, on August 6, 2020, USPIS received an alert that two Priority Mail parcels had been sent from the El Segundo Branch Post Office in El Segundo, CA on the previous day, August 5, 2020. The parcels were bound for locations in Maryland associated with Fisher and the conspiracy. These two parcels were seized by investigators in Maryland before they were delivered. On August 13, 2020, the Honorable Thomas M. DiGirolamo authorized a search and seizure warrant for both of the parcels. One parcel was found to contain approximately 2,086 grams of cocaine and the second parcel contained approximately 2,110 grams of fentanyl. Investigators obtained video surveillance from the El Segundo Branch Post Office, which showed Co-Conspirator 1 at the post office at the time the parcels were mailed.
On August 4, 2020, court-authorized cell phone location data showed Co-Conspirator 1’s cell phone in the area of 3828 North Peck Rd, El Monte, California. On August 13, 2020, investigators located Fisher driving along California Interstate 15 South, in a rented Nissan Sentra. Investigators followed Fisher to the Northgate Market parking lot located at 3828 North Peck Rd, El Monte, California—the same location where Co-Conspirator 1’s cell phone was located several days earlier. After circling the parking lot several times, Fisher parked. Shortly thereafter, investigators observed a white Honda SUV with a female driver and a male passenger park next to Fisher’s vehicle. Fisher exited his vehicle, removed a box from the trunk of his vehicle, and placed the box inside of the Honda SUV. Fisher returned to his vehicle and departed, and the two occupants in the Honda departed in a different direction. Investigators conducted a traffic stop of the Honda shortly thereafter and obtained consent to search the vehicle from the driver and from the passenger, Co-Conspirator 3. After searching the vehicle, investigators located the box that Fisher had placed in the Honda. The box contained several packages of bulk currency, totaling approximately $190,020.
Co-Conspirator 3 then gave investigators consent to search his residence. A search of the residence revealed two duffle bags containing approximately 30 kilograms of cocaine, along with two additional duffle bags that contained narcotics proceeds. The amount of currency located in the residence totaled approximately $193,980, not including the approximately $190,020 that the Defendant provided to Co-Conspirator 3 earlier that day.
On August 14, 2020, the Honorable Thomas M. DiGirolamo authorized search warrant for the six locations in Maryland. On August 17, 2020, the Honorable Cam Ferenbach, United States Magistrate Judge for the District of Nevada, authorized a search warrant for a residence in Las Vegas, Nevada. These search warrants were executed on August 17, 2020. In addition, on September 1, 2020, investigators executed a search warrant at a house in Hanover, Maryland, which was an additional residence used by Fisher. During the execution of the search warrants, investigators seized numerous firearms, kilogram quantities of narcotics, and large amount of U.S. Currency.
Investigators also executed search warrants on cellular telephones seized from Fisher and others. One of Fisher’s cell phones contained photographs of a drug ledger, which was sent to Fisher from a source of supply of narcotics. The ledger confirms that between November 2019 and May 2020, the conspiracy obtained more than 115 kilograms of cocaine and 2 kilograms of fentanyl from California and mailed it back to Maryland for distribution. In several instances, the dates and quantities on the ledger correspond to CCTV footage of Fisher in a Los Angeles Post Office mailing packages back to Maryland. For example, the ledger indicates that Fisher obtained 10 kilograms of cocaine on December 11, 2019, which corresponds to CCTV footage of Fisher on December 11, 2019 in a Los Angeles-area Post Office personally mailing 5 packages to Maryland. In total, between July 2019 and August 2020, the conspiracy was responsible for mailing approximately 121 parcels from Los Angeles-area Post Offices to locations in Maryland. The narcotics accounted for in the drug ledger represent only 47 of those parcels.
In total, during this investigation, investigators seized 15 firearms—9 firearms from Fisher and 6 firearms from Co-Conspirator 1—along with approximately 35 kilograms of cocaine, approximately 6.5 kilograms of fentanyl, and approximately 50 kilograms of marijuana. In addition, investigators seized approximately $1,501,308, which Fisher admits constituted proceeds from the sale of narcotics.
Fisher and the Government have agreed that, if the court accepts the guilty plea, Fisher will be sentenced to between 12 and 15 years in federal prison. U.S. District Judge Stephanie A. Gallagher has not scheduled a sentencing hearing at this time.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The overdose crisis continues to devastate our states and local communities. If you believe you may need substance use disorder treatment or recovery services, please call 1800-662-HELP (4357). You may also visit the United States Attorney’s Office for the District of Maryland for further information and resources on opioid awareness at /media/1138691/dl?inline.
Acting United States Attorney Jonathan F. Lenzner commended the MSP, USPIS, and DEA for their work in the investigation. Mr. Lenzner also thanked the Los Angeles Police Department, Los Angeles DEA, Assistant U.S. Attorney Anatoly Smolkin, and Special Assistant U.S. Attorney Christopher J. Romano, who are prosecuting the case.
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Justice Department Resolves Lawsuit Alleging Disability-Based Discrimination at 38 Multifamily Housing Complexes in North CarolinaRead the Press Release
The Justice Department announced that Mills Construction Company Inc. and several related entities have agreed to pay $275,000 to settle claims that they violated the Fair Housing Act and the Americans with Disabilities Act (ADA) by failing to build 38 multifamily housing complexes in North Carolina with required accessible features for people with disabilities. As part of the settlement, the defendants also agreed to make extensive retrofits to remove accessibility barriers at the complexes.
The settlement, which must be approved by the U.S. District Court for the Eastern District of North Carolina, requires the defendants to pay all costs related to the retrofits, $225,000 into a settlement fund to compensate individuals harmed by the inaccessible housing and a civil penalty of $50,000 to the government.
“For over 30 years, the Fair Housing Act has required that new housing complexes be accessible to individuals with disabilities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “By requiring modifications to the properties, this settlement will reduce substantial barriers faced by people with disabilities in their own homes and will advance the Fair Housing Act’s promise of housing that is accessible for all.”
Under the settlement, the defendants will, among other things, replace steeply-sloped walkways so residents can reach mailboxes and entrances to the properties, remove obstacles from pedestrian pathways, install lever handles on doors and widen doorways to provide sufficient space for individuals who use wheelchairs. The complexes at issue, many of which were built with financial assistance from the federal government’s Low-Income Housing Tax Credit program, are:
- Perry Lane Apartments, Arden, Columbus County;
- Dunbar Place Apartments, Asheville, Buncombe County;
- Smith Creek Apartments, Bermuda Run, Davie County;
- Emerald Forest Apartments, Biscoe, Montgomery County;
- Willow Oak Run Apartments, Charlotte, Mecklenburg County;
- Soco Creek Village Apartments, Cherokee, Swain/Jackson Counties;
- River Run Apartments, Chocowinity, Beaufort County;
- Sampson Square Apartments, Clinton, Sampson County;
- Long Creek Apartments, Dallas, Gaston County;
- Long Creek II, Dallas, Gaston County;
- Lovett Square Apartments, Durham, Durham County;
- Savannah Place Apartments, Durham, Durham County;
- Sherwood Park Apartments, Durham, Durham County;
- Filbert’s Creek Apartments, Edenton, Chowan County;
- Lakeside Apartments, Elizabeth City, Pasquotank County;
- Enfield Pointe Apartments, Enfield, Halifax County;
- Myrtle Place Apartments, Goldsboro, Wayne County;
- Woodlane Street Apartments, Granite Falls, Caldwell County;
- Kittrell Place Apartments, Greenville, Pitt County;
- Best Village I Apartments, Kinston, Lenoir County;
- Best Village II Apartments, Kinston, Lenoir County;
- Forest Hill Apartments, Lexington, Davidson County;
- Fairview Manor Apartments, Lillington, Harnett County;
- Fairview Pointe Apartments, Lillington, Harnett County;
- Northeast Pointe Apartments, Lumberton, Robeson County;
- Mocksville Pointe Apartments, Mocksville, Davie County;
- Sandy Ridge Apartments, Raeford, Hoke County;
- Chestnut Hills Apartments, Raleigh, Wake County;
- Hodges Creek Apartments, Raleigh, Wake County;
- Marsh Creek Apartments, Raleigh, Wake County;
- Milburnie Road Apartments, Raleigh, Wake County;
- West Oaks Apartments, Raleigh, Wake County;
- Chapel Ridge Apartments, Roanoke Rapids, Halifax County;
- Chapel Ridge Manor Apartments, Roanoke Rapids, Halifax County;
- Rollinwood Manor Apartments, Rocky Mount, Edgecombe County;
- Firetower Crossing Apartments, Sanford, Lee County;
- Sandhill Manor Apartments, Sanford, Lee County; and
- Tabor Landing Apartments, Tabor City, Columbus County.
The Mills defendants cooperated fully with the department’s investigation.
Individuals who believe they or someone they know may have had difficulties because of the inaccessible conditions at any of these properties should e-mail the Justice Department at [email protected] or leave a message at 1-833-591-0291, selecting option 1 for English, selecting option 4 for housing accessibility for persons with disabilities, and selecting option 3 for Mills.
The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing based on disability, race, color, religion, national origin, sex and familial status. This law requires that multifamily housing buildings with four or more units constructed after March 13, 1991, have basic accessible features. Enacted in 1990, the Americans with Disabilities Act requires that places of public accommodation, such as rental offices at multifamily housing complexes constructed after Jan. 26, 1993, be accessible to persons with disabilities.
More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. Individuals may report disability discrimination or other forms of housing discrimination by calling the Justice Department at 1-833-591-0291, or submitting a report online at www.civilrights.justice.gov. Individuals also may report discrimination by contacting the Department of Housing and Urban Development at 1-800-669-9777, or by filing a complaint online.
Jury Convicts Madison County Man of Drug ConspiracyRead the Press Release
SYRACUSE, NEW YORK – Ernest Shaw, Sr. of New Woodstock, New York, was convicted yesterday of conspiracy to distribute and possess with intent to distribute in excess of five kilograms of cocaine, and 28 grams of cocaine base (crack) following a five-day jury trial in United States District Court in Syracuse, announced Acting United States Attorney Antoinette T. Bacon and Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division.
During the trial, evidence was presented that proved Ernest Shaw, Sr. conspired with others from September 2017 to September 25, 2019, to distribute and possess with intent to distribute cocaine and cocaine base in the Syracuse area. As part of the verdict, jurors unanimously found that the defendant’s part in the conspiracy involved in excess of 5 kilograms of cocaine and 28 grams of cocaine base (crack). The trial evidence included the seizure of over 171 grams of powder cocaine and over 80 grams of crack cocaine from a stash house in Nedrow, New York used by Shaw to store drugs prior to distributing them to drug dealers and drug users in the Syracuse area. Following the jury verdict yesterday, Ernest Shaw, Sr. agreed to the forfeiture of $36,335.00 in cash seized as drug proceeds by DEA during the execution of a search warrant at his home in New Woodstock, New York on September 25, 2019. Shaw also agreed to a forfeiture money judgment in the amount of $105,000.00 for unrecovered proceeds he acquired during the conspiracy through the sale of cocaine and cocaine base (crack).
Ernest Shaw, Sr. was previously convicted of conspiracy to distribute and possess with intent to distribute cocaine in federal court in Syracuse in March 2007. He pled guilty and was sentenced to serve 41 months in federal prison in that case.
Sentencing is scheduled for February 3, 2022 in Syracuse, New York, at which time the defendant faces a mandatory minimum sentence of 15 years and a maximum sentence of life imprisonment, a fine of up to $20,000,000.00, and a period of supervised release of at least 10 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the United States Drug Enforcement Administration (DEA)-Syracuse Resident Office, which includes Task Force Officers from the City of Auburn Police Department, the City of Syracuse Police Department, the New York State Police, and the Oneida County Sheriff’s Office. Other Agencies that assisted in this investigation included the New York State Police, the Onondaga County Sheriff’s Office, Investigators from the Onondaga County District Attorney’s Office, and the U.S. Department of Homeland Security-Homeland Security Investigations (HSI). The case is being prosecuted by Assistant U.S. Attorney Thomas Sutcliffe and Assistant U.S. Attorney Richard Southwick.
Jury Convicts Louisville Man of Child Exploitation OffensesRead the Press Release
LOUISVILLE, KY. – A federal jury convicted Joseph Samir Zakhari on September 24, 2021, of multiple child exploitation offenses following a five-day trial held before United States District Judge Rebecca Grady Jennings.
According to court documents and evidence presented at trial, the charges against Zakhari, age 34, of Louisville, Kentucky, stemmed from the October 2019 joint federal, state, and local online undercover investigation – “Operation Gabbi Doolin.” During the course of this investigation, and while authorized by the Kentucky Attorney General to conduct undercover investigations on the internet, a detective posed as a 15-year-old girl on a social media app with the username “boredcrbgirl.” On October 6, 2019, a person with the username “jzakhari,” later identified as Joseph Samir Zakhari, contacted boredcrbgirl. Zakhari told boredcrbgirl that he was 32 and asked her age. Boredcrbgirl responded that she was 15. A conversation then developed that was made sexual by Zakhari, and, from October 6 until October 8, Zakhari requested details about boredcrbgirl’s sexual history, repeatedly talked about sex acts he wanted to engage in with boredcrbgirl, and asked for sexual images of boredcrbgirl. Zakhari also sent sexually explicit images of himself to boredcrbgirl and requested to meet in person so that the two could engage in sex acts.
On October 8, 2019, Zakhari sent an Uber to pick up boredcrbgirl to bring her to his condominium, with the stated purpose of the trip being for the two to engage in sex acts. Undercover law enforcement officers followed a decoy law enforcement officer in the Uber to the destination specified by Zakhari. Upon arrival, the decoy sent a message at 5:16 p.m., “I’m outside,” to which Zakhari responded “coming down.” The decoy got out of the Uber and stood in front of the provided address. Shortly thereafter, Joseph Samir Zakhari, opened the door and invited her in. Law enforcement officials subsequently arrested Zakhari.
The jury found Zakhari guilty of attempted online enticement of a minor, attempted transfer of obscene material to a minor, and attempted production of child pornography.
Acting United States Attorney Michael A. Bennett made the announcement.
Sentencing is scheduled for January 11, 2022, at 10:00 a.m. Under federal law, Zakhari is facing a mandatory sentence of not less than fifteen years’ imprisonment. There is no parole in the federal system.
Assistant United States Attorney Jo E. Lawless is prosecuting the case. The joint investigation was conducted by the United States Secret Service and Kentucky Attorney General’s Office with assistance from the Louisville Metro Police Department, United States Marshals Service, and Kentucky State Police.
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This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."