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21 September 2021
Jury Convicts Columbia Man of Illegal FirearmRead the Press Release
JEFFERSON CITY, Mo. – A Columbia, Missouri, man has been convicted by a federal trial jury of illegally possessing a firearm.
Jeremiah Ezekiel Brown, 36, was found guilty on Monday, Sept. 20, of being a felon in possession of a firearm.
Brown was arrested by a Columbia police detective during a traffic stop on Nov. 24, 2020. The detective searched him and found a loaded Glock 9mm semi-automatic handgun in Brown’s waistband. Detectives searched the vehicle Brown was driving and found a backpack in the front seat that contained a total of 37 grams of marijuana, 10 packages that contained marijuana edibles, 14 doses of LSD, a baggie of .5 grams of cocaine and two Alprazolam bars. They also found an empty Glock extended magazine with a 31-round capacity and a pair of brass knuckles.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Brown has prior felony convictions for possession of stolen things, possession of a controlled substance, robbery, receiving stolen property and attempted delivery of a controlled substance into a prison.
Following the presentation of evidence, the jury in the U.S. District Court in Jefferson City, Mo., deliberated for about 30 minutes before returning the guilty verdict to U.S. District Judge Nanette K. Laughrey, ending a one-day trial.
Under federal statutes, Brown 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. Attorneys Aaron M. Maness and Ashley S. Turner. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Columbia, Mo., Police Department.
Judge sentences St. Louis man to drug and weapon chargesRead the Press Release
ST. LOUIS – Landon Whitfield, 26, of St. Louis, Missouri, appeared before United States District Court Judge Ronnie L. White on today’s date and was sentenced to 84 months in federal prison. Whitfield previously pleaded guilty to one count of possession with intent to distribute fentanyl and one count of possession of a firearm in furtherance of a drug trafficking crime.
On November 6, 2019, members of the St. Louis Metropolitan Police Department observed Whitfield driving a vehicle with heavily tinted windows. Knowing that this vehicle had previously fled from the officers on several occasions, the officers attempted to conduct a traffic stop on the vehicle. Whitfield fled from the officers and committed numerous traffic violations in the process. In an effort to disable the vehicle, the officers successfully deployed spike strips, deflating two of its tires. Undeterred and causing a substantial risk of death or serious bodily injury, Whitfield continued to flee in the vehicle and almost struck a police car in the process. Whitfield eventually abandoned his vehicle and fled from officers on foot while armed with an AR-15-type firearm.
Several officers confronted Whitfield in an alley. Whitfield raised his firearm. An officer, fearing for his safety, fired one shot in response. Whitfield then dropped his firearm and a green bag he had over his shoulder. Whitfield tried to continue his escape by climbing a nearby fence but was taken into custody.
The firearm Whitfield possessed was a Matrix Aerospace M556-SC semi-automatic pistol. It was loaded with 22 rounds of ammunition in an extended magazine. Inside Whitfield’s green bag were 345 capsules of fentanyl weighing approximately 37 grams.
This case was investigated by the St. Louis Metropolitan Police Department.
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Joplin Man Sentenced for Meth, Illegal FirearmsRead the Press Release
SPRINGFIELD, Mo. – A Joplin, Missouri, man was sentenced in federal court today for possessing methamphetamine to distribute and for illegally possessing firearms.
Nathan Scott Thomas, 42, was sentenced by U.S. District Judge M. Douglas Harpool to 11 years in federal prison without parole.
On May 3, 2021, Thomas pleaded guilty to one count of possessing methamphetamine with the intent to distribute and one count of possessing firearms in furtherance of a drug-trafficking crime.
On Jan. 29, 2020, law enforcement officers executed a search warrant at Thomas’s residence. Officers found a safe in the master bedroom that contained a loaded Ruger .380-caliber semi-automatic pistol, a loaded Jimenez 9mm semi-automatic pistol, and approximately 197 grams of methamphetamine.
According to court documents, Thomas is an active member of the Universal Arian Brotherhood with a lengthy criminal history. In addition to these federal offenses, Thomas has no less than 19 pending cases arising from incidents that occurred between August 2019 and his March 2021 arrest. In September 2020, a warrant was issued in connection with this case. In December 2020, Thomas fled from law enforcement officers while in possession of methamphetamine and a 9mm handgun. In March 2021, Thomas again fled from law enforcement before being apprehended and federally detained. Thomas has been in federal custody since his arrest on March 4, 2021.
This case was prosecuted by Assistant U.S. Attorney Jessica R. Sarff. It was investigated by the FBI, the Ozarks Drug Enforcement Team and the Joplin, Mo., Police Department.
Jicarilla Apache man sentenced to 33 years in prison for murder in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Allister Quintana, 26, of the Jicarilla Apache Tribe, was sentenced on Sept. 17 in federal court to 33 years and nine months in prison for second degree murder in Indian Country. Quintana pleaded on Jan. 22, 2020.
In his plea agreement, Quintana admitted to restraining and confining John Doe in a closet, causing his death. The killing occurred in Rio Arriba County, New Mexico, on the Jicarilla Apache Indian Reservation.
Upon his release from prison, Quintana will be subject to five years of supervised release.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from Jicarilla Apache Police Department. Assistant U.S. Attorneys Joseph Spindle and Frederick Mendenhall prosecuted the case.
Individual Pleads Guilty to Possession with Intent to Distribute Methamphetamine and Possession of Firearm in Furtherance of Drug TraffickingRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Timothy Allen Stacy, II, 33, entered a guilty plea to one count of Possession with Intent to Distribute Methamphetamine, in violation of 21 United States Code Sections 841(a)(1) and 841(b)(1)(B), punishable by a term of imprisonment that may not be less than 5 years and not more than 40 years, a fine not to exceed the greater of that authorized in accordance with the provisions of Title 18 or $5,000,000.00, or both, a term of supervised release to be determined by the court, and a special assessment in the amount of $100.00, and one count of Possession of a Firearm in Furtherance of Drug Trafficking Crime, in violation of 18 United States Code Sections 924(c)(1)(A) and 924(c)(1)(B)(i), punishable by a term of imprisonment of not less than 10 years, a fine of up to $250,000.00, a term of supervised release to be determined by the court, and a special assessment in the amount of $100.00.
The Indictment charged defendant with crimes stemming from an incident on January 5, 2021 where officers were dispatched to a convenience store in Henryetta, Oklahoma regarding a male in a Jeep trying to run over a female. The defendant was found sitting in his Jeep in front of the store and told the officer that he was fighting with his girlfriend and trying to get her back in the vehicle. Upon the defendant’s exit from his Jeep, the police officer observed a loaded pistol magazine fall to the floorboard. A subsequent search of the vehicle revealed several firearms, to include a shotgun with a modified barrel of less than 18 inches, over 100 rounds of ammunition of various calibers, two notebooks/journals, scales, baggies and a bag that contained a white crystal-like substance. That crystal-like substance tested positive for methamphetamine and weighed 43.03 grams. At the plea, the defendant admitted that he intended to sell or distribute the methamphetamine and that he possessed the numerous weapons to provide protection for his drugs and money.
The charges arose from an investigation by the Henryetta Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Drug Enforcement Administration.
The Honorable Scott Palk, U.S. District Judge in the United States District Court for the Western District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report.
Assistant U.S. Attorney Edith Singer represented the United States.
Illinois Man Sentenced to Federal Prison for Iowa Meth ConvictionRead the Press Release
On September 17, 2021, a man who conspired to distribute meth was sentenced to 15 years’ in federal prison.
Adrian Estrada, 29, from Rockford, Illinois, had previously pled guilty on April 10, 2021, to one count of conspiracy to distribute methamphetamine.
Evidence from the plea and sentencing hearings showed that from about December 2018 through November 8, 2019, Estrada regularly provided co-conspirators in central Iowa one to three-pound quantities of methamphetamine for over a year, totaling more than 35 pounds of methamphetamine. Estrada resided in Illinois (Rockford) and would transport methamphetamine to co-conspirators in Eagle Grove, Iowa, for further re-distribution in the Northern District of Iowa. Estrada would also collect drug money owed by his co-conspirators. At sentencing, after the presentation of evidence, the district court found that in January of 2019, Estrada and three others confronted a co-conspirator and his friend, and assaulted them by force and threats over a disputed drug debt, including pistol-whipping each victim in an effort to obtain money or methamphetamine. Each of the two victims were treated at local hospitals for injuries consistent with blunt force trauma to the head.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Estrada remains in custody of the United States Marshal until he can be transported to a federal prison. Estrada was sentenced to 180 months’ imprisonment and must serve a term of five years of supervised release following imprisonment.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa Division of Narcotics Enforcement, the Wright County Sheriff’s Office, the Eagle Grove Police Department, the Iowa Division of Criminal Investigation Laboratory and the United States Marshal Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-3012. Follow us on Twitter @USAO_NDIA.
Illegal Possession of Drugs and Firearms Send Two Shreveport Men to Federal PrisonRead the Press Release
SHREVEPORT, La. – Acting United States Attorney Alexander C. Van Hook announced that two defendants were sentenced today by United States District Judge Donald E. Walter to time in federal prison for their role in two separate cases related to drug and firearms crimes.
Dale Wayne Green, Jr., 39, of Shreveport, was sentenced to 40 months in prison, followed by 3 years of supervised release. Green went to trial in April 2021 and was convicted by a federal jury of being a convicted felon in possession of a firearm and possession of cocaine with intent to distribute. Evidence presented at the trial revealed that on June 11, 2019, the Shreveport/Caddo Narcotics Task Force received information that illegal narcotics were being sold at a residence on Harrison Street in Shreveport. Law enforcement agents began conducting surveillance and observed multiple vehicles parked in and around the residence, as well as suspicious activity by individuals visiting the residence. Agents approached the residence and observed Green drop an item on the ground and walk away from the area to the rear of a vehicle in the driveway. They later discovered the dropped item to be cocaine in a sandwich bag which contained individually wrapped packaged bags containing cocaine. Green also had a large amount of cash and car keys in his pocket that went to a car parked across the street. A K-9 officer conducted a sniff search of the vehicle and the K-9 officer alerted to the presence of narcotics. Green gave consent to search the vehicle and agents found a loaded handgun in the console. Also found in the car were numerous personal documents belonging to Green.
Green’s previous felony conviction was for manslaughter in Caddo Parish in 2002. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition.
The ATF, Shreveport Police Department and Caddo Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorneys Brandon B. Brown and Mike T. Shannon prosecuted the case.
Miquon Gerrod Rachal, 29, of Bossier City, Louisiana, was sentenced to 84 months in prison, followed by 3 years of supervised release, for possession of a firearm by a convicted felon. On November 18, 2020, Rachal was charged with being a convicted felon in possession of a firearm and pleaded guilty to the charge on February 24, 2021. According to information presented to the court, on July 6, 2020, Louisiana State Police Trooper initiated a traffic stop on a vehicle for having flashing purple illuminated lamps on the undercarriage of the vehicle. The State Trooper asked the driver to exit the vehicle and the driver was unable to locate his drivers license or proof of insurance. The State Trooper noticed the smell of marijuana coming from the vehicle and Rachal admitted to smoking it. The vehicle was searched, and the trooper found a small amount of marijuana and a loaded semi-automatic pistol under the driver’s seat.
Rachal admitted that the gun was his and knew that as a convicted felon, he was prohibited from having it. Rachal has prior felony convictions for possession of marijuana (2012), simple robbery (2013), and attempted possession of a firearm or carrying a concealed weapon by a convicted felon (2015).
The ATF and Louisiana State Police conducted this investigation and Assistant U.S. Attorney Tennille Gilreath prosecuted the case.
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Helena pawn shop and gun dealer admits firearms crimesRead the Press Release
GREAT FALLS – A Helena pawn and consignment shop operator accused of lying about gun sales and failing to keep proper records today admitted firearms crimes, Acting U.S. Attorney Leif M. Johnson said.
Catherine Suzanne Morsette, 38, of Boulder, and who is the federal firearms licensee for Modern Pawn & Consignment, pleaded guilty to two counts of false statement during a firearms transaction and to failure to keep proper records. A plea agreement calls for three other counts in an indictment to be dismissed at sentencing if the court accepts the agreement. Morsette faces a maximum five years in prison, a $250,000 fine and three years in prison.
Chief U.S. District Court Judge Brian M. Morris presided. Chief Judge Morris set sentencing for Jan. 13, 2022. Morsette was released pending further proceedings.
The government alleged in court documents that Morsette is the federal firearms licensee for Modern Pawn & Consignment, Inc., 1330 North Montana Ave., in Helena. During an undercover investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, a man and a woman went to the business where the man looked at a Beretta 9mm pistol on April 14. The man let Morsette know that he was not a Montana resident and showed his out-of-state driver’s license. Morsette told the man that the woman should fill out the ATF form because she could not sell that firearm to him. The woman completed the form as instructed and purchased the Beretta 9mm pistol for the man. Morsette then sold the man a Smith and Wesson .45-caliber pistol after she called co-defendant, Isaiah Morsette, to confirm that the .45-caliber gun was not in the store’s system. During the transaction, Morsette told the man and woman that the shop was hers and she was the boss but that her husband handled the gun stuff for her. Isaiah Morsette has pleaded not guilty to charges.
The government alleged Catherine Morsette knowingly made a false statement stating that the named purchaser of the Beretta 9mm pistol was the actual buyer, the woman, when in fact she knew the actual buyer of the firearm was the man. In addition, Catherine Morsette willfully sold and delivered a Smith and Wesson .45-caliber pistol without noting the name of the purchaser in her records as required.
The government further alleged that on April 29, a man, identified as #3, bought a Ruger .44 magnum revolver for a man identified as #2. Man #2 went to the pawn shop and interacted with Catherine Morsette, who called Isaiah Morsette for prices. After Man #3 arrived, Man #2 told Catherine Morsette that, “we’ll buy the firearm.” Catherine Morsette told Man #3 that he had to pay, “I don’t care how you leave the store with it, but he has to pay for it.” Catherine Morsette and Man #3 then filled out the paperwork for the revolver. Catherine Morsette knowingly made a false statement by stating the named purchaser of the revolver was the actual purchaser, Man #3, when in fact she knew the actual purchaser was Man #2.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
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Hartford Man Pleads Guilty to Federal Firearm ChargeRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that ALLEN EVANS, 35, of Hartford, pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to unlawful possession of a firearm and ammunition by a felon.
According to court documents and statements made in court, on October 23, 2020, Hartford Police stopped a car in which Evans was a passenger. Evans was arrested after a search of his person revealed a loaded Taurus Model 85 “.38 Special” handgun, and a search of the vehicle revealed additional ammunition.
At the time of his arrest, Evans was on state probation following a conviction in 2018 for possession of a weapon in a motor vehicle.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Evans has been detained since his arrest.
Judge Meyer scheduled sentencing for December 14, 2021.
This matter was investigated by the Hartford Police Department and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Edward Chang.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Fredericksburg Man Pleads Guilty to Straw Purchasing Numerous FirearmsRead the Press Release
ALEXANDRIA, Va. – A Fredericksburg man pleaded guilty today to conspiracy to make false statements to federally licensed firearms dealers during the purchase of firearms.
“This case serves as another example of our resolve to hold accountable those who illegally purchase guns on behalf of others,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “While straw purchasers are often unaware of how the firearms they unlawfully obtain will be used, that’s what makes this conduct so dangerous, and it is why we must continue working together to prevent these crimes from occurring. Through our close partnerships on the federal, state, and local level, we have been leveraging the latest technology, evidence, data, and intelligence to combat firearms trafficking and reduce the tragic toll that gun violence has on our communities.”
According to court documents, Bernard Jenkins, Jr., 24, purchased 18 firearms from vendors in Fredericksburg and Colonial Heights between August 2019 and April 2020. Jenkins certified to the federally licensed firearms dealers from whom he purchased the firearms that he would be the owner of the firearms when, in fact, 16 of the firearms purchased by Jenkins were transferred to other individuals after purchasing. As reflected in the statement of facts filed with the plea agreement, several of the firearms purchased by Jenkins have been recovered at crime scenes since his purchases.
Jenkins is scheduled to be sentenced on Feb. 8, 2022. He faces a maximum penalty of five years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Charlie J. Patterson, Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after Senior U.S. District Judge Liam O’Grady accepted the plea.
Assistant U.S. Attorney Ronald L. Walutes, Jr. is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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. 1:21-cr-202.
Former federal probation officer pleads guilty to false statements regarding performance of supervisory dutiesRead the Press Release
AUGUSTA, GA: A former U.S. Probation Officer for the Southern District of Georgia admitted he lied about performing his supervisory duties.
Enoch Eller Jr., 47, of Augusta, pled guilty to one count of False Statements as charged by an Information, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. The charge carries a statutory maximum sentence of five years in prison, along with substantial financial penalties and a period of supervised release. There is no parole in the federal system.
“The effectiveness of court-ordered services depends on rock-solid integrity from all employees,” said Acting U.S. Attorney Estes. “While the dishonesty of one officer is troubling, it should not negatively reflect on the exceptional service of the Southern District’s probation officers.”
As charged in the information, from about March 2020 to June 2021, Eller falsely claimed that he performed drug testing and conducted home visits for certain individuals under his supervision when he had not done so.
The case was investigated by the FBI, and prosecuted for the United States by the U.S. Attorney’s Office for the Southern District of Georgia.
Former State Employee Pleads Guilty to Unemployment Insurance FraudRead the Press Release
ALBANY, NEW YORK – Tramaine Pope, age 33, of the Bronx, New York, pled guilty today to federal program theft, and admitted to abusing her position as a New York State Department of Labor (NYSDOL) employee to obtain $314,168 by submitting and approving 20 false unemployment insurance applications. The funds stolen by Pope included benefits from federal programs intended to help out-of-work New Yorkers during the COVID-19 pandemic.
The announcement was made by Acting United States Attorney Antoinette T. Bacon; Jonathan Mellone, Special Agent in Charge, New York Region, U.S. Department of Labor, Office of Inspector General (USDOL-OIG); Joshua McCallister, Acting Inspector in Charge of the Boston Division of the United States Postal Inspection Service (USPIS); Matthew Scarpino, Acting Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI); and NYSDOL Commissioner Roberta Reardon.
Acting United States Attorney Antoinette T. Bacon stated: “Tramaine Pope violated the trust of her fellow New Yorkers during a global public health crisis that left so many without work. She was tasked with helping others at a time of substantial need, but instead exploited her position for personal gain. With our law enforcement partners, we will continue to investigate and prosecute those who abuse the public trust, and steal public funds, during this unprecedented pandemic.”
USDOL-OIG Special Agent in Charge Jonathan Mellone stated: “Tramaine Pope abused her position as a Senior Employment Security Clerk with the New York State Department of Labor to create and approve fraudulent unemployment insurance claims. Pope obtained over $300,000 from these fraudulent claims, a portion of which was earmarked for Pandemic Unemployment Assistance. We will continue to work with our law enforcement partners to protect the integrity of unemployment insurance benefit programs.”
In pleading guilty, Pope admitted to receiving lists of names and personal identifying information from another individual. Pope then used her access to NYSDOL systems to submit and approve fraudulent unemployment insurance claims using the names and other information she received.
Pope agreed to pay restitution in the amount of $314,168 to the State of New York.
Pope faces up to 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years when she is sentenced on January 21, 2022 by United States District Judge Mae A. D’Agostino. 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.
USPIS Acting Inspector in Charge Joshua McCallister stated: “The actions of Ms. Pope to use the trust given to her by the people of New York and her employer to abuse the system and steal from those who were most in need during the pandemic are unconscionable. This case is a great example of the collaborative effort of law enforcement to bring those to justice who commit criminal acts against the people of New York.”
HSI Acting Special Agent in Charge Matthew Scarpino stated: “HSI remains committed to working closely with our law enforcement partners to identify and prosecute those, like Pope, who have used the COVID pandemic to defraud not only the taxpayer but also those eligible recipients in need of legitimate COVID benefits.”
NYSDOL Commissioner Roberta Reardon stated: “There is no excuse for stealing from others, especially when a person in place of trust abuses their position to knowingly commit fraud. Let this serve as a reminder that if you break the law, you will be held accountable. I thank our partners in the U.S. Attorney’s Office and all levels of law enforcement for their commitment to working with us to fight Unemployment Insurance fraud.”
This case was investigated by USDOL-OIG, USPIS, HSI, and the NYSDOL Office of Special Investigations. The case is being prosecuted by Assistant U.S. Attorneys Joshua R. Rosenthal and John T. Chisholm.
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.
Former Fall River Mayor Sentenced to Six Years in Federal PrisonRead the Press Release
BOSTON – Jasiel F. Correia II, the former Mayor of Fall River, Mass., was sentenced today in connection with a scheme to defraud investors and extorting and conspiring to extort marijuana vendors for hundreds of thousands of dollars.
Correia, 29, was sentenced by U.S. District Court Senior Judge Douglas P. Woodlock to six years in prison and three years of supervised release. The government recommended 11 years in prison. The judge reserved judgment on restitution and forfeiture for a later date.
On May 14, 2021, Correia was convicted by a federal jury of nine counts of wire fraud, four counts of filing false tax returns, four counts of extortion conspiracy and four counts of extortion. Judge Woodlock dismissed six counts of wire fraud and two counts of filing false tax returns, for which the jury convicted Correia.
In October 2018, Correia was indicted on charges of wire fraud and filing false tax returns. He was subsequently charged in a superseding indictment in September 2019 with, among other crimes, extortion conspiracy and extortion.
“Jasiel Correia was a corrupt and deceitful politician who could only be stopped by federal prosecution. Now he is a felon and will be a federal inmate,” said Nathaniel R. Mendell, Acting United States Attorney for the District of Massachusetts. “Mr. Correia lied to investors, sold his office, and has no remorse for his crimes. That warrants a significant prison term, which is why the government recommended an 11-year sentence.”
“Jasiel Correia’s conscious decision to fleece investors, extort hundreds of thousands of dollars in bribes, and cheat on his taxes has now cost him his freedom. He has proven to be a pervasive liar who has shown absolutely no remorse or empathy for his victims, and today he has been held accountable. Sadly, his actions have further eroded the public’s trust in government, and deeply hurt the citizens of Fall River,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Let his sentence serve as a stark reminder that if you commit crimes, your status as an elected official will not protect you. The FBI is committed to rooting out public corruption and holding officials like him accountable.”
“As the Mayor of Fall River, Jasiel Correia held the public’s trust in his hands and was positioned to serve those individuals that elected him. Instead, he squandered that opportunity and was exposed as a corrupt politician,” said Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation Division, Boston Field Office. “It is a shame that an individual with such a bright future decided to misuse his elected office for personal gain. Today’s sentencing sends a clear message that corrupt public officials will pay dearly for the choices they make.”
“Jasiel Correia abused the public trust,” said Massachusetts Inspector General Glenn A. Cunha. “His sentencing should serve as a reminder that the Massachusetts Inspector General and our federal partners will ensure that officials who enrich themselves at the public’s expense will pay a personal price.”
In 2012, Correia founded SnoOwl, an app designed to connect local businesses with their target consumer market. Seven individuals invested a total of approximately $360,000 in SnoOwl. Correia used approximately $230,000 – 64% of the money invested – to fund his own lavish lifestyle, burgeoning political career and other business ventures. Specifically, Correia used the investment funds to purchase tens of thousands of dollars of luxury items, including a Mercedes, jewelry and designer clothing; to pay for personal travel and entertainment, including tens of thousands of dollars on airfare, hotels, restaurants, casinos and adult entertainment; to pay down personal student loan debt; to fund his political campaign; and to make charitable donations in his own name.
To conceal his theft of funds from investors, Correia refused to provide the company’s financial records and gave false positive updates on SnoOwl’s status. Additionally, in May 2017, Correia instructed an accountant to file amended 2013 and 2014 personal tax returns in an effort to conceal his fraudulent activity from the IRS.
After taking office as Fall River Mayor in January 2016, Correia agreed to issue non-opposition letters to marijuana vendors in return for cash bribes and other payments. Under Massachusetts law, non-opposition letters from the head of local government are required in order to obtain a license to operate a marijuana business. Correia, as Mayor, was solely responsible for approving all non-opposition letters in Fall River. In addition, applicants seeking marijuana licenses are required to enter into host community agreements, between the marijuana company and the local government, stating that the company will give up to 3% of its gross sales to the local government.
Four marijuana vendors agreed to pay bribes ranging from over $75,000 up to $250,000 in cash, campaign contributions and mortgage discharges to Correia and his co-conspirators in return for non-opposition letters and host community agreements.
Acting U.S. Attorney Mendell; FBI Boston SAC Bonavolonta; IRS-CI SAC Simpson; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; and Massachusetts Inspector General Cunha made the announcement today. Assistant U.S. Attorneys Zachary Hafer, David Tobin, Carol E. Head and Mark T. Quinlivan of Mendell’s Office prosecuted the case.
Former Chick-fil-A Employee Pleads Guilty for Scheme to Steal FundsRead the Press Release
BIRMINGHAM, Ala. – A former Chick-fil-A employee pleaded guilty today to participating in a conspiracy to defraud his former employer and committing bank fraud, announced U.S. Attorney Prim F. Escalona and U.S. Secret Service Special Agent in Charge Patrick M. Davis.
Larry James Black, Jr., 37, of Center Point, the former Director of Hospitality at Chick-fil-A Five Points, pleaded guilty to conspiracy to commit wire fraud and bank fraud before U.S. District Judge Madeline H. Haikala. Black’s sentencing hearing is scheduled for January 20, 2022. Black’s co-defendant, Joshua Daniel Powell, 40, of Moody, a former manager at the same location, pleaded guilty to conspiracy to commit wire fraud in June. Powell’s sentencing hearing is scheduled for October 20, 2021.
According to the plea agreement, between April 2018 and January 2018, Black and Powell devised and implemented a scheme to divert $492,000 in customer payments to bank accounts under their control. Black and Powell used these accounts to receive customer credit card payments intended for Chick-fil-A Five Points. Many of these payments were for catering orders from large customers. To effectuate the scheme, Black and Powell used fraudulent email and digital payment accounts that imitated the look of official Chick-fil-A accounts. In addition to these fraudulent “Chick-fil-A” accounts, Black and Powell also utilized a personal email account belonging to Powell to intercept virtual credit card payments that were made on behalf of an additional customer. Black used the fraud proceeds to support his lifestyle, including the purchase of high-end luxury vehicles and vacations.
In addition to conspiring to defraud Chick-Fil-A Five Points, Black acknowledged in the plea agreement that he provided a false social security number to various financial institutions and executed a scheme to defraud his mortgage lender. In January 2020, Black applied for a mortgage loan. In connection with his loan application, Black forged payroll records and made misrepresentations regarding his income from the Chick-fil-A franchise. As a result of these material misrepresentations, Black was able to secure a mortgage in the amount of $159,948.00 to finance the purchase of a home in Center Point, Alabama.
Black and Powell face a maximum sentence of 20 years in prison for conspiracy to commit wire fraud. Black also faces a maximum of 30 years in prison for bank fraud.
The U.S. Secret Service Cyber Fraud Task Force investigated the case. Assistant U.S. Attorney Edward J. Canter prosecuted the case.
Former Air Force contractor sentenced to prison for illegally taking 2,500 pages of classified informationRead the Press Release
DAYTON – A former contractor with the United States Air Force was sentenced in U.S. District Court to one year and one day in prison for illegally taking approximately 2,500 pages of classified documents.
Izaak Vincent Kemp, 36, of Fairborn, was charged on Jan. 25 by a Bill of Information. He pleaded guilty in federal court on Feb. 25.
According to court documents, Kemp was employed as a contractor at the Air Force Research Laboratory (AFRL) from July 2016 to May 2019, and later as a contractor at the U.S. Air Force National Air and Space Intelligence Center (NASIC). While working at AFRL and NASIC – both located on Wright-Patterson Air Force Base in Fairborn – Kemp had Top Secret security clearance.
Despite having training on various occasions on how to safeguard classified material, Kemp took 112 classified documents and retained them at his home.
Law enforcement discovered the more than 100 documents, which contained approximately 2,500 pages of material classified at the SECRET level, while executing a search warrant at Kemp’s home on May 25, 2019.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Mark J. Lesko, Acting Assistant Attorney General for the National Security Division of the Department of Justice; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; the Air Force Office of Special Investigations; and Fairborn Police Chief Terry Bennington announced the sentence imposed yesterday evening by Senior U.S. District Judge Walter H. Rice. Assistant United States Attorney Dominick S. Gerace and Trial Attorney Matthew J. McKenzie with the Department of Justice’s National Security Division are representing the United States in this case.
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Fitchburg Man Pleads Guilty to Role in Fentanyl, Heroin, Crack and Cocaine ConspiracyRead the Press Release
BOSTON – A Fitchburg man pleaded guilty yesterday in federal court in Worcester for his role in a wide-ranging fentanyl, heroin, crack and cocaine trafficking conspiracy.
Pablo Vidarte Hernandez, 48, pleaded guilty to conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin, 400 grams or more of fentanyl, 280 grams or more of cocaine base (commonly known as crack cocaine) and 500 grams or more of cocaine. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Jan. 19, 2022. Vidarte Hernandez was charged along with 17 others in July 2020.
According to court documents, following a fatal fentanyl overdose in September 2018, law enforcement began an investigation into a drug trafficking organization (DTO) in the Fitchburg area led by co-conspirators Pedro Baez and Anthony Baez. Beginning in July 2019, electronic communications revealed that Vidarte Hernandez and others distributed a fentanyl and heroin mixture on a regular basis to individuals in the Fitchburg area, including to Pedro and Anthony Baez, who redistributed that mixture to others.
Over the course of the investigation, agents seized over 1.8 kilograms of a heroin and fentanyl mixture, over 3.6 kilograms of cocaine and over 50 grams of crack cocaine, as well as a stolen, loaded handgun, drug manufacturing equipment and over $376,000. Vidarte Hernandez was responsible for distributing over a kilogram of a fentanyl and heroin mixture.
Vidarte Hernandez is the sixth defendant to plead guilty in the case. In December 2020, Anthony Baez was sentenced by Judge Hillman to 13 years in prison. Pedro Baez pleaded guilty on Feb. 3, 2021 and is scheduled to be sentenced on Jan. 18, 2022.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement today. Assistant U.S. Attorney Alathea Porter of Mendell’s Narcotics & Money Laundering Unit is prosecuting the case.
The operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The Fitchburg Police Department, U.S. Postal Inspection Service and the Lunenburg Police Department also provided valuable assistance. Assistant U.S. Attorney Alathea Porter of Mendell’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the indictment are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Federal Jury Convicts Chicago Man in Connection with Violent Carjacking in ChicagoRead the Press Release
CHICAGO — A Chicago man who carjacked a vehicle at gunpoint in the city’s Edgewater neighborhood has been found guilty of federal carjacking and weapons offenses.
The jury in U.S. District Court in Chicago on Friday convicted JAMAR JARVIS, 21, of carjacking and brandishing a firearm in connection with a carjacking. The firearm charge carries a mandatory minimum sentence of seven years in federal prison and a maximum of life, while carjacking is punishable by up to 15 years. U.S. District Judge Matthew F. Kennelly scheduled sentencing for Dec. 13, 2021, at 1:30 p.m.
The verdict was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and David Brown, Superintendent of the Chicago Police Department. The Cook County State’s Attorney’s Office provided valuable assistance. The government is represented by Assistant U.S. Attorneys Michelle Kramer and Albert Berry III.
On Oct. 18, 2018, Jarvis and two others – RAYNELL LANFORD, 21, and JAMAAL ASHSAHEED, 22, both of Chicago – forcibly took a Lexus sport-utility vehicle from a victim at gunpoint. JAVION BUSH, 21, of Chicago, provided assistance to the others after the carjacking. After taking the Lexus, Jarvis, Lanford, Ashsaheed, and Bush drove it to a gas station in the South Loop neighborhood of Chicago, where they purchased gas and a gas can. CPD officers later arrested them.
Lanford and Ashsaheed have pleaded guilty to carjacking and weapons offenses, and Bush pleaded guilty to being an accessory after the fact.
Federal Grand Jury Indicts Nine Individuals on Drug Trafficking ChargesRead the Press Release
INDIANAPOLIS – A federal grand jury in Indianapolis returned indictments charging nine people with various charges including several counts of distribution of controlled substances, money laundering, and possession with intent to distribute controlled substances.
At the end of 2020, the FBI and the IRS-CI started an investigation on possible drug dealing and money laundering activities being conducted in Indianapolis. During the investigation, agents discovered that individuals from California and Mexico were sending methamphetamine, cocaine, and fentanyl to an individual in Indianapolis. The person in Indianapolis, along with others would then sell the drugs in the Indianapolis area and send money back to California. Over $780,000 was exchanged during this investigation.
During the arrests, search warrants were also executed at various locations. In total, 15 handguns, 3 rifles, 2 shotguns, $42,000, 274 grams of cocaine and 150 pounds of marijuana were seized. Four vehicles were also seized.
Those charged are as follows:
- Martin Herrera-Diaz Jr., 29, Indianapolis, money laundering, possession with intent to distribute controlled substances.
- Sandra Herrera, 22, Indianapolis, money laundering.
- Jerzon Herrera, 28, Indianapolis, money laundering, distribution of cocaine.
- Antonio Partida-Chavez, 29, Mexico, five counts of distribution of controlled substances.
- Andy Partida-Chavez, 25, Indianapolis, distribution of controlled substances.
- Brandon Vidal, 27, Indianapolis, distribution of controlled substances.
- Miriam Rodriguez Arguello, 32, Indianapolis, distribution of controlled substances.
- Eric Martinez, 25, Indianapolis, distribution of controlled substances.
- Arnoldo Gonzalez Chavez, 23, Indianapolis, distribution of controlled substances.
If convicted, those charged with money laundering face up to 20 years imprisonment, $250,000 fine and up to 3 years supervised release. If convicted, those charged with distribution of controlled substances face 10 years to life imprisonment, $10,000,000 fine, and not less than 5 years supervised release. Jerzon Herrera also faces an additional 20-year imprisonment, $1,000,000 fine and not less than 3 years supervised release for his distribution of cocaine charge. Martin Herrera-Diaz Jr. also faces an additional 10 years to life imprisonment, $10,000,000 fine, and no less than 5 years supervised release for the possession with intent to distribute a controlled substance. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney John E. Childress of the Southern District of Indiana, FBI Indianapolis Special Agent in Charge Paul Keenan, and Acting Special Agent in Charge Tamera Cantu of IRS-CI’s Chicago Field Office made the announcement.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation.
Assistant United States Attorney Michelle P. Brady is prosecuting 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.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Fayette County Man Pleads Guilty to Sex Offense Against a MinorRead the Press Release
CHARLESTON, W.Va. – A Fayette County man pleaded guilty today to attempted enticement of a minor to engage in illegal sexual activity. Christopher Lee Foster, 36, of Oak Hill, was charged via indictment in June 2021.
According to the plea agreement, Foster admitted that in early March 2021 he initiated contact with a person via a messaging application. Believing this person to be a 13-year-old girl from New Jersey, Foster engaged in conversations over the next two months wherein he told the minor he wanted to meet her to engage in sexual activity. After learning that the girl was sexually inexperienced, Foster sent her pictures of his penis as well as numerous images and videos of pornography to teach her about sex. He also repeatedly pressured the minor to send him sexually explicit photographs of herself, even offering to pay her for such images.
Foster further admitted that in approximately 2015 and 2016 he produced (or caused the production of) sexually explicit images of a different minor.
If the plea agreement is accepted by the Court, Foster will be sentenced to between 235 months (19 years, 7 months) and 292 months (24 years, 4 months) in prison when he is sentenced on January 5, 2022. He will also be required to register as a sex offender.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the U.S. Homeland Security Investigations (HSI).
Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Jennifer Rada Herrald is handling the prosecution.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-00095.
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Dominican National Sentenced to More Than 15 Years in Prison for Fentanyl TraffickingRead the Press Release
BOSTON – A Dominican national was sentenced today in federal court in Boston for fentanyl trafficking in connection with the seizure of approximately 20 kilograms of heroin and 10 kilos of fentanyl. A firearm and $20,000 were also recovered.
Joel Cortorreal, a/k/a Angel Javier Morell-Oneill, 33, a Dominican national previously residing in Methuen, was sentenced by U.S. District Court Judge Leo T. Sorokin to 186 months in prison and five years of supervised release. Cortorreal will face deportation proceedings upon completion of his sentence. On April 29, 2021, Cortorreal pleaded guilty to one count of possession with intent to distribute 400 grams or more of fentanyl, one count of possession of a firearm in furtherance of a drug trafficking crime, one count of unlawful reentry of a deported alien and one count of being an illegal alien in possession of a firearm and ammunition.
During a traffic stop in October 2018 in Methuen, officers seized two kilograms of fentanyl from the front passenger seat of the Cortorreal’s vehicle. A subsequent search of Cortorreal’s residence resulted in the seizure of approximately 20 kilos of heroin, over eight kilos of fentanyl, drug distribution paraphernalia and a loaded firearm.
Acting United States Attorney Nathaniel R. Mendell; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement today. Valuable assistance was provided by the Somerville, Medford, Boston, Ipswich and Arlington Police Departments. Assistant U.S. Attorneys Katherine Ferguson and Nadine Pellegrini of Mendell’s Narcotics and Money Laundering Unit prosecuted the case.
Doctor Sentenced to 10 Years in Prison for Conspiring to Distribute Millions of Oxycodone Pills IllegallyRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced that RUVIM KRUPKIN, a former New York state-licensed doctor, was sentenced yesterday to 120 months in prison for conspiring to distribute medically unnecessary oxycodone unlawfully. KRUPKIN pled guilty on September 24, 2020, before U.S. District Judge Analisa Torres, who also imposed yesterday’s sentence.
U.S. Attorney Audrey Strauss said: “Dr. Ruvim Krupkin wrote medically unnecessary prescriptions for millions of oxycodone pills. He ignored his patients’ serious medical needs and his medical training, instead turning his medical clinic in Brooklyn into a pill mill, where he doled out oxycodone prescriptions in exchange for cash. Krupkin put his own greed before his duties as a medical professional, and for that he will now spend a lengthy term in federal prison.”
According to the Indictment and other court documents, as well as statements made in public court proceedings:
KRUPKIN, a former licensed internal medicine doctor with specialties in oncology and hematology, practiced at a medical office in Brooklyn. From 2006 to July 2017, KRUPKIN prescribed over four million oxycodone pills to individuals he knew had no legitimate medical need for the pills. KRUPKIN charged each patient $200 in cash for each visit, payable directly to him.
As a hematologist, KRUPKIN treated patients who had, or claimed to have, sickle cell anemia – a medical condition that can cause pain for which oxycodone, in conjunction with other treatments, may be legitimately prescribed. However, KRUPKIN wrote thousands of prescriptions for large quantities of oxycodone to patients, knowing that they in fact had no legitimate medical need for the prescriptions. KRUPKIN generally performed little to no physical examination on these patients; indeed, the medical notes for each patient were largely the same from one visit to the next.
KRUPKIN typically issued patients prescriptions for large doses of oxycodone. KRUPKIN’s patients filled their prescriptions at pharmacies throughout New York, and in certain cases, sold the oxycodone pills they received to drug dealers, who in turn re-sold the pills at high value on the street. KRUPKIN knew that certain of his patients were diverting the oxycodone pills he was prescribing, but he nonetheless continued writing prescriptions of oxycodone for such individuals.
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KRUPKIN, 70, of Summit, New Jersey, pled guilty to one count of conspiring to unlawfully distribute and possess with intent to distribute oxycodone.
In addition to the prison term, KRUPKIN was sentenced to one year of supervised release, and ordered to pay a $500,000 fine and forfeit $124,000.
In imposing yesterday’s sentence, Judge Torres said: “Krupkin had a moral and ethical obligation to do no harm. Instead, he prescribed staggering amounts of medically unnecessary pills of oxycodone. He capitalized on the pain and desperation of poor New Yorkers.”
Ms. Strauss praised the outstanding investigative work of the FBI-NYPD Health Care Fraud Task Force. Ms. Strauss also thanked the New York City Human Resources Administration for its work on the investigation.
This case is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Tara M. La Morte and Alexandra N. Rothman are in charge of the prosecution.
Deportation Officer Found Guilty of ‘Structuring’ for Hiding AssetsRead the Press Release
LOS ANGELES – A deportation officer with the Department of Homeland Security was found guilty today by a jury of “structuring” charges for making cash withdrawals and deposits totaling nearly $100,000, which were designed to circumvent federal reporting requirements and to conceal assets from his then-wife and the state court during divorce proceedings.
Vardan Keshishyan, 49, of Glendale, was found guilty of two counts of structuring of currency transactions to evade reporting requirements.
According to evidence presented at his three-day trial, shortly after his then-wife filed for divorce, Keshishyan began structuring nearly $100,000 out of his bank accounts to deceive the court into believing he only had $1,000 in assets that could be distributed during the divorce.
In January 2015, Keshishyan deposited approximately $96,000 from the sale of the home he shared with his then-wife into a bank account he solely owned and controlled. He then withdrew $99,400 from his bank accounts by making 11 cash withdrawals of approximately $9,000 – each withdrawal just shy of the bank’s mandatory reporting requirements for cash transactions above $10,000.
During one attempted withdrawal, a bank manager warned Keshishyan that it was a crime to break up a cash transaction greater than $10,000 into smaller amounts to evade the bank’s reporting requirements mandated by federal law. After the manager informed Keshishyan that the bank planned to file a report to comply with federal law, he cancelled the transaction. He then continued his pattern of structured transactions elsewhere to avoid the filing of any report required under federal law.
Once he had drained his bank accounts, according to evidence at trial, Keshishyan lied under oath to the court at a June 2015 hearing in his divorce case, falsely telling the court he had lost $95,000 of the family home sale proceeds, in part, through a bad investment. Upon learning that Keshishyan had withdrawn the funds in cash progressively over time, the court warned him that his pattern of cash withdrawals was “not permitted.”
Despite these admonishments from the court and the bank manager’s warning about the illegality of structuring, Keshishyan continued to structure to sneak the money back into his accounts. Once he and his then-wife settled on the terms of the divorce and the judgment issued, he structured $99,000 back into his bank accounts. In 2016 and 2017, he visited multiple banks, sometimes just minutes apart, to make 11 cash deposits of $9,000 each.
To conceal his pattern of cash transactions just shy of the $10,000 reporting requirement, he traveled to 11 bank branches throughout Los Angeles County to make the cash transactions and tried to further conceal his conduct through the use of multiple accounts at multiple banks.
United States District Judge Philip S. Gutierrez has scheduled a January 7, 2022 sentencing hearing, at which time Keshishyan will face a statutory maximum sentence of 10 years in federal prison.
The United States Department of Homeland Security Office of Inspector General investigated this matter.
Assistant United States Attorneys Lindsey Greer Dotson and Thomas F. Rybarczyk of the Public Corruption and Civil Rights Section are prosecuting this case.
Dallas Man Illegally in the United States Charged with Unlawful Possession of Firearms and AmmunitionRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that David DaSilva, age 33, of Dallas, Pennsylvania, was indicted on September 14, 2021, by a federal grand jury for being an illegal alien in possession of firearms and ammunition.
According to Acting United States Attorney Bruce D. Brandler, the indictment alleges that from July 2020 through September 1, 2021, in Pike County, DaSilva possessed two .22 caliber rifles and several rounds of ammunition while knowing he was illegally and unlawfully in the United States.
The case was investigated by the FBI. Assistant U.S. Attorney Todd K. Hinkley is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for these offenses is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendnt's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Clearfield County Man Indicted on Child Sexual Exploitation ChargesRead the Press Release
JOHNSTOWN, Pa. – A resident of West Decatur, Pa., was indicted by a federal grand jury in Johnstown on charges of production and possession of material depicting the sexual exploitation of a minor, Acting United States Attorney Stephen R. Kaufman announced today.
The 4-count Indictment, returned on Sept. 14 and unsealed today, named Jon Osewalt, 28, as the sole defendant.
According to the Indictment presented to the court, from on or about Feb. 24, 2020 to on or about Mar. 4, 2020, and from on or about Apr. 14, 2020 to on or about June 26, 2020, Osewalt produced images of minors engaged in sexually explicit conduct using materials that were shipped or transported in interstate or foreign commerce. Further on or about June 27, 2020, and on or about December 1, 2020, Osewalt possessed images of minors engaged in sexually explicit conduct, which were produced using prepubescent minors engaging in sexually explicit conduct. The images were produced using materials that were shipped or transported in interstate or foreign commerce.
The law provides for a maximum sentence of 80 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Department of Homeland Security Investigations and Pennsylvania State Police conducted the investigation leading to the Indictment in this case. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better 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.justice.gov/psc.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Clearfield County Felon Pleads to Firearms Law OffenseRead the Press Release
JOHNSTOWN, Pa. – A resident of Curwensville, Pa. pleaded guilty in federal court to a charge of violating federal ammunition laws, Acting United States Attorney Stephen R. Kaufman announced today.
Chancellor M. Shaw, 27, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on September 16, 2019, Shaw was found in possession of ammunition. On June 26, 2018, Shaw was convicted in the Court of Common Pleas of Clearfield County, of the crimes of flight to avoid apprehension and fleeing or attempting to elude a police officer, which are crimes punishable by imprisonment for a term exceeding one year. Federal law prohibits persons who have been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing ammunition.
Judge Gibson scheduled sentencing for Jan. 18, 2022 at 1:30 p.m. The law provides for a maximum sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pennsylvania State Police conducted the investigation that led to the prosecution of Shaw.
Ciudadano peruano sentenciado a más de 9 años en prisión por defraudar a miles de inmigrantes de habla hispana de Estados UnidosRead the Press Release
WASHINGTON – Un ciudadano peruano fue sentenciado a 110 meses en prisión por operar una serie de centros de llamadas en Perú que defraudaron a residentes estadounidenses de habla hispana, amenazándolos falsamente con arresto, deportación y otras consecuencias.
Henrry Adrian Milla Campuzano, 37, de Lima, Perú, se declaró culpable por su papel en la conspiración para cometer fraude postal y fraude electrónico por medio de dos centros de llamadas peruanos que él poseía y operaba. El acusado, junto con sus cómplices, utilizó declaraciones falsas y amenazas para obtener dinero de personas de habla hispana en todo Estados Unidos al indicar falsamente a las víctimas que debían aceptar y pagar cursos de inglés y otros productos educativos y que si no lo hacían se pondrían en peligro legal. El acusado y sus cómplices amenazaron falsamente con arrestar y deportar a sus víctimas para cobrar millones de dólares a víctimas en el sur de Florida y en todo Estados Unidos. Con la sentencia de hoy en Miami, cinco acusados fueron condenados a cumplir importantes condenas de encarcelamiento en este asunto
“La Rama de Protección al Consumidor del Departamento de Justicia perseguirá y enjuiciará a los delincuentes transnacionales que defrauden a los consumidores estadounidenses vulnerables”, dijo Brian M. Boynton, Secretario Interino de Justicia Auxiliar. “Los acusados en este caso defraudaron descaradamente a personas recién inmigradas prometiéndoles productos gratuitos para mejorar su inglés. En realidad, los acusados atarían a sus víctimas a una trampa de intimidación y miedo, que los dejaba mucho peor, con importantes pérdidas financieras y, muchas veces, cicatrices emocionales por estos crímenes. Con la sentencia de hoy, cinco acusados en este caso comparecieron ante la justicia, lo que demuestra que quienes se aprovechan de los consumidores estadounidenses desde el extranjero no lo pueden hacer con impunidad”.
“Este caso demuestra que el largo brazo de la justicia no tiene límites cuando se trata de llegar a los estafadores que se aprovechan de las poblaciones más vulnerables de nuestra nación”, dijo el Fiscal Federal Interino, Juan Antonio González, del Distrito Sur de Florida. "Continuaremos llevando la justicia estadounidense a los delincuentes transnacionales que utilizan tácticas de miedo e intimidación para robarle dinero a inmigrantes, personas mayores y otras personas que viven en este país".
“El Servicio de Inspección Postal de EE. UU. constantemente se esfuerza por proteger a nuestras comunidades de los delincuentes depredadores que buscan abusar y explotar a los miembros más vulnerables de nuestra sociedad”, dijo Joseph W. Cronin, Inspector a Cargo de la División de USPIS en Miami. "Este caso particular es un ejemplo de cómo los inspectores postales perseguirán enérgicamente este tipo de delitos y se asegurarán de que se lleva a los perpetradores ante la justicia para pagar por los delitos que han cometido.
Al declararse culpable, Milla admitió que él y sus empleados falsamente afirmaron ser abogados, funcionarios judiciales, agentes federales y representantes de un llamado "tribunal de delitos menores", que no existe. Las personas que llamaron amenazaron falsamente a las víctimas con procedimientos judiciales, marcas negativas en sus informes de crédito, encarcelamiento y consecuencias de inmigración si no pagaban de inmediato los productos supuestamente entregados y las tarifas de liquidación.
Milla era copropietario de los centros de llamadas Latinos en Acción y Acción Latino en Lima, Perú. Desde abril de 2011 hasta su arresto en julio de 2019, él y sus cómplices llamaron a las víctimas, así como a familiares y amigos de las víctimas, y las amenazaron fraudulentamente con consecuencias legales si no pagaban los productos supuestamente entregados y las tarifas de liquidación de clases de inglés.
Las autoridades peruanas arrestaron a Milla en enero de 2020, basado en la solicitud de extradición de Estados Unidos. El y cuatro coacusados fueron extraditados al Distrito Sur de Florida en octubre de 2020. Ahora se declaró culpables a estos cinco acusados y el Juez Federal de Distrito, Robert N. Scola, Jr., les impuso importantes sentencias de prisión. Además de Milla, Jerson Rentería fue sentenciado a 100 meses en prisión y Fernan Huerta, Omar Cuzcano y Evelyng Milla fueron condenadas a cumplir 90 meses en prisión, cada uno.
Dos acusados adicionales en el caso, Carlos Espinoza Huerta y Josmell Espinoza Huerta, evitaron el arresto al momento de la detención de sus cinco coacusados en Perú. Luego se localizaron y el 25 de junio fueron extraditados a Estados Unidos y se encuentran detenidos en el Centro Federal de Detención de Miami. Su juicio está programado para dar inicio el 14 de febrero de 2022, ante el Juez Scola.
Otros dos acusados en el caso, Carlos Alberto Espinoza Huerta y Josmell Arturo Espinoza Huerta, evitaron el arresto al momento de la detención de sus cinco coacusados en Perú. Luego se localizaron y el 25 de junio fueron extraditados a Estados Unidos y se encuentran detenidos en el Centro Federal de Detención de Miami. Su juicio está programado para dar inicio el 14 de febrero de 2022, ante el Juez Scola.
El Servicio de Inspección Postal de EE. UU. y la División de Protección al Consumidor de la División Civil investigaron el caso. El Fiscal Auxiliar Principal, Phil Toomajian y el abogado litigante de la Rama de Protección al Consumidor, Max Goldman, están procesando el caso. La Comisión Federal de Comercio, la Oficina de Asuntos Internacionales del Departamento de Justicia, la Fiscalía de Estados Unidos para el Distrito Sur de Florida, el Servicio de Seguridad Diplomática del Departamento de Estado y la Policía Nacional del Perú proporcionaron asistencia crucial.
La Rama de Protección al Consumidor coordina la Fuerza Transnacional de Lucha contra el Fraude de Ancianos del Departamento, trabajando junto con las Oficinas del Fiscal de Estados Unidos y las agencias de aplicación de la ley para investigar y procesar las estafas dirigidas por organizaciones criminales transnacionales, incluyendo las estafas de correo masivo, tele mercadeo y soporte técnico. Para más información sobre la Rama de Protección al Consumidor, visite su sitio web en http://www.justice.gov/civil/consumer-protection-branch.
Una dictamen acusatorio simplemente es una acusación y todos los acusados se presumen inocentes hasta que se pruebe su culpabilidad, más allá de la duda razonable en un tribunal de justicia.
Chinle Man Sentenced to Sixteen Years for Sexual Abuse of a MinorRead the Press Release
PHOENIX, Ariz. – Elbert Leonard Cly, 45, of Chinle, Ariz., was sentenced yesterday by Chief U.S. District Judge G. Murray Snow to 16 years in prison for sexual abuse of a minor. The sentence was ordered to be served consecutive to a 15-year sentence that Cly is currently serving in the Texas Department of Corrections for sexually abusing another minor. Cly previously pleaded guilty to Abusive Sexual Contact of a Child.
Between 2008 and 2010, Cly sexually abused the victim while living with the victim’s family on the Navajo Nation. Cly is an enrolled member of the Navajo Nation. Years later, the victim came forward after Cly was convicted for sexually abusing another child in Texas. Federal authorities commenced an investigation into the allegations, took Cly into federal custody, and transported him to Arizona to face these charges. After Cly finishes serving his state and federal prison terms, he will be placed on supervised release for the rest of his life.
The Federal Bureau of Investigation conducted the investigation in this case. William G. Voit, Assistant U.S. Attorney, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR 18-08314-GMS
RELEASE NUMBER: 2021-062_Cly# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Canton Man Pleads Guilty to Possession of Stolen FirearmRead the Press Release
Jackson, Miss. – A Canton man pled guilty to knowingly possessing a stolen firearm, announced Acting U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation in Mississippi.
According to court documents, on February 5, 2019, Curtis Tyaun Hart, 21, stole a handgun from the glovebox of an individual’s car. The owner of the handgun filed a police report concerning the theft. The following day, Hart was found by Jackson Police officers with the firearm in his possession.
Hart is scheduled to be sentenced on December 20, 2021, and faces a maximum penalty of 10 years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI investigated the case. Assistant U.S. Attorney Bert Carraway is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent
crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Bridgeport Man Pleads Guilty to Heroin Distribution ChargeRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that KEVIN LUCAS, also known as “Dutch,” 61, of Bridgeport, pleaded guilty today in New Haven federal court to possession with intent to distribute, and distribution of, heroin.
According to court documents and statements made in court, between May and August 2019, law enforcement made a series of controlled purchases of redistribution quantities of heroin from Lucas. Lucas was arrested on August 22, 2019. A search of Lucas’ residence at the time of his arrest revealed additional distribution quantities of heroin, approximately 139 grams of crack cocaine, approximately 365 grams of cocaine, items used to process and package narcotics, a 9mm handgun, two loaded magazines, ammunition, and $35,220 in cash.
Lucas is scheduled to be sentenced by U.S. District Judge Janet C. Hall on December 15, 2021, at which time he faces a maximum term of 20 years. Lucas is released on a $50,000 bond pending sentencing.
This investigation has been conducted by the Drug Enforcement Administration New Haven Task Force, which includes participants from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, and the New Haven, East Haven, West Haven, Branford, Ansonia, Meriden, Middletown, Naugatuck and Waterbury Police Departments.
The case is being prosecuted by Assistant U.S. Attorney Nathaniel J. Gentile.
Beaumont Man Guilty of Multiple Armed Convenience Store RobberiesRead the Press Release
BEAUMONT, Texas – A Beaumont man has pleaded guilty to federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Moses Ray Rhine, Jr., 21, pleaded guilty to Hobbs Act robbery and brandishing a firearm during a crime of violence today before U.S. Magistrate Judge Zack Hawthorn.
According to court documents, from January 11, 2021 through January 21, 2021, Rhine and others conspired to commit armed robberies of at least five convenience stores located in Southeast Texas. The stores were all engaged in interstate commerce that employed clerks who were engaged in the commercial activities of the stores at the time of the robberies. Each store was equipped with functioning surveillance cameras that recorded the robberies. Local and federal agents interviewed Rhine and he confessed to his role in the robberies. The Hobbs Act prohibits actual or attempted robbery affecting interstate commerce.
“Mr. Rhine’s operation was to plunder,” said Acting U.S. Attorney Nicholas J. Ganjei. “This case was more than just a garden-variety market robbery by a junior varsity robber. Rhine and his crew robbed convenience stores across the Beaumont community. Thanks to the excellent work of ATF and Beaumont Police, this robbery crew has been neutralized and their robbery spree has been brought to an end.”
Rhine was indicted by a federal grand jury on June 2, 2021. He faces up to life in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing 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 U.S. Probation Office.
This case is being investigated by the Beaumont Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney John B. Ross.
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Albuquerque man sentenced to five years in prison for assault in Indian CountryRead the Press Release
ALBUQUERQUE, NM – Patrick Duran, 32, of Albuquerque and formerly of Dulce, New Mexico, was sentenced on Sept. 20 in federal court to five years in prison for assault resulting in serious bodily injury in Indian Country.
Duran, a non-Indian, pleaded guilty on Aug. 26, 2020. In his plea agreement, Duran admitted that on Sept. 28, 2014, he assaulted John Doe, an Indian child, by acting roughly with him and caused Doe to suffer serious bodily injury including internal head injuries, seizures and hospitalization. The incident took place on the Jicarilla Apache Indian Reservation in Rio Arriba County, New Mexico.
Upon his release from prison, Duran will be subject to three years of supervised release.
The Farmington Resident Agency of the FBI Albuquerque Field Office and the Jicarilla Apache Police Department investigated this case. Assistant U.S. Attorneys Kyle Nayback and Nicholas Marshall prosecuted the case.
Albuquerque man arraigned on two counts of assaulting a federal officerRead the Press Release
ALBUQUERQUE, N.M. – Ryan Franklin, 35, of Albuquerque, was arraigned on Sept. 8 in federal court on a two-count indictment charging him with assaulting a federal officer resulting in bodily injury.
According to the indictment, on Dec. 20, 2020, Franklin allegedly forcibly assaulted, resisted, opposed, impeded, intimidated and interfered with two Isleta Pueblo Police Officers while the officers were engaged in official duties in Bernalillo County, New Mexico. Both officers are considered federal officers by virtue of special law enforcement commissions issued by the Bureau of Indian Affairs. Franklin’s alleged assault resulted in bodily injury to both officers.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Franklin faces up to 20 years in prison.
The Bureau Indian Affairs investigated this case. Assistant U.S. Attorney Alexander F. Flores is prosecuting the case.
ATV driver found guilty of assaulting member of San Ildefonso Pueblo in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Following a five-day trial, a federal jury returned a guilty verdict on Sept. 17 against Julian Lucas Garcia III, 33, of El Guique, New Mexico, on one count of assault resulting in serious bodily injury, one count of operating an off-highway vehicle while under the influence of intoxicating liquor or drugs resulting in bodily injury, and one count of operating an off-highway vehicle on a paved road resulting in bodily injury. Garcia will remain in custody pending sentencing, which is scheduled for Jan. 18, 2022.
The jury heard evidence and testimony that on July 4, 2019, on the Ohkay Owingeh Pueblo, Garcia, a non-Indian, was recklessly driving an ATV without headlights in dark conditions through an area crowded with people waiting to watch a Fourth of July fireworks celebration at the Ohkay Owingeh Casino. Jane Doe, an enrolled member of the San Ildefonso Pueblo, was parked with hundreds of other onlookers on the shoulders of a road south of the casino.
After dark and immediately before the fireworks began, Jane Doe was crossing the two-lane, paved road when Garcia revved his engine and accelerated. Garcia struck Jane Doe, throwing her into the air and 69 feet down the road. As a result of the impact, Jane Doe was seriously injured and suffered traumatic brain injury, broken ribs, and a knee injury requiring a skin graft. Jane Doe was initially transported to Presbyterian Española Hospital, then immediately flown to the University of New Mexico Hospital’s Trauma Center for life-saving treatment. The injuries required months of treatment in intensive care and multiple surgeries. Jane Doe remains wheelchair-bound, suffers from short- and long-term memory loss, and is unable to perform day-to-day functions to care for herself.
Witnesses, including responding law enforcement, emergency medical personnel and hospital staff testified that Garcia smelled and appeared intoxicated. During questioning by law enforcement, Garcia refused his consent to provide a blood alcohol sample.
Garcia faces a maximum of 10 years in prison for the assault resulting in serious bodily injury conviction and up to 364 days for each count relating to the operation of an off-highway vehicle.
The Northern Pueblos Agency of the Bureau of Indian Affairs, the Office of Justice Services, the Ohkay Owingeh Tribal Police Department, and the New Mexico State Police investigated the case. Assistant U.S. Attorneys Alexander F. Flores and Kyle T. Nayback are prosecuting the case.
20 September 2021
Woman Pleads Guilty to $77,000 FEMA Fraud in Connection with the Paradise Camp FireRead the Press Release
SACRAMENTO, Calif. — Deborah Laughlin, 64, formerly of Paradise, pleaded guilty today to making false statements in an application for FEMA benefits in connection with the 2018 Paradise Camp Fire, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, FEMA provided disaster benefits to certain qualified individuals whose primary residence was damaged or destroyed in the Camp Fire. On Nov. 15, 2018, Laughlin falsely claimed 7209 Skyway in Paradise as her primary residence at the time of the Camp Fire. In fact, at the time of the Camp Fire, other individuals were renting and residing in the mobile home located at this address. Based on her false statement, she received $7,886 to replace essential items damaged by the disaster and $1,788 for two months of rental assistance. In addition, Laughlin received temporary housing from FEMA in a manufactured home from June 24, 2019, until April 7, 2021. The money and housing Laughlin received caused an actual loss to the United States of at least $77,249.
This case is the product of an investigation by the Department of Homeland Security Office of the Inspector General with assistance from the Federal Bureau of Investigation. Assistant U.S. Attorney Shelley D. Weger is prosecuting the case.
Laughlin is scheduled to be sentenced by U.S. District Judge William B. Shubb on Dec. 20, 2021. Laughlin faces a maximum statutory penalty of 30 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Members of the public who suspect fraud involving disaster relief efforts, including California wildfires or COVID-19 relief efforts, or who believe they have been a victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. Alternatively, information can be submitted via email to [email protected].
Waterloo Drug User in Possession of Loaded Firearm Sentenced to Federal PrisonRead the Press Release
A drug user who possessed a loaded .40 caliber pistol was sentenced today to two years in federal prison.
Shuntez Porter, age 23, from Waterloo, Iowa, received the prison term after a March 15, 2021 guilty plea to possession of a firearm by a drug user.
In a plea agreement, Porter admitted he was a passenger in a car stopped in Waterloo on August 1, 2020. Police searched the car and found a pistol inside the glovebox. The car had an odor of burnt marijuana and small pieces of marijuana were found around the passenger seat. Porter’s urine was positive for marijuana metabolites. A DNA test comparing swabs taken from the firearm to Porter’s DNA, showed there was strong support that the DNA from the gun was Porter’s DNA.
Porter was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Porter was sentenced to 24 months’ imprisonment and fined $100. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Porter is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Elizabeth Dupuich and investigated by the Waterloo Police Department and the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-2004.
Follow us on Twitter @USAO_NDIA.
Virginia Beach Investment Advisor and Williamsburg Attorney Sentenced for $25 Million Nationwide Investment Fraud SchemeRead the Press Release
NORFOLK, Va. – A former Virginia Beach investment advisor was sentenced today to 35 years in prison, following last week’s sentencing of his Williamsburg-based attorney to 10 years in prison, for their roles in a nationwide investment fraud scheme that resulted in over $25 million in losses to more than 300 victims, most of whom were elderly.
“These defendants and their co-conspirators are responsible for orchestrating an extraordinarily serious nationwide scheme to defraud hundreds of investors out of over $25 million,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Driven by their voracious greed, the defendants preyed on the elderly and exploited the trust of vulnerable victims by robbing them of their hard-earned retirement funds and lifelong savings meant for their families. The financial harm that they caused to each victim is heartbreaking, and the emotional harm they inflicted is incalculable. The sentences imposed in this case reflect the enormous scale and scope of this securities fraud scheme and send a strong message that those who commit these devastating financial crimes will face significant consequences in our courts.”
According to court documents, Daryl Bank, 51, of Port St. Lucie, Florida, ran an investment fraud scheme from approximately January 2012 through July 2017, based in the Tidewater area and Port St. Lucie, and operating across the country. Bank and his co-conspirators—including his attorney, Billy Seabolt, 56, of Williamsburg; corporate executive Raeann Gibson, 49, of Florida; and salesman Roger Hudspeth, 52, of Chesapeake—deceived hundreds of unsuspecting investors, most of whom were at or near retirement age, by fraudulently convincing them to invest in companies owned and controlled by Bank. At Bank’s direction, co-conspirators stole significant portions of investment contributions to fund their criminal enterprise and Bank’s lavish lifestyle.
“Darryl Bank and Billy Seabolt, along with their co-conspirators, robbed hundreds of elderly victims of their life savings and ruined the financial security many had worked for all their lives. Their actions caused needless hardships and were taken with cruel indifference to the long-lasting impact on their victims,” said Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office. “Because of the devastating impact elder fraud schemes have on victims, the FBI is committed to stopping criminals who prey on the elderly. If you or a family member has been victimized, please contact the FBI at 1-800-CALL-FBI, or tips.fbi.gov.”
“Bank, Seabolt, and others caused significant financial ruin to hundreds of innocent people by tricking the victims into entrusting them with their retirement funds, under the guise of a promising investment opportunity,” said Darrell J. Waldon, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI) Washington DC Field Office. “While it cannot erase the hardships which these victims endured due to this scheme, we hope today’s sentencing brings some closure to this horrific time in their lives.”
“Those who engage in deceptive securities practices needs to know they will not go undetected and will be held accountable,” said Daniel A. Adame, Inspector in Charge of the Washington Division, of the U.S. Postal Inspection Service. “Postal Inspectors have been investigating financial crimes like the ones alleged here for many years. Our duty is to protect investors from those who misuse the U.S. Mail and protect the integrity of our mail system.”
In 2010, Bank, then a registered securities broker, was barred from the securities industry by the Financial Industry Regulatory Authority. Undeterred, Bank created an investment company called Dominion Private Client Group (Dominion) and continued to sell unregistered securities on his own and through insurance salesmen across the country. Seabolt, whose legal practice was otherwise focused on elder and trust law, served as Dominion’s legal counsel and was involved in negotiating and developing many of the fraudulent investments and corporations.
The conspirators made material misrepresentations and omissions to sell illiquid, highly speculative investment vehicles. Based on these fraudulent representations, unsuspecting investors cashed out of 401(k) and other retirement accounts to invest in Bank’s investments, without knowing that Bank immediately transferred 20%–70% of the investors’ funds to other companies that he controlled in the form of purported “fees,” much of which he ultimately spent on luxury and designer goods. As a result of this investment fraud scheme, the victims suffered losses in excess of $25 million.
Bank, who was convicted on all 27 counts submitted to the jury, was sentenced today to 35 years in prison for conspiracy, mail and wire fraud, selling unregistered securities, securities fraud, and money laundering. Seabolt was sentenced on September 15 to 10 years in prison on multiple conspiracy, mail fraud, and sale of unregistered securities charges.
Gibson pleaded guilty to conspiracy and was sentenced to 10 years in prison in February 2020. Hudspeth pleaded guilty to investment advisor fraud and money laundering, and was sentenced to over 12 years in prison in May 2018.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; Darrell J. Waldon, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-CI; and Daniel A. Adame, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson.
The U.S. Attorney’s Office for the Eastern District of Virginia extends its appreciation to the Virginia State Corporation Commission’s Division of Securities for its valuable assistance.
Assistant U.S. Attorneys Melissa E. O’Boyle, Elizabeth M. Yusi, and Andrew Bosse prosecuted the case.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. Elder abuse is an intentional or negligent act by any person that causes harm or a serious risk of harm to an older adult. It is a term used to describe five subtypes of elder abuse: physical abuse, financial fraud, scams and exploitation, caregiver neglect and abandonment, psychological abuse, and sexual abuse. Elder abuse is a serious crime against some of our nation’s most vulnerable citizens, affecting at least 10 percent of older Americans every year. Together with our federal, state, local, and tribal partners, the Department of Justice is steadfastly committed to combatting all forms of elder abuse and financial exploitation through enforcement actions, training and resources, research, victim services, and public awareness. This holistic and robust response demonstrates the Department’s unwavering dedication to fighting for justice for older Americans.
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. 2:17-cr-126.
Valley Woman Sentenced to 21 Years in Prison for Multi-State Drug Trafficking OperationRead the Press Release
FRESNO, Calif. — Alecia Trapps, 58, of Manteca, was sentenced Sept. 17, 2021, by U.S. District Judge Dale A. Drozd to 21 years in prison for conspiracy to distribute and possess with the intent to distribute methamphetamine and heroin, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Trapps was the leader of a drug trafficking organization that was sending multiple pounds of methamphetamine and heroin to Juneau, Alaska, where the profits were much greater. The drugs were sourced in the Modesto area then transported to Alaska at Trapps’ direction utilizing numerous couriers as well as various methods and modes of transportation. In at least one instance, drugs from Modesto destined for Juneau were seized in Washington state as the courier tried to board the ferry.
This case was the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Modesto Police Department, the California Highway Patrol, and the Whatcom County (Washington) Sheriff’s Office. Assistant U.S. Attorneys Melanie L. Alsworth and Laurel J. Montoya prosecuted the case.
Trapps is the last defendant to be sentenced in this case. Co-defendants were sentenced as follows: Jimmy Brantley was sentenced to 10 years in prison, Carmen Conejo was sentenced to five years of probation, Ernest Westley was sentenced to two years and eight months in prison, Sheena Taylor was sentenced to 10 years, three months in prison, and Joseph Vasquez Jr. was sentenced to 26 years, eight months in prison.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Uniontown, PA Felon Who Accidentally Shot Himself Pleads Guilty to Illegally Possessing a Gun and Ammunition in Violation of Federal LawRead the Press Release
PITTSBURGH, Pa. – A resident of Uniontown, Pennsylvania, pleaded guilty in federal court to a charge of possession of a firearm and ammunition by a convicted felon, Acting United States Attorney Stephen R. Kaufman announced today.
Juan Washington, 44, pleaded guilty to one count before United States District Judge J. Nicholas Ranjan.
In connection with the guilty plea, the court was advised that, Washington left a bar in Uniontown after midnight on December 30, 2019, and then he accidentally shot himself in the leg outside a nearby Family Dollar Store. Washington then limped across the street where he placed the gun and magazine on the retaining wall next to the sidewalk in front of a private home. Washington then limped back across the street to the sidewalk in front of the bar where he called for help. He initially claimed that robbers shot him, that he took the gun, and that he fired back. But he later admitted that he shot himself by accident. Police traced the trail of blood from the front of the bar to the retaining wall where they found the gun and then to the Family Dollar where they found a spent shell. The same brand and caliber of ammunition was in Washington’s pocket, the gun, and the magazine, as well as the spent shell casing outside the Family Dollar. Additionally, Washington’s DNA was the only DNA found inside the gun barrel, gun muzzle, and spent casing and was the majority component of DNA found on portions of the gun, magazine, and live rounds. Washington has multiple prior felony convictions for receiving stolen property in 2006 and drug trafficking in 1999.
Judge Ranjan scheduled sentencing for January 31, 2022 at 11:00 am. The law provides for a maximum total sentence of ten years in prison, a fine up to $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the Court continued Washington’s release on $10,000 unsecured bond.
Assistant United States Attorney Ira M. Karoll is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Uniontown City Police Department conducted the investigation leading to the Indictment in this case. This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney’s Office, FBI examining Screven County deathRead the Press Release
SAVANNAH, GA: The Southern District of Georgia U.S. Attorney’s Office is in consultation with the FBI regarding the circumstances of the Aug. 7, 2020, death of Julian Lewis of Screven County, Ga.
In accordance with U.S. Department of Justice policy, no further information regarding the matter will be publicly disclosed unless or until a determination is made to pursue federal prosecution.
U.K. citizen sentenced for trafficking firearmsRead the Press Release
ATLANTA – Jahziah Roy Lewis has been sentenced for conspiring to straw purchase firearms, possession of a firearm with an obliterated serial number, exporting firearms outside the United States, and possession with intent to distribute marijuana.
“Lewis directed the straw purchase of the guns, had their serial numbers obliterated, and then smuggled them in household items with the intent of selling them abroad,” said Acting U.S. Attorney Kurt R. Erskine. “Our federal and international law enforcement partners were able to intercept some of the shipments before they were used in a crime. We will continue to aggressively prosecute those who buy firearms for others and unlawfully export them for illicit purposes.”
“The unlawful acquisition and trafficking of firearms is a serious crime that threatens our communities here and abroad," said Special Agent in Charge, Atlanta Field Division Ben Gibbons. “Obliterated firearms are hard to trace and that is what prohibited individuals are interested in. This investigation illustrates the dedication of ATF and its’ law enforcement partners to disrupt illegal firearm straw purchase schemes within the U.S. or anywhere firearm traffickers, like Lewis, choose to operate.”
“Firearms illegally exported from the United States to the Caribbean fuels violent crime, which directly impacts regional stability and U.S. national security interests,” said Ariel Joshua Leinwand, Special Agent in Charge of the Bureau of Industry and Security’s (BIS), Office of Export Enforcement, who oversees BIS investigations in the Southeast. “This significant sentence should act a deterrent to those seeking to violate U.S. export and firearms laws. BIS and our law enforcement partners will continue to aggressively enforce export violations to combat illegal firearm exports.”
“Stopping the flow of illegal weapons prevents the spread of violence and crime in communities abroad,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI is committed to preventing the spread of illegal goods and works with its law enforcement partners to bring to justice those violators.”
“The diversion of firearms to individuals who cannot legally possess them contributes to the cycle of gun violence that pose a direct threat to the safety and stability of various communities,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “Postal Inspectors will continue to aggressively investigate and hold those accountable who maliciously utilize the U.S. mail system.”
According to Acting U.S. Attorney Erskine, the charges and other information presented in court: Between February 18, 2017, and May 14, 2020, Jahziah Roy Lewis, a citizen of the United Kingdom, and two accomplices, were involved in an international weapons trafficking conspiracy to purchase and illegally export approximately thirty-six firearms and drugs from the United States to the United Kingdom and the Caribbean via the U.S. Postal Service. Multiple firearms purchased in Georgia have been recovered in United Kingdom and St. Kitts are tied to various criminal networks abroad.
At the time of each purchase, Lewis’s co-conspirators completed paperwork in which they falsely claimed to be the actual buyers of the firearms when they knew that they were buying the guns for someone else (Lewis). Lewis then directed his accomplice to obliterate the serial numbers on the firearms. After the firearms were purchased, Lewis would sell the firearms abroad by directing his accomplices to conceal the firearms in everyday household items and export them abroad using false names on shipping labels.
On October 1, 2020, the same day the Indictment against Lewis’ co-defendants was unsealed, Lewis obtained an outbound ticket for a flight from the United States to the United Kingdom. Local law enforcement, however, intercepted Lewis at the Miami International Airport and arrested him on a criminal complaint before he was able to board his flight.
Jahziah Roy Lewis, 30, of Saint Kitts and Nevis, was sentenced by U.S. District Court Judge Thomas W. Thrash to four years, nine months, to be followed by three years of supervised release.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bureau of Industry and Security, the Department of Homeland Security, the U.S. Postal Inspection Service, and the United Kingdom National Crime Agency led the investigation in this case.
Assistant U.S. Attorney Dash A. Cooper is prosecuting the case.
This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Two Camden Men Charged with Armed Robbery of Gas StationRead the Press Release
CAMDEN, N.J. – Two Camden men have been charged for their roles in robbing a gas station in Camden County, Acting U.S. Attorney Rachael A. Honig announced today.
Paul Rogers, 27, and Kamau Bradshaw, 19, are each charged by complaint with one count of Hobbs Act robbery. They appeared by videoconference before U.S. Magistrate Judge Sharon A. King on Sept. 17, 2021, and were detained.
According to documents filed in this case and statements made in court:
On Sept. 14, 2021, a gas station in Pennsauken, New Jersey, was robbed by two masked individuals carrying an AR-style rifle. One of the robbers wore a gray Nike hooded sweatshirt and scuffed tan work boots. The second robber wore a tan hooded sweatshirt with “REACTIVE” printed on the sleeves and striped boxershorts. They obtained cash and cigarettes while brandishing the firearm. Two days later, a robber wearing what appears to be the same grey Nike sweatshirt and brandishing an AR-style rifle obtained several hundred dollars after committing another armed robbery of a gas station in Haddon Township, New Jersey. Shortly after each robbery, two individuals were seen returning to a residence in Camden with a large duffle bag. On Sept. 17, 2021, law enforcement officers executed a federal search warrant at the Camden residence and recovered, among other items, a duffle bag, an AR-style rifle, a grey Nike sweatshirt, scuffed tan work boots, and a tan hooded sweatshirt with “REACTIVE” printed on the sleeves. Rogers and Bradshaw were present when law enforcement agents executed the search warrant, at which time Bradshaw was wearing striped boxershorts consistent with those worn by one of the robbers during the robbery on Sept. 14, 2021.
Each defendant faces a maximum penalty of 20 years in prison and a fine of up to $250,000.
Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Camden Field Office, under the direction of Special Agent in Charge Jeffrey L. Matthews in Newark; the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer; the Cumberland County Prosecutor’s Office, under the direction of Prosecutor Jennifer Webb-McRae; the New Jersey State Police, under the direction of Col. Patrick J. Callahan; the Pennsauken Police Department, under the direction of Acting Police Chief Phil Olivo; the Haddon Township Police Department, under the direction of Chief Mark Cavallo; the Vineland Police Department; the Bridgeton Police Department, under the direction of Chief Michael A. Gaimari Sr.; and the Brooklawn Police Department, under the direction of Chief Shamus Ellis, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.
The charges and allegations contained in the complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Three defendants sentenced for Smyrna’s largest methamphetamine seizure everRead the Press Release
ATLANTA - Alejandro Salazar-Gama, Miguel Salazar-Gama, and Arturo Acevedo have been sentenced for their roles in a drug trafficking conspiracy that involved nearly 40 kilograms of 100 percent pure methamphetamine.
“Methamphetamine trafficking breeds violent crime and threatens our community,” said Acting U.S. Attorney Kurt R. Erskine. “We and our law enforcement partners are working hard to combat the trafficking of methamphetamine into and through the Northern District of Georgia, and we will use every tool available stop it.”
“Methamphetamine poses a clear and present danger to our communities,” said the Special Agent in Charge of the DEA Atlanta Field Division Robert J. Murphy. “Because of the collaborative effort between DEA and its law enforcement partners, citizens of the Smyrna, Georgia community can sleep better at night knowing that these defendants will spend well-deserved time in federal prison.”
“This should be a shot across the bow to criminal elements intent on distributing their poison in our communities. Law enforcement agencies in North Georgia are united and determined in keeping our communities safe,” said Dan Salter, Director of the Atlanta-Carolinas High Intensity Drug Trafficking Area (HIDTA).
According to Acting U.S. Attorney Erskine, the charges and other information presented in court: On April 10, 2019, an undercover agent with the Drug Enforcement Administration’s Atlanta-Carolinas High-Intensity Drug Trafficking Area program arranged via telephone to purchase 40 kilograms of methamphetamine at a business in Smyrna, Georgia.
At the time and place of the arranged meeting, defendant Alejandro Salazar-Gama met the undercover agent and agreed to bring the drugs to the parking lot to show the undercover agent before selling the drugs to the agent. Alejandro Salazar-Gama left the parking lot and returned about 40 minutes later. Shortly afterwards, a van arrived driven by defendant Arturo Acevedo with defendant Miguel Salazar-Gama as a passenger.
When the undercover agent went inside the van, he/she opened one of the boxes located inside the van and saw that the box contained methamphetamine. At that time, the City of Smyrna Police Department SWAT team surrounded the three defendants and arrested them. In total, the drugs weighed more than 39 kilograms and subsequently tested positive for methamphetamine at 100 percent purity. Law enforcement officers believe that this is the largest quantity of methamphetamine ever seized in the City of Smyrna.
The three defendants were sentenced by U.S. District Court Judge Thomas W. Thrash Jr., to the following:
- Alejandro Salazar-Gama, 31, of Sandy Springs, Georgia, has been sentenced to 11 years, seven months in prison to be followed by five years of supervised release. Salazar-Gama was sentenced on June 17, 2020, after he pleaded guilty.
- Arturo Acevedo, 22, of Sandy Springs, Georgia, has been sentenced to 14 years in prison to be followed by five years of supervised release. Acevedo was sentenced on September 15, 2021, after he pleaded guilty.
- Miguel Salazar-Gama, 29, of Sandy Springs, Georgia, has been sentenced to three years in prison. Salazar-Gama was sentenced on September 15, 2021, after he pleaded guilty.
This case was investigated by the Drug Enforcement Administration, the Atlanta-Carolinas High Intensity Drug Trafficking Area program, and the City of Smyrna Police Department.
Assistant U.S. Attorney Nicholas N. Joy prosecuted the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Three Maryland Men Facing Federal Indictment for Filing More Than 600 Fraudulent Claims for Unemployment Resulting in Losses of More Than $2.7 MillionRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging three Maryland men on federal charges related to a scheme to fraudulently obtain more than $2.7 million in unemployment benefits. The indictment was returned on August 30, 2021, and unsealed today upon the arrests of the defendants. Charged in the indictment are:
Gladstone Njokem, age 34, of Hyattsville, Maryland; Martin Tabe, age 32, of Bowie, Maryland; and
Sylvester Atekwane, age 31, of Hyattsville.The defendants will have initial appearances today beginning at 1:30 p.m., in U.S. District Court in Baltimore before U.S. Magistrate Judge Beth P. Gesner.
The indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Postal Inspector in Charge Daniel A. Adame of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge Derek Pickle, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General; and Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore.
As detailed in the indictment, in Maryland, Michigan, and Tennessee, individuals who have lost a job can contact the appropriate state agency to submit a claim for unemployment insurance (UI) benefits. Claims for UI benefits in all three states are typically submitted electronically through the use of the Internet or Internet-capable devices. If the former employee meets certain requirements, they become eligible to receive UI benefits. Prior to April 2021, an approved claimant for UI benefits in Maryland received a Prepaid VISA debit card with the claimant’s name on it through the mail. Claimants in Michigan and Tennessee also had the option of having UI benefits deposited to a prepaid debit card. In each state, the appropriate state agency would authorize the electronic application of UI benefits to the debit card and continue to do so on a periodic basis if the claimant continued to qualify for benefits.
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was signed into law on March 27, 2020. It expanded states’ ability to provide UI for many workers impacted by the COVID-19 pandemic, including for workers who are not ordinarily eligible for unemployment benefits. The CARES Act created the Pandemic Unemployment Assistance (“PUA”) program, under which states are permitted to provide PUA to individuals who are self-employed, seeking part-time employment, or otherwise would not qualify for regular UI compensation. The CARES Act also established the Pandemic Emergency Unemployment Compensation (“PEUC”) program, which covers most individuals who have exhausted all rights to regular UI compensation under state or federal law and who are able to work, available for work, and actively seeking work as defined by state law. Finally, the CARES Act also established the Federal Pandemic Unemployment Compensation (“FPUC”) program. From April 4, 2020 through July 31, 2020, FPUC allowed states to give an additional $600 per week to individuals collecting UI compensation. From January 2021 through September 6, 2021, FPUC allowed states to provide an additional $300 per week to individuals collecting UI compensation,.
According to the 13-count indictment, from February 2020 through February 2021, Njokem, Tabe, Atekwane and others conspired to impersonate victims in order to submit fraudulent UI claims. To accomplish this, the defendants obtained the personally identifiable information (PII) of victims, often under false pretenses. For example, Njokem obtained PII from at least one victim by falsely claiming to sell puppies. The defendants allegedly shared the PII amongst themselves and with others and used the victims’ PII to submit fraudulent applications for UI benefits in Maryland, Michigan, and Tennessee.
The indictment alleges that the fraudulent applications contained false representations concerning the victims’ contact information, address, work availability, and that they were newly unemployed. The defendants allegedly used false physical addresses for UI applications, such that any UI benefits that were paid by the state would be received by the defendants, rather than the victims. In some instances, the defendants used their own physical addresses in UI applications to receive the victims’ UI benefits. In other instances, the defendants used the addresses of nearby vacant residences to receive UI applications in an effort to avoid detection by government authorities.
As detailed in the indictment, once the defendants received the fraudulently obtained debit cards, they made cash withdrawals and other transactions throughout Maryland and used the cash for their own benefit and for the benefit of others who also were not entitled to the money.
The indictment alleges that as a result of the conspiracy, Njokem, Tabe, Atekwane, and others caused at least 600 fraudulent UI claims to be submitted in Maryland, Michigan, Tennessee, and at least sixteen other states, resulting more than 2.7 million dollars in actual losses.
If convicted, the defendants face a maximum sentence of 20 years in federal prison for conspiracy to commit wire fraud and for each of the nine counts of wire fraud. The defendants each also face a mandatory sentence of two years in federal prison, consecutive to any other sentence imposed, for aggravated identity theft. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner commended the USPIS, the DOL-OIG, HSI, and the U.S. Department of the Treasury – OIG for their work in the investigation. Mr. Lenzner thanked the Prince George’s County Police Department, the Baltimore Police Department, and the Maryland Department of Labor for their assistance. Mr. Lenzner also thanked Assistant U.S. Attorneys Zachary H. Ray, Sean R. Delaney, and Matthew Maddox, who are prosecuting the federal case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Texas Man Pleads Guilty to Federal Charges for Fraudulently Obtaining over $1.6 Million in Paycheck Protection Program LoansRead the Press Release
A Texas man pleaded guilty today in the Southern District of Texas to fraudulently obtaining more than $1.6 million in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
According to court documents, Lee Price III, 30, of Houston, submitted two fraudulent PPP loan applications to two different lenders on behalf of entities 713 Construction LLC and Price Enterprises Holdings LLC. The 713 Construction LLC PPP loan application was made in the name of an individual who died shortly before the application was submitted. Through these two PPP loan applications, Price sought and obtained over $1.6 million in PPP loan funds.
Price falsely represented the number of employees and payroll expenses in each of the PPP loan applications. To support the fraudulent PPP applications, Price also submitted fraudulent tax records and other materials. After he received the PPP loan funds, Price spent the money on a Lamborghini Urus, a Ford F-350 truck, and a Rolex watch, and to pay off a loan on a residential property, among other purchases.
The Department of Justice, along with law enforcement partners, seized over $700,000 of the disbursed PPP funds in this matter.
Price pleaded guilty to two counts of wire fraud and three counts of money laundering. He is scheduled to be sentenced on Nov. 29 and faces a maximum penalty of 20 years in prison for each count of wire fraud and 10 years in prison for each count of money laundering. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Jennifer Lowery for the Southern District of Texas; Special Agent in Charge Catherine Huber of the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG)–Central Region; Special Agent in Charge Sharon Johnson of the SBA Office of Inspector General (SBA-OIG)–Central Region; and Acting Inspector in Charge Dana Carter of the U.S. Postal Inspection Service – Houston Division made the announcement.
FHFA-OIG, SBA-OIG, and the U.S. Postal Inspection Service–Houston Division investigated the case.
Trial Attorney Andrew Tyler of the Criminal Division’s Fraud Section and Trial Attorneys James Alexander and Matthew Grisier of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case with the assistance of Assistant U.S. Attorney James McAlister of the Southern District of Texas. Assistant Deputy Chief Timothy A. Duree and Trial Attorney Kyle Maurer of the Criminal Division’s Fraud Section assisted in the investigation of the case.
The Fraud Section leads the department’s prosecution of fraud schemes that exploit the PPP. In the months since the PPP began, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
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.
Tampa Man Sentenced to More Than 12 Years in Federal Prison for Conspiracy to Distribute Heroin and FentanylRead the Press Release
Tampa, Florida – U.S. District Judge Thomas P. Barber has sentenced Steven Echevarria (35, Tampa) to 12 years and 6 months in federal prison for conspiracy to distribute heroin and fentanyl.
Echevarria had pleaded guilty on March 18, 2021.
According to court documents, between January 1, 2016, and September 1, 2020, Echevarria conspired with others to distribute heroin and fentanyl in the Middle District of Florida. The conspiracy involved at least one kilogram of heroin. Echevarria obtained heroin from a source in the Orlando area and provided it to co-conspirators to distribute in Hillsborough County. Echevarria was arrested on other charges and incarcerated during the conspiracy. While Echevarria was in custody, a co-conspirator took over his role in the conspiracy and obtained heroin and fentanyl from the source in the Orlando area. After Echevarria was released from jail in July 2020, he resumed working with his co-conspirators and distributed heroin and fentanyl to a confidential source.
The investigation in this case is the result of a partnership between the United States Attorney’s Office, the Federal Bureau of Investigation, Homeland Security Investigations, the Drug Enforcement Administration, the Hillsborough County Sheriff’s Office, the Tampa Police Department, the Hillsborough County Medical Examiner’s Office, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Michael Sinacore.
St. Augustine Registered Sex Offender Indicted for Attempting to Entice A 10-Year-Old Child to Engage in Sex and Distributing Child Sexual Abuse Video over the InternetRead the Press Release
Jacksonville, Florida – Acting United States Attorney Karin Hoppmann announces that a grand jury has returned an indictment charging Christopher Lee Smith (39, St. Augustine) with attempted online enticement of a minor to engage in sex and online distribution of a video depicting the sexual abuse of a child. Smith faces a minimum mandatory penalty 15 years, and up to life, in federal prison, a $500,000 fine, and a potential life term of supervised release. Smith is a registered sex offender, having been convicted of a prior child sex offense in January 2012. Smith was arrested by FBI agents on September 2, 2021, and is in federal custody awaiting his arraignment on September 23, 2021.
According to court documents, on June 28 and August 30, 2021, Smith utilized a particular social media application (app) to engage in online conversations with an undercover federal agent who was posing as the parent of a 10-year-old child. On June 28, 2021, Smith advised the undercover agent that he (Smith) wanted to have sex with the “child” and discussed in detail the sexual acts that he wished to perform on the “child.” On August 30, 2021, Smith and the undercover agent engaged in another online conversation. Smith advised, among other things, that he had engaged in sexual activity with another minor child; Smith also used the internet to send a video to the undercover agent depicting an adult male sexually abusing the minor. FBI agents were subsequently able to identify the child.
This case was investigated by the Federal Bureau of Investigation in Jacksonville and Tampa. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This is another case 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.justice.gov/psc.
Anyone with information regarding this investigation should contact the FBI Jacksonville office at 904-248-7000.
South Florida Man Charged with Defrauding After-School Program for Underprivileged Immigrant Children Appears in Federal CourtRead the Press Release
Miami, Florida – Friday, Miami resident Ramon Caridad Rodriguez, 28, made his first appearance in South Florida federal court to face a grand jury indictment charging him with defrauding his former employer, a religious charity organization that runs after-school programs for underprivileged immigrant children to help them avoid gangs and gang violence.
According to the indictment, Rodriguez abused the company’s trust by using a company credit card to make thousands of dollars’ worth of personal purchases and then attempted to conceal those purchases through lies and altered bank statements. Some of these purchases included items like lawn chairs, bug spray, tiki torches, and personal groceries. He used over $160,000 of the company’s money for his personal gain, says the indictment.
The indictment charges Rodriguez with nine counts of wire fraud. If convicted, Rodriguez faces up to 20 years in federal prison on each charge.
Juan Antonio Gonzalez, Acting United States Attorney for the Southern District of Florida, Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, and Art Acevedo, Chief, City of Miami Police Department made the announcement.
USSS Miami and City of Miami PD investigated the case. Assistant United States Attorney Yara Dodin is prosecuting it.
An indictment contains mere allegations. A defendant is innocent until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 21-cr-20472.
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South Florida Felon Indicted on Robbery and Firearms Offenses After a One-Night Crime SpreeRead the Press Release
Miami, Florida – A grand jury in the Southern District of Florida has returned an indictment charging a South Florida man with crimes related to a one-night crime spree, including armed robbery, carjacking, and discharging a firearm during a crime of violence.
According to court documents, in the early hours of August 18, 2021, Frankie David Vargas, II, 33, robbed a Westar gas station in Miami, Florida. Vargas, who was driving a stolen car, pulled up to the gas station, pointed a firearm at the attendant, and demanded that he open the register. Vargas removed the cash from the till, stole the attendant’s cell phone, and drove off, say the court documents.
It is alleged that after abandoning the stolen car, Vargas broke into an apartment where a mother and son were inside. Vargas held the mother at gunpoint and ransacked the bedrooms, stealing jewelry and electronics. After a struggle for the firearm, the mother hid in a bathroom, and her son woke up and joined her. Vargas fired a shot, and the bullet went through the bathroom door and into the son’s chest, according to the charges. Vargas then took the keys to the son’s Mercedes, stole the car, and fled.
The victims called 911, and the son was taken to Ryder Trauma Center at Jackson Memorial Hospital, where he underwent surgery and was admitted to the intensive care unit.
On August 19, 2021, Vargas was taken into custody by members of the South Florida Violent Crime and Fugitive Task Force (FBI Agents). At the time of his arrest, it is alleged, Vargas had a loaded 9mm handgun in the waistband of his pants. He was also wearing a watch that was identical to the one stolen from the apartment.
Vargas is currently being detained without bond. If convicted, he faces a sentence of up to life in prison.
Juan Antonio Gonzalez, Acting United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI, Miami Field Office made the announcement.
The FBI Miami Field Office, City of Miami Police Department and City of North Miami Police Department investigated the case, which is being prosecuted by Assistant United States Attorney Jonathan Bailyn.
This case stems from Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. In 2017, PSN was reinvigorated 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.
Anyone with information related to a possible violent crime is asked to call Crime Stoppers at 305-471-TIPS.
Criminal complaints and indictments contain mere allegations and defendants are innocent unless and until found guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 21-cr-20479.
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Six Members of Jersey City Gang Charged with Stabbing an Individual in Jersey CityRead the Press Release
NEWARK, N.J. – Six members of a Jersey City gang have been charged with the Aug. 3, 2020, stabbing of an individual on a busy street in Jersey City, Acting U.S. Attorney Rachael A. Honig announced today.
Sheldon Mays, aka “Thottie,” 21, Jermaine Jennings, aka “Maine” and “Drill,” 20, Divine Abraham, aka “Dee,” 21, Jamil Bowens, 20, and Jaylen Boone, 21, all of Jersey City, made their initial appearances before U.S. Magistrate Judge André M. Espinosa today and were detained. Yahsier Brown, 19, of Jersey City, New Jersey, previously made his initial appearance before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court and was detained. They each are charged by complaint with one count of assault with a dangerous weapon in aid of racketeering activity.
According to the documents filed in this case and statements made in court:
Mays, Jennings, Abraham, Bowens, Boone and Brown are allegedly members of a street gang known to operate around the Curries Woods Housing Complex in Jersey City. In retaliation for a prior assault of Mays by Individual-1 and other members of a rival gang, and in furtherance of an ongoing feud amongst the two gangs, the defendants sought out Individual-1, assaulted him, and stabbed him in broad daylight on a busy street in Jersey City. Individual-1 suffered life-threatening injuries.
The count of assault with a dangerous weapon in aid of racketeering activity is punishable by a maximum of 20 years in prison.
Acting U.S. Attorney Honig credited special agents and task force officers of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Division, under the direction of Special Agent in Charge Jeffrey L. Matthews; the Jersey City Police Department, under the direction of Public Safety Director James Shea; the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez; and the Hudson County Department of Corrections with the investigation leading to the charges.
This investigation was conducted as part of the Jersey City Violent Crime Initiative (VCI). The VCI was formed in 2018 by the U.S. Attorney’s Office for the District of New Jersey, the Hudson County Prosecutor’s Office, and the Jersey City Police Department, for the sole purpose of combatting violent crime in and around Jersey City. As part of this partnership, federal, state, county, and city agencies collaborate to strategize and prioritize the prosecution of violent offenders who endanger the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration’s (DEA) New Jersey Division, the U.S. Marshals, the Jersey City Police Department, the Hudson County Prosecutor’s Office, the Hudson County Sheriff’s Office, New Jersey State Parole Board, the Hudson County Jail, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center.
The government is represented by Assistant U.S. Attorneys Tracey Agnew and DeNae Thomas in the Criminal Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Sioux Falls Man Sentenced for Methamphetamine Trafficking ConspiracyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Sioux Falls, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on September 14, 2021, by U.S. District Judge Karen E. Schreier.
Christopher Charles Walker, age 50, was sentenced to 240 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Walker was indicted by a federal grand jury on January 12, 2021. He pled guilty on June 24, 2021.
The conviction stemmed from incidents beginning on an unknown date and continuing until on or about May 25, 2020, when Walker knowingly and intentionally combined, conspired, confederated, agreed with others to distribute 500 grams or more of a mixture or substance of methamphetamine, which is a Schedule II controlled substance.
At the time Walker voluntarily joined in the agreement, he knew the purpose of said agreement. Walker distributed over 500 grams of methamphetamine to co-conspirators who, in turn, redistributed it to their drug customers in South Dakota.
This case was investigated by the South Dakota Division of Criminal Investigations, the Minnehaha County Sheriff’s Office, and Homeland Security Investigations. Special Assistant U.S. Attorney Tamara Nash prosecuted the case.
Walker was immediately turned over to the custody of the U.S. Marshals Service.