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20 September 2021
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 13, 2021, by U.S. District Judge Karen E. Schreier.
Daniel Michael Thaler, age 37, was sentenced to 158 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.
Thaler was indicted by a federal grand jury on January 12, 2021. He pled guilty on June 21, 2021.
The conviction stemmed from incidents beginning at an unknown date and continuing until on or about January 12, 2021, when Thaler knowingly and intentionally combined, conspired, confederated, agreed with others to distribute 500 grams or more of a mixture or substance containing methamphetamine, which is a Schedule II controlled substance.
At the time Thaler voluntarily joined in the agreement, he knew the purpose of said agreement. Thaler obtained over 500 grams of methamphetamine from a co-conspirator and redistributed it to drug customers in South Dakota.
This case was investigated by the Sioux Falls, Area Drug Task Force and the U.S. Drug Enforcement Administration. Special Assistant U.S. Attorney Mark Hodges prosecuted the case.
Thaler was immediately turned over to the custody of the U.S. Marshals Service.
Sioux Falls Man Charged with Production of Child Pornography and Receipt and Distribution of Child PornographyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Production of Child Pornography and Receipt and Distribution of Child Pornography.
Jeremy James Konda, age 49, was indicted on September 9, 2021. He appeared before U.S. Magistrate Judge Veronica L. Duffy on September 14, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 30 years in federal prison and/or a $250,000 fine, life of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
Count one of the Indictment alleges that on or about between May 27, 2020, and July 26, 2020, Konda knowingly employed, used, persuaded, induced, enticed, and coerced a minor to engage in sexually explicit conduct for the purpose of producing visual depictions, knowing such depictions would be transported in interstate or foreign commerce or mailed, and such visual depictions would be produced by any means, including by computer.
Count two of the Indictment alleges that on or about between February 2, 2021, and May 1, 2021, Konda knowingly received and attempted to receive, any child pornography that had been mailed, shipped, and transported in or affecting interstate of foreign commerce by any means, including by computer.
The charges are merely accusations and Konda is presumed innocent until and unless proven guilty.
The investigation is being conducted by Homeland Security Investigations. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Konda was released on bond pending trial. A trial date has not been set.
Sioux Falls Man Charged with Child Pornography ChargesRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Receipt and Distribution of Child Pornography and Attempted Production of Child Pornography.
Tyson Thill, age 43, was indicted on September 9, 2021. He appeared before U.S. Magistrate Judge Veronica L. Duffy on September 14, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 30 years in federal prison and/or a $250,000 fine, life of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
Count one of the Indictment alleges that between on or about February 12, 2021, and July 28, 2021, Thill knowingly received, and attempted to receive, child pornography that had been mailed, shipped, and transported in or affecting interstate or foreign commerce by any mean, including by computer.
Count two of the Indictment alleges that between on or about February 8, 2019, and July 28, 2021, Thill knowingly attempted to employ, use, persuade, induce, entice, and coerce a minor to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct, knowing such visual depictions would be transported in interstate or foreign commerce or mailed, shipped, and transported by computer.
The charges are merely accusations and Thill is presumed innocent until and unless proven guilty.
The investigation is being conducted by Homeland Security Investigations. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Thill was released on bond pending trial, which has been set for November 23, 2021.
Sioux City Woman Sentenced to Federal Prison for COVID-19 Related Unemployment FraudRead the Press Release
A Sioux City woman who stole government funds using a COVID-19 unemployment scheme was sentenced September 16, 2021, to 6 months in federal prison.
Linda Bosquez, age 59, from Sioux City, Iowa, received the prison term after a guilty plea to theft of government funds. In a plea agreement, Bosquez admitted that from April 30, 2020 through July 22, 2020, she stole at least $24,235 from the United States Department of the Treasury and the states of Georgia, Michigan, and Ohio.
Bosquez falsely filed claims, in her name and those of others, for unemployment benefits, through the States of Arizona, Georgia, Michigan, Colorado, and Ohio, including benefits related to COVID-19 relief funds to which she was not entitled. Bosquez made cash withdrawals following the deposits of Unemployment Insurance credits into her account, totaling approximately $27,299.30. Bosquez was receiving benefits from other states via ACH and prepaid cards in the names of other individuals, while she was also receiving Social Security Disability Insurance benefits. Bosquez has three prior theft convictions and two prior convictions for fraudulent practice.
The case was prosecuted by United States Attorney Ron Timmons and was investigated by the United States Department of Labor and the Office of Inspector General and the Federal Bureau of Investigation.
Rooting out COVID-19 fraud is a priority of the Department of Justice. On March 27, 2020, the President signed the CARES Act, which provides emergency assistance to individuals, families, and businesses affected by the COVID-19 pandemic, including increased unemployment benefits.
These prosecutions are an example of the Department of Justice’s strong commitment to combating fraud and criminal activity related to the COVID-19 pandemic. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Bosquez was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Bosquez was sentenced to 6 months’ imprisonment. She was ordered to make $24,235 in restitution in various amounts to the Georgia Department of Labor, the State of Michigan Unemployment Insurance Agency, and the Ohio Department of Job & Family Services. She must also serve a 2-year term of supervised release after the prison term. There is no parole in the federal system.
Bosquez is to surrender to the Bureau of Prisons on a date yet to be set.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-4029.
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Political Operatives Indicted for Alleged Scheme Involving Illegal Campaign Contribution to 2016 Presidential CampaignRead the Press Release
An indictment was unsealed today in the District of Columbia charging a Kentucky man and a Florida man both with conspiracy to solicit and cause an illegal campaign contribution by a foreign national, effect a conduit contribution and cause false records to be filed with the Federal Election Commission (FEC) and related substantive offenses.
According to court documents, Jesse R. Benton, 43, of Louisville, Kentucky, who previously worked as a campaign manager for two campaigns for U.S. Senate and one campaign for president, and Roy Douglas “Doug” Wead, 75, of Bonita Springs, Florida, who previously served as an advisor to multiple presidential campaigns, conspired together to solicit a political contribution from a Russian foreign national (Foreign National 1). As described in the indictment, Wead conveyed to Foreign National 1 that he could meet Political Candidate 1, a candidate for president during the 2016 election cycle, in exchange for a payment. Shortly after Foreign National 1 committed to transfer the funds, Benton reached out to individuals at Political Committee B, the national party committee for Political Candidate 1’s political party. He then arranged for Foreign National 1 to attend a political fundraising event and get a photograph with Political Candidate 1, in exchange for a political contribution to Political Committee C, a joint fundraising committee comprised of the campaign committee for Political Candidate 1, Political Committee B, and related state committees. Foreign National 1 ultimately wired $100,000 to Company A, a political consulting firm owned by Benton. To disguise the true purpose of the transfer of funds, Wead and Benton created a fake invoice for “consulting services” and invented a cover story.
Wead and Foreign National 1 attended the political fundraising event for Political Candidate 1 on Sept. 22, 2016. Foreign National 2, who worked as a Russian/English translator for Wead, also attended. All three individuals had photographs taken at the event with Political Candidate 1. Following the event, Benton repeatedly represented to a consultant working for Political Committee B and Political Committee C that he had already sent the promised contribution for the event, but in actuality he delayed sending the contribution. Benton ultimately filled out a contributor form, indicated that he was the contributor, and used a personal credit card to make a $25,000 contribution. Benton retained the remaining $75,000 of Foreign National 1’s money. Because Benton falsely claimed to have given the contribution himself, three different political committees unwittingly filed reports with the FEC that inaccurately reported Benton, rather than Foreign National 1, as the source of the funds.
Benton and Wead are both charged with one count of conspiracy to solicit and cause an illegal campaign contribution by a foreign national, effect a conduit contribution, and cause false records to be filed with the FEC, one count of contribution by a foreign national, one count of contribution in the name of another and three counts of making false entries in an official record. The defendants made their initial court appearance today before U.S. Magistrate Judge Zia Faruqui of the U.S. District Court for the District of Columbia. If convicted, Benton and Wead face a range of maximum penalties from five to 20 years in prison, per count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI’s San Diego Field Office is investigating the case.
Trial Attorneys Rebecca G. Ross and Michelle K. Parikh of the Justice Department’s Public Integrity Section and Special Assistant U.S. Attorney Michelle L. Wasserman of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Owner of Jacksonville Tax Preparation Business Sentenced to Federal Prison for Tax FraudRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Paul Berkins Moise to 35 months in federal prison for aiding and assisting others with the filing of fraudulent tax returns and for filing fraudulent tax returns on his own behalf. He was also ordered to pay restitution to the United States for a tax loss of $77,929.
Moise was found guilty on April 29, 2021, after a jury trial.
According to testimony and evidence presented at trial, Moise owned and operated a tax preparation business in Jacksonville. Between February 2013 and March 2017, Moise defrauded the IRS by filing returns for his clients in which he grossly inflated deductions for state and local sales taxes, unreimbursed employee expenses, and gifts to charity by cash or check.
For example, on one tax return, Moise claimed a sales tax deduction of $5,883 for a client who had a gross income of $43,476. In order for that client to claim a sales tax deduction that large, the client would have had to have made taxable purchases totaling $89,926 (including the tax) – or more than twice the client’s claimed gross income.
Trial evidence also showed that Moise grossly underreported his own income on tax returns he filed for himself for the years 2013, 2014, and 2015. On his 2013 return, Moise reported $10,160 in income when he had actually earned at least $83,848 that year. On his 2014 return, Moise reported $2,695 in income when he had actually earned $252,652 that year. On his 2015 return, Moise reported $10,255 in income when he had actually earned $234,936 that year.
“Moise ran a tax preparation business that filed fraudulent returns on behalf of his clients grossly inflating deductions and gifts to charity, while at the same time, significantly under reporting his own income,” said IRS Criminal Investigation Tampa Field Office Special Agent in Charge Brian Payne. “He cheated all Americans, since we all pay our fair share for the government services and protections that we enjoy. Now he will pay the price in prison.”
This case was investigated by the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Operation False Haven: Convicted Child Molester Sentenced for Naturalization Fraud and Judicially DenaturalizedRead the Press Release
RALEIGH, N.C. – The United States Attorney’s Office for the Eastern District of North Carolina announced that today in federal court, Simbala Gory, 45, a naturalized citizen of the United States, born in Mali and residing in Guilford County, was sentenced by Chief United States District Judge Richard E. Myers, II to three years’ probation and six months’ home detention following a guilty plea to naturalization fraud. Moreover, Gory was judicially denaturalized as a United States citizen.
According to court records, on July 26, 2016, Gory fraudulently obtained U.S. citizenship by making materially false statements under oath regarding his naturalization application. In response to the question “Have you ever committed, assisted in committing, or attempted to commit, a crime or offense for which you were not arrested?” he answered “No.” Also, in response to the question “Were you ever involved in any way with any of the following - Forcing, or trying to force, someone to have any kind of sexual contact or relations?” he answered “No.” At the time of his guilty plea to naturalization fraud, Gory admitted the response to the first question was false, but maintained the answer to the second question was not false.
On September 28, 2020, in the Superior Court of North Carolina in Guilford County, Gory was convicted of sex offense-parental role. Gory was sentenced to a term of imprisonment of between 20 and 84 months and ordered to register as a sex offender. According to court records, Gory committed the offense on June 1, 2009. Gory’s crime resulted in the birth of a child. Gory was not arrested until after he naturalized, thus immigration officials were unaware of his crime.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina likewise noted, “Those engaged in such criminal conduct, or considering doing so, would do well to realize that our office is committed to pursuing these acts for prosecution, even if their conduct does not come to light until well after the crime. They should forever be worried their actions will catch up to them.”
“Gory attempted to hide his despicable crimes in order to gain citizenship and now his past has caught up to him,” said Special Agent in Charge Ronnie Martinez, who oversees Homeland Security Investigations (HSI) operations in North Carolina and South Carolina. “Removing predators that target our vulnerable children makes our communities safer and HSI will continue to search for these criminals and bring them to justice.”
Agents with ICE’s Enforcement and Removal Operations and Homeland Security Investigations, assigned to the Document Benefit Fraud Task Force, investigated the case as part of Operation False Haven, an ongoing initiative to identify and prosecute child molesters and other egregious felons who fraudulently obtained U.S. citizenship.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-cr-00503-1M(1).
Ohio woman sentenced for role in drug trafficking operationRead the Press Release
WHEELING, WEST VIRGINIA – Brookelyn Myers, of Bellaire, Ohio, was sentenced today to 12 months of incarceration for her role in a drug trafficking conspiracy, Acting U.S. Attorney Randolph J. Bernard announced.
Myers, also known as “Brooke,” age 25, pled guilty in February 2021 to one count of “Distribution of Heroin and Fentanyl.” Myers admitted to selling a mixture of heroin and fentanyl in December 2019 in Ohio County.
Assistant U.S. Attorneys Shawn M. Adkins and Clayton J. Reid prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crimes Task Force, a HIDTA-funded initiative, which includes the Drug Enforcement Administration, West Virginia State Police, Ohio County Sheriff’s Office, and the Wheeling Police Department, investigated. The U.S. Marshal Service, Columbus Police Department Gang Crimes Unit, the Martins Ferry Police Department, and the Bellaire Police Department also assisted.
U.S. District Judge John Preston Bailey presided.
Original case indictment here: https://www.justice.gov/usao-ndwv/pr/26-charged-drug-conspiracy-involving-heroin-fentanyl-crack-cocaine-and-meth-wheeling
U.S. District Judge John Preston Bailey presided.
Ohio Man Sentenced to Prison on Heroin ChargeRead the Press Release
HUNTINGTON, W.Va. – Jacob Benjamin Loper, 20, was sentenced to 18 months in federal prison for possession with intent to distribute heroin.
According to court documents and statements made in court, law enforcement officers executed search warrants on June 12, 2019 at residences on 26th and 27th Streets in Huntington pursuant to a shooting investigation. Officers located Loper, a baggie of 7.9 grams of heroin and digital scales inside a 26th Street residence. In a Mirandized interview, Loper admitted that he possessed the heroin.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative efforts of the Huntington Violent Crime and Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Ryan A. Keefe handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:20-cr-00106.
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Ohio County woman sentenced for fentanyl distributionRead the Press Release
WHEELING, WEST VIRGINIA – Paula Blake, of Wheeling, West Virginia, was sentenced today to 18 months of incarceration for drug distribution, Acting U.S. Attorney Randolph J. Bernard announced.
Blake, age 45, pled guilty in February 2020 to one count of “Conspiracy to Distribute and Possess with the Intent to Distribute Controlled Substances” and one count of “Distribution of Fentanyl within 1000 feet of a Protected Location.” Blake admitted to working with others to distribute cocaine base or “crack,” heroin, and fentanyl from September 2018 to June 2019 in Ohio County and elsewhere. She also admitted to selling fentanyl near Luau Manor in June 2019.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Ohio Valley Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.
Ohio County man sentenced for a drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Mark Joseph Dobrzynski, of Valley Grove, West Virginia, was sentenced today to 31 months of incarceration for a drug charge, Acting U.S. Attorney Randolph J. Bernard announced.
Dobrzynski, 59, pleaded guilty in June 2021 to one count of “Possession with Intent to Distribute Methamphetamine.” Dobrzynski admitted to having methamphetamine in November 2020 in Ohio County.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.
North Carolina Couple Convicted in Employment and Income Tax SchemeRead the Press Release
A federal jury sitting in Greensboro, North Carolina, convicted a North Carolina couple of conspiring to defraud the IRS and other federal employment tax and income tax violations.
According to court documents and evidence presented at trial, from 1992 through the present, James Rice was an orthopedic surgeon who owned and operated Sandhills Orthopaedic, a medical practice located in Pinehurst, North Carolina. His wife, Susan Rice, worked at Sandhills Orthopaedic and handled the administrative operations. Susan Rice also owned and operated a truffle business.
Between 2007 and 2016, the Rices conspired to defraud the United States with respect to Sandhills Orthopaedic’s employment taxes and their individual income taxes. The Rices withheld nearly $580,000 in Social Security and other tax withholdings from Sandhills Orthopaedic’s employees’ wages, but rather than pay the withheld taxes to the IRS, used the withheld taxes to fund personal expenditures. The Rices also did not file individual tax returns for the 2014 through 2016 tax years despite being required to do so by law.
To conceal their income, the Rices transferred funds from Sandhills Orthopaedic’s bank accounts to other accounts that they controlled, such as those for Susan Rice’s truffle business. The Rices also used their business bank accounts to fund personnel expenditures, including a country-club membership, dog kennel boarding and rent for their personal residence. In total, from June 2013 through December 2016, the Rices diverted at least $1 million in cash and check co-payments to Sandhills Orthopaedic directly into their personal bank accounts.
James and Susan Rice will be sentenced at a later date. They face a statutory maximum sentence of five years in prison for each count of conspiracy, tax evasion and employment tax fraud, and they face an additional one year in prison for each count of failing to file individual and corporate tax returns. The Rices are further subject to additional monetary penalties, supervised release and restitution.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorneys Alexander Effendi and Michael Jones and paralegal Kim Better of the Tax Division are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
New Jersey Man Admits Stealing more than $450,000 in Unemployment Insurance BenefitsRead the Press Release
NEWARK, N.J. – A Union, New Jersey, man today admitted that he illegally obtained more than $450,000 in unemployment insurance benefits, Acting U.S. Attorney Rachael A. Honig announced.
Maurice Mills, 29, of Union, New Jersey, pleaded guilty by videoconference before U.S. District Judge Brian Martinotti to an information charging him with wire fraud.
According to documents filed in the case and statements made in court:
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. The CARES Act created a new temporary federal unemployment insurance program called Pandemic Unemployment Assistance (PUA), which provides unemployment insurance benefits (UIB) for individuals who were not eligible for other types of unemployment (e.g., the self-employed, independent contractors, gig economy workers). The CARES Act also created a new temporary federal program called Federal Pandemic Unemployment Compensation that provides additional benefits to those eligible for PUA and regular UIB. The New York State Department of Labor administers and manages the regular unemployment and PUA programs in the State of New York.
Between August and September of 2020, Mills submitted fraudulent UIB applications to the State of New York using the names of other individuals. As a result, the State of New York approved and provided, and Mills falsely obtained, more than $450,000 in UIB.
The charge of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gross profits to Mills or loss suffered by the victims, whichever is greatest. Sentencing is scheduled for Feb. 3, 2022.
Acting U.S. Attorney Honig credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Jonathan Mellone in Manhattan; special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., in Newark; postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero in Newark; and special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt in Newark, with the investigation leading to today’s arrest. She also thanked the New York State Department of Labor, Office of Special Investigations for its assistance in the investigation.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
New Bedford Man Pleads Guilty to Role in Cocaine ConspiracyRead the Press Release
BOSTON – A New Bedford man pleaded guilty on Wednesday, Sept. 15, 2021, in connection with his role in a cocaine trafficking conspiracy.
Orrin Guidry, 26, pleaded guilty before U.S. Senior District Court Judge Rya W. Zobel to conspiracy to distribute and to possess with intent to distribute cocaine. A sentencing date has not yet been scheduled.
In October 2020, Guidry was charged following an investigation into a drug trafficking organization led by co-conspirator Jason Valliere. According to the charging documents, Guidry and two other co-conspirators assisted Valliere in the coordination of a multi-kilogram drug deal with undercover agents. Guidry accepted cash payment in advance and agreed to wear a disguise for the anticipated drug deal. Guidry also agreed to serve as a lookout and armed manpower during any drug exchange.
On Aug. 26, 2021, Valliere was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to five years in prison and four years of supervised release.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolanta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Suffolk County Sheriff Steven W. Tompkins; Bristol County Sheriff Thomas M. Hodgson; Boston Police Acting Commissioner Gregory Long; Brockton Police Chief Emanuel Gomes; Bridgewater Police Chief Christopher D. Delmonte; East Bridgewater Police Chief Paul O’Brien; and Westport Police Chief Keith Pelletier made the announcement. Valuable assistance was provided by the Fall River Police Department. Assistant U.S. Attorney Kaitlin O’Donnell of Mendell’s Organized Crime and Gang Unit is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Monongalia County woman admits to drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Kelsey McClung, of Westover, West Virginia, has admitted to a drug charge, Acting U.S. Attorney Randolph J. Bernard announced.
McClung, 28, pleaded guilty today to one count of “Distribution of Cocaine Base.” McClung admitted to distributing cocaine base, also known as “crack cocaine,” in March 2020 in Monongalia County.
McClung faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Zelda E. Wesley and Sarah E. Wagner are prosecuting the case on behalf of the government. The FBI's Northern West Virginia Drug Task Force in partnership with the Mon Metro Drug Task Force, a HIDTA-funded initiative, investigated. The Task Forces have members from the Federal Bureau of Investigation; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; West Virginia State Police; Monongalia County Sheriff's Office; and, the Morgantown, WVU, Granville and Star City Police Departments. The investigation was also assisted by the following law enforcement partners: the Monongalia County Prosecutor’s Office, the FBI in Houston, Texas; the Houston Police Department's Multi Agency Gang Initiative; the United States Postal Inspection Service in Houston; and, the FBI and DEA in Los Angeles, California.
This case was the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
U.S. Magistrate Judge Michael John Aloi presided.
Monmouth County Man Sentenced to 30 Months in Prison for Unlawfully Possessing a FirearmRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man was sentenced to today to 30 months in prison for being a felon in possession of a firearm, Acting U.S. Attorney Rachael A. Honig announced.
Khalil I. Howard, 24, of Neptune, New Jersey, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an indictment charging him with one count of being a felon in possession of a firearm. Judge Sheridan imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
On April 7, 2019, officers with the Asbury Park Police Department were on foot patrol in the area of the Asbury Park Gardens, a multi-building public housing complex known to local law enforcement as a high-crime area due to numerous recent gang, firearms, and narcotics-related investigations and arrests at that location. They had been advised of a gathering in honor of a recently deceased gang member that was taking place at the Asbury Park Gardens. The officers proceeded to the area where the gathering was taking place and conducted a walk-through of the premises. One of the officers observed Howard, a previously convicted felon, on the second floor attempting to conceal a large bulge in his left jacket pocket. Howard quickly turned with his left arm clenched to the side of his body and walked to the third floor. The officers ordered Howard to stop, and apprehended him. They found a stolen Beretta 9-millimeter semi-automatic handgun, loaded with one round of 9-millimeter ammunition in the chamber and an additional seven rounds of 9-millimeter ammunition in the magazine, secreted inside Howard’s left jacket pocket. As a previously convicted felon, Howard is not permitted to possess firearms under federal law.
In addition to the prison term, Judge Sheridan sentenced Howard to three years of supervised release.
Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Newark Division, Trenton Field Office, under the direction of Special Agent in Charge Jeffrey L. Matthews, as well as officers of the Asbury Park Police Department, under the direction of Chief of Police David Kelso, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Ian D. Brater of the Criminal Division in Trenton.
Mason County Contract Mail Carrier pleads guilty to vehicle smuggling schemeRead the Press Release
Tacoma – A 48– year-old Mason County, Washington resident pleaded guilty today in U.S. District Court in Tacoma to three federal felonies related to a smuggling scheme and possession of child pornography, announced Acting U.S. Attorney Tessa M. Gorman. Christopher M. Cox pleaded guilty to: smuggling goods into the U.S.; making false statements related to the Clean Air Act; and possession of child pornography. Cox will be sentenced by U.S. District Judge Robert J. Bryan on December 10, 2021.
According to the plea agreement, between approximately 2015 and January 2019, Cox falsified the required paperwork on two dozen vehicles he imported from overseas. Many of the vehicles were extremely light vehicles imported from Japan that did not meet U.S. safety standards. Cox sold some of the vehicles to contract mail carriers he knew from his job. Cox falsified the forms that claimed the vehicles met both safety standards and Environmental Protection Agency (EPA) Clean Air Act standards. Cox used his identification as a contract mail carrier to circumvent inspections at the Port of Tacoma and took the vehicles from the Port without proper inspections. The total value of the imported vehicles exceeds $55,000. Those who bought the vehicles were not told that they failed to meet federal safety and pollution standards.
When law enforcement officers served search warrants on Cox’s electronic accounts, they observed images of child pornography. Some of the images are known series of images of child rape and abuse manufactured outside the State of Washington. When officers executed search warrants on Cox’s residence and obtained his electronic devices, they located 142 images and 2 videos of child molestation, rape and abuse.
Smuggling of goods into the U.S. and possession of child pornography are both punishable by up to 20 years in prison. Making false statements related to the Clean Air Act is punishable by up to 2 years in prison.
Under the terms of the plea agreement, the government will recommend no more than 63 months in prison. Judge Bryan will determine the appropriate sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by Homeland Security Investigations with critical assistance from U.S. Customs and Border Protection (CBP).
The case is being prosecuted by Assistant United States Attorney Cecelia Gregson.
Maryland Woman Sentenced in Erie for Role in Cocaine ConspiracyRead the Press Release
ERIE, Pa. - A resident of Hagerstown, Maryland, has been sentenced in federal court to 18 months in jail on her conviction of violating federal drug laws, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge Susan Paradise Baxter imposed the sentence on Sierra Dawn Frisby, 31 of Hagerstown, Maryland.
According to information presented to the court, Frisby conspired with five co-defendants to distribute large quantities of cocaine and fentanyl between January 2018 and February 2019.
Assistant United States Attorney Paul S. Sellers prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the EAGLE task force, which is comprised of members of the Federal Bureau of Investigation, the Pennsylvania Attorney General’s Office, Bureau of Narcotics Investigation and the Erie Police Department for the investigation leading to the successful prosecution of Frisby.
Marion Man Pleads Guilty to Distribution of Child PornographyRead the Press Release
ABINGDON, Va. – A Marion, Virginia man pleaded guilty last week to using the online messaging service KIK to distribute child sex abuse materials featuring prepubescent females.
According to court documents, Travis Shane Smith, 38, was identified by an undercover law enforcement officer working out of Wisconsin between May 4, 2020 and June 3, 2020, as being a member of a known child pornography online chat room.
Smith used the KIK username “tman_1983” to distribute child sex materials onto a KIK chatroom messaging board. Specifically, Smith distributed four videos of prepubescent females engaged in sexually explicit conduct, including two videos of adult males having sex with prepubescent females.
“Distributing videos depicting the sexual abuse of children perpetuates their trauma and abuse, and simply will not be tolerated,” Acting U.S. Attorney Daniel P. Bubar stated today. “It remains a top priority of our office to investigate and prosecute those who seek to victimize children. We appreciate the good work of our federal, state and local partners, who brought Smith to justice.”
“The FBI and our investigative partners are dedicated to protecting these victims, who become pawns in this world of online sexual exploitation; and will work together to identify and prosecute these criminals,” said Stanley M. Meador. Special Agent in Charge of the FBI’s Richmond Division. “There are resources to help these victims, and we encourage anyone who has been victimized or is aware of an on-going incident to report it to law enforcement immediately.”
Smith pleaded guilty to one count of knowingly distributing one or more visual depictions of a minor engaged in sexually explicit conduct. He is scheduled to be sentenced on December 15, 2021 and faces a mandatory minimum sentenced of five years in prison. A federal district court judge will determine his sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Federal Bureau of Investigation, Virginia State Police, Smyth County Sheriff’s Office, and Marion Police Department are investigating the case.
Assistant U.S. Attorney Lena Busscher is prosecuting the case.
Lubbock Dentist Pleads Guilty to Production of Child PornographyRead the Press Release
A Lubbock dentist pleaded guilty in federal court today to one count of production of child pornography, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Jason Paul White, 42, was charged via criminal complaint in January and indicted the following month. In August, prosecutors filed a superseding indictment against him alleging additional child pornography and enticement crimes involving seven victims over the course of 15 years. Mr. White pleaded guilty Monday before U.S. Magistrate Judge D. Gordon Bryant, Jr.According to plea papers, Mr. White admitted that in December 2009, he coerced a 17-year-old boy into engaging in sexually-explicit conduct in order to produce a video of that conduct. Over the next 11 months, Mr. White produced seven more sexually-explicit videos of the same child, which he uploaded to a Dropbox internet storage account.
Law enforcement discovered the Dropbox account in January 2021, during a search of Mr. White's business and residence. The child later identified himself in the videos. Other victims came forward as well.
Mr. White eventually admitted to producing sexually-explicit videos and enticing into sexual activity seven additional teenage boys, including one child not accounted for in the superseding indictment.
The children, who were as young as 13 at the time of the crime, told investigators that Mr. White used the ruse of running a pornography film business to lure them into sexual activity.
As a result of his plea, White faces a minimum sentence of 15 years and a maximum of 30 years in federal prison. He will also be required to forfeit his interest in his home in Lubbock and a 966-acre ranch in Garza County, where he committed his crimes. White will remain in custody pending his sentencing, which has not yet been set.
The Lubbock Police Department, the Federal Bureau of Investigation, Homeland Security Investigations, and the High Technology Investigative Unit within the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) investigated the case. Assistant United States Attorney Callie Woolam and CEOS Trial Attorney Austin Berry are prosecuting the case.Los Angeles Man Charged with Enticement of Minor Girl Who Ran Away in San FranciscoRead the Press Release
SAN FRANCISCO – Kingjohn Baylon Asuncion appeared in court today to face a federal criminal complaint charging him with coercion and enticement of a minor, announced Acting United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair.
The complaint alleges that Baylon, 23 years old and last known to live in Los Angeles, enticed a 13 year old girl to produce and send him child pornography on Instagram during the timeframe of December 25 through December 29, 2019. The complaint further alleges that on January 3, 2020, the minor female, who is from Northern California, ran away from her family, who were in San Francisco visiting the UCSF Medical Center, to meet up with Baylon. Two days later, the minor girl was found with Baylon at the Ferry Building in San Francisco.
Baylon made his initial appearance in federal court today before United States Magistrate Sallie Kim. Baylon remains in custody and his next scheduled appearance is Friday, September 24, 2021 at 10:30 a.m. for a detention hearing, again before United States Magistrate Judge Sallie Kim.
The complaint charges Baylon with persuading, coercing, or enticing a person younger than 18 years old to engage in a sexual activity, which includes the production of child pornography, in violation of 18 U.S.C. § 2422(b). If convicted, Baylon faces a minimum mandatory sentence of 10 years to a maximum of life in prison and a maximum fine of $250,000. However, any sentence following conviction is imposed by a court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
A complaint merely alleges that crimes have been committed, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Yoosun Koh is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Senna Milstead. The prosecution is the result of an investigation by the FBI who worked jointly with the University of California, San Francisco, Police Department, and the San Francisco Police Department, and with assistance from the Los Angeles Police Department.
Lantana Man Sentenced to 102 Months for Distribution and Possession of Child Sexual Abuse MaterialRead the Press Release
Miami, Florida – A Lantana, Florida man, who plead guilty to distribution and possession of child sexual abuse material, was sentenced today in federal court in West Palm Beach to 102 months’ imprisonment, followed by 20 years’ supervised release and ordered to pay $31,000 restitution to victims.
Between 2020 and 2021, Carl Lee Jasperse, 67, using the screenname “Dandy Daddy” used a mobile application to communicate with individuals about child sexual abuse material and trade the same. He was found to be in possession of more than 4000 images and videos of child sexual abuse material when a search warrant was executed at his Lantana residence in January 2021.
Acting U.S. Attorney Juan Antonio Gonzalez of the Southern District of Florida and Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI) Miami, announced the sentence.
HSI Miami’s West Palm Beach Office investigated the case in collaboration with the Lantana Police Department. Assistant U.S. Attorney Gregory Schiller is prosecuting it.
This case was brought as part of Project Safe Childhood (PSC), 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 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 the Project Safe Childhood initiative and for information regarding Internet safety, please visit www.justice.gov/psc.
To report online child sexual exploitation, use the electronic Cyber Tip Line or call 1-800-843-5678. The Cyber Tip Line is operated by the National Center for Missing and Exploited Children in partnership with the FBI and other law enforcement agencies.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-80025.
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Kent, Washington man sentenced to 7+ years in prison for sexual assault on teen in Olympic National ParkRead the Press Release
Tacoma – A 36-year-old Kent, Washington, man was sentenced today in U.S. District Court in Tacoma to 87 months in prison for the August 2020 rape of a 14-year-old, announced Acting U.S. Attorney Tessa M. Gorman. Christopher James Kuna was at a gathering with family and close friends in Olympic National Park when he provided alcohol to the victim and committed the sexual assault. At the sentencing hearing U.S. District Judge Benjamin H. Settle said, “It is hard to describe a more serious case than this. The rape of a 14-year-old. The facts are egregious. The victim has a life sentence and that cannot be changed.”
According to records filed in the case, Kuna was a trusted family friend of the victim and the victim’s family. During the evening hours of August 24 and early morning of the 25th, Kuna plied the victim with alcohol causing intoxication to such an extent that the victim vomited. Kuna then sexually assaulted the victim. Because he was more than 20-years older and much larger than the victim, the victim was fearful of resisting Kuna. Kuna told the victim he had been thinking about the assault for a long time.
A trusted family friend assisted the family in making a report to local law enforcement. Upon realizing jurisdiction lay within a national park, local law enforcement referred the matter to the National Park Service investigative services branch who took over the investigation.
Kuna will be required to register as a sex offender following any prison term. He will be on 15 years of supervised release following prison.
The case was investigated by the National Park Service and the FBI.
The case was prosecuted by Assistant United States Attorneys Angelica Williams, Jonas Lerman, and Hilary Stuart.
Justice Department Settles with the State of New Jersey’s Student Lending Authority for Alleged Violations of the Servicemembers Civil Relief ActRead the Press Release
The Department of Justice announced today that New Jersey Higher Education Student Assistance Authority (HESAA) has agreed to enter into a settlement and pay $50,000 to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by obtaining unlawful court judgments against two military servicemembers who co-signed student loans.
Under the proposed consent decree, which was filed today in the United States District Court for the District of New Jersey and must still be approved by the Court, HESAA will pay $15,000 each to two servicemembers who had default judgments entered against them, and will pay a civil penalty of $20,000 to the United States. The consent decree also requires HESAA to provide SCRA training to its employees and outside counsel and develop new policies and procedures consistent with the SCRA. Since the United States opened its investigation, HESAA has worked cooperatively to revise its policies, procedures and training to comply with the SCRA and the terms of the consent decree.
“Congress enacted the Servicemembers Civil Relief Act to protect those who risk their lives serving our nation,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This settlement clearly sends the message that the Department of Justice will continue enforcing the Act vigorously to protect servicemembers and to ensure that all covered industries, including providers of student loans, comply fully with the law.”
“Through this settlement, we honor the brave members of our armed services by ensuring that their rights are protected when called to duty,” said Acting U.S. Attorney Rachael A. Honig for the District of New Jersey. “This office remains steadfast in its commitment to protect the rights of servicemembers in New Jersey. We thank HESAA for its cooperation with our investigation and HESAA’s acknowledgement that protecting the rights of servicemembers under the SCRA is of significant public importance.”
The Civil Rights Unit of the U.S. Attorney’s Office for the District of New Jersey launched its investigation after Coast Guard legal assistance attorneys in Portsmouth, Virginia, reported that HESAA had obtained a default judgment in 2019 against a Coast Guard Petty Officer who had co-signed for two student loans. The SCRA protects servicemembers from default judgments in circumstances in which, because of their military service, they may be unable to appear in court and defend themselves. Under the SCRA, if a lender files a civil lawsuit against a borrower and then seeks a default judgment, the lender must notify the court of the borrower’s military status. If the borrower is in military service, the court cannot enter judgment until it appoints an attorney to represent the borrower, and the court must, in most circumstances, postpone the proceedings for at least 90 days.
In a complaint filed in the United States District Court for the District of New Jersey, the U.S. Attorney’s Office alleged that HESAA obtained default judgments against two SCRA-protected servicemembers by failing to disclose their military service and filing affidavits that inaccurately stated that they were not in the military. Lenders can verify an individual’s military status by searching the Defense Manpower Data Center’s free publicly available website (DMDC database) or by reviewing their files to see if there are applications, military leave and earnings statements, or military orders indicating military status. After conducting DMDC database searches that confirmed that the servicemembers were in military service, HESAA, through its outside counsel, nevertheless filed affidavits in state court that inaccurately stated that the servicemembers were not in military service.
This matter was handled jointly by the U.S. Attorney’s Office for the District of New Jersey and the Civil Rights Division’s Housing and Civil Enforcement Section. Since 2011, the department has obtained over $474 million in monetary relief for over 120,000 servicemembers through its enforcement of the SCRA. For more information about the department’s SCRA enforcement efforts, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at http://legalassistance.law.af.mil.
Individuals who believe their civil rights have been violated in the District of New Jersey may also file a complaint with the U.S. Attorney’s Office for the District of New Jersey at: http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or may call the U.S. Attorney’s Office’s Civil Rights Complaint Hotline at (855) 281-3339.
The United States is represented by Special Assistant U.S. Attorney Victor Williamson of the U.S. Attorney’s Civil Rights Unit, Civil Division, in consultation with the Housing and Civil Enforcement Section.
Justice Department Settles with State of New Jersey’s Student Lending Authority for Alleged Violations of Servicemembers Civil Relief ActRead the Press Release
NEWARK, N.J. – The Department of Justice announced today that the New Jersey Higher Education Student Assistance Authority (HESAA) has agreed to enter into a settlement and pay $50,000 to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by obtaining unlawful court judgments against two servicemembers who had co-signed student loans.
Under the proposed consent decree, which was filed today in the U.S. District Court for the District of New Jersey and must still be approved by the court, HESAA will pay $15,000 each to two servicemembers who had default judgments entered against them, and will pay a civil penalty of $20,000 to the United States. The consent decree also requires HESAA to provide SCRA training to its employees and outside counsel and to comply with new policies and procedures consistent with the SCRA.
“Through this settlement, we honor the brave members of our armed services by ensuring that their rights are protected when called to duty,” Acting U.S. Attorney Rachael A. Honig said. “This office remains steadfast in its commitment to protect the rights of servicemembers in New Jersey. We thank HESAA for its cooperation with our investigation and HESAA’s acknowledgement that protecting the rights of servicemembers under the SCRA is of significant public importance.”
“Congress enacted the Servicemembers Civil Relief Act to protect those who risk their lives serving our nation,” Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division said. “This settlement clearly sends the message that the Department of Justice will continue enforcing the Act vigorously to protect servicemembers and to ensure that all covered industries, including providers of student loans, comply fully with the law.”
The Civil Rights Unit of the U.S. Attorney’s Office for the District of New Jersey launched its investigation after Coast Guard legal assistance attorneys in Portsmouth, Virginia, reported that HESAA had obtained a default judgment in 2019 against a Coast Guard petty officer who had co-signed for two student loans. The SCRA protects servicemembers from default judgments in circumstances in which, because of their military service, they may be unable to appear in court and defend themselves. Under the SCRA, if a lender files a civil lawsuit against a borrower and then seeks a default judgment, the lender must notify the court of the borrower’s military status. If the borrower is in military service, the court cannot enter judgment until it appoints an attorney to represent the borrower, and the court must, in most circumstances, postpone the proceedings for at least 90 days.
In a complaint filed today with the proposed consent decree, the Department of Justice alleges that HESAA obtained default judgments against two SCRA-protected servicemembers by failing to disclose their military service and filing affidavits that inaccurately stated that they were not in the military. Lenders can verify an individual’s military status by searching the Defense Manpower Data Center’s (DMDC) free, publicly available website or by reviewing their files to see if there are applications, military leave and earnings statements, or military orders indicating military status. After conducting DMDC database searches that confirmed that the servicemembers were in military service, HESAA, through its outside counsel, nevertheless filed affidavits in state court that inaccurately stated that the servicemembers were not in military service.
This matter was handled jointly by the U.S. Attorney’s Office for the District of New Jersey and the Civil Rights Division’s Housing and Civil Enforcement Section. Since 2011, the department has obtained over $474 million in monetary relief for over 120,000 servicemembers through its enforcement of the SCRA. For more information about the department’s SCRA enforcement efforts, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at http://legalassistance.law.af.mil.
Individuals who believe their civil rights have been violated in the District of New Jersey may also file a complaint with the U.S. Attorney’s Office for the District of New Jersey at: http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or may call the U.S. Attorney’s Office’s Civil Rights Complaint Hotline at (855) 281-3339.
The government is represented by Special Assistant U.S. Attorney Victor Williamson of the U.S. Attorney’s Civil Rights Unit, Civil Division, in consultation with the Civil Rights Division’s Housing and Civil Enforcement Section.
Justice Department Seeks to Shut Down Texas Return PreparerRead the Press Release
The United States has filed a complaint in the U.S. District Court for the Eastern District of Texas seeking to bar a Beaumont, Texas, tax return preparer from owning or operating a tax return preparation business and preparing federal income tax returns for others.
The civil complaint filed against Michelle Denise Johnston alleges that, since at least 2011, she has operated a tax preparation business in Beaumont under the name “Allen and Johnston Tax Service.” According to the complaint, Johnston prepared and filed tax returns that understated her customers’ federal income tax liabilities by (1) wholly fabricating businesses and related business expenses; (2) improperly inflating such expenses for existing businesses; and (3) fabricating or improperly inflating itemized deductions for casualty losses and mortgage interest deductions.
The complaint further alleges that Johnston has engaged in a “refund-skimming” scheme that “double dips” her tax preparation fees. According to the complaint, customers directly paid Johnston preparation fees ranging from $200 to $500, based on preparation of a “tentative income tax return” that showed a modest refund. The complaint alleges that Johnston then took the tentative return and inflated and/or fabricated deductions, credits and losses to create a larger tax refund. According to the complaint, Johnston filed the fabricated return with the IRS, which deposited the inflated refund with a third-party vendor. The complaint alleges that Johnston then caused the vendor to pay her customer the amount shown on the tentative return and deducted a second preparation fee from the remaining funds. According to the complaint, the scheme occurred unbeknownst to her customers because Johnston only provided them with either an incomplete copy of the return or with a copy of the return that was different from that filed with the IRS.
According to the complaint, Johnston prepared over 3,100 tax returns in aggregate for tax years 2018 through 2020. As a result, the complaint alleges, Johnston has cost the United States significant losses of tax revenue. The complaint further alleges that Johnston harmed her customers, who may be liable for repayment of refunds claimed in their names, plus penalties and interest.
Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams, and taxpayers seeking a return preparer should remain vigilant. (More information can also be found here.) The IRS has information on its website for choosing a tax preparer, has launched a free directory of federal tax preparers and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers. The IRS also has a list of important reminders for taxpayers who are about to file their 2020 tax returns, including how to prepare for a smooth filing process.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Individual Extradited from the Dominican Republic to Puerto Rico to Face Drug Trafficking ChargesRead the Press Release
SAN JUAN, Puerto Rico – On October 13, 2016, a Federal Grand Jury in the district of Puerto Rico returned a seven-count indictment for conspiracy to import a controlled substance, importation of a controlled substance (aiding and abetting), attempted importation, conspiracy to possess with intent to distribute, possession with intent to distribute (aiding and abetting), attempted possession with intent to distribute, and one count for conspiracy to launder money against Juan José De La Cruz-Morales, aka “Wandy” and five additional defendants as part of a Caribbean Corridor Strike Force (CCSF) investigation.
De La Cruz-Morales was recently arrested in Santo Domingo, Dominican Republic during Operation Falcon, led by the Dominican National Directorate for Drug Control (DNCD) and the Dominican Republic Attorney General Office (PGR) with DEA support.
“This successful extradition of De La Cruz-Morales is a reflection of years of collaboration and cooperation by the Department of Justice and our law enforcement partners who are all committed to combatting transnational criminal organizations,” said W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. “Thanks to the authorities in the Dominican Republic for their efforts in facilitating this extradition so the defendant can be held accountable and face justice for his alleged crimes.”
“DEA recognizes the extraordinary work of the DNCD and Dominican Republic authorities in attacking transnational criminal organizations which harm both our countries,” said John F. Kanig, DEA Caribbean Division Acting Special Agent in Charge. “The dismantlement of this organization has certainly cut off an important drug smuggling scheme in the Caribbean Border. In coordination with our federal, state and foreign partners, DEA will continue to pursue strategic targets in support of our mission to provide security and protection to our citizens.”
“The Caribbean Corridor Strike Force and the Caribbean Border Interagency Group platforms foster a great degree of cooperation and transparency between federal law enforcement agencies which facilitate the investigation and prosecution of high-level targets and leaders of transnational criminal organizations such as Mr. De La Cruz-Morales,” said Ivan J. Arvelo, Special Agent in Charge for HSI San Juan. “HSI also appreciates the efforts of our great law enforcement partners in the Dominican Republic, particularly the DNCD and PGR.”
The Caribbean Corridor Strike Force (CCSF) is a multi-agency Organized Crime Drug Enforcement Task Force group operating in the District of Puerto Rico focusing on Caribbean and South American-based Transnational Criminal Organizations involved in the maritime and air smuggling shipments of narcotics into Puerto Rico and the Continental United States and in the laundering of drug proceeds using bulk cash smuggling and sophisticated laundering activities. CCSF signatory agencies include the DEA, HSI, FBI, CGIS, USMS, and the U.S. Attorney’s Office.
Assistant U.S. Attorney Jawayria Z. Auchter from the Transnational Organized Section is in charge of the prosecution of the case. The CCSF initiated an investigation which led to the identification of De La Cruz-Morales and other targets operating in the Dominican Republic. Intelligence shared with Dominican counterparts assisted the DNCD in the developing of the successful Operation Falcon. The Justice Department’s Office of International Affairs provided substantial assistance in securing De La Cruz-Morales’s arrest and extradition from the Dominican Republic.
The defendant faces a possible sentence of 10 years up to life in prison.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Fresno Man Sentenced to 10 Years in Prison for Drug and Firearm ChargesRead the Press Release
FRESNO, Calif. — U.S. District Judge Dale A. Drozd sentenced Hector Kioni Gongora, 44, of Fresno, today to 10 years in prison for possessing methamphetamine with the intent to distribute and unlawfully possessing a firearm and ammunition after being convicted of a felony crime, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Jan. 11, 2021, Gongora was arrested on a felony warrant and found in possession of a firearm and methamphetamine. A search of his residence recovered over 300 additional rounds of ammunition. He was charged with one count of possessing methamphetamine with the intent to distribute and two counts of being a felon in possession of a firearm and ammunition and pleaded guilty on June 29, 2021.
This case was the product of an investigation by the Federal Bureau of Investigation and the Fresno Police Department. Assistant U.S. Attorney Antonio J. Pataca prosecuted 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.
Four Militia Group Members Plead Guilty to Obstruction of Justice ConspiracyRead the Press Release
SAN FRANCISCO – Four members of the “Grizzly Scouts” militia group, a group connected to the “boogaloo” movement, have pleaded guilty to conspiring to obstruct justice by destroying records connected to the investigation of the murder of a federal Protective Security Officer (PSO) contracted to the Federal Protective Service and the shooting and attempted murder of a second PSO on May 29, 2020, at the Oakland federal building, announced Acting United States Attorney Stephanie M. Hinds and FBI Special Agent in Charge Craig D. Fair.
Jessie Rush, 29, of Turlock; Robert Blancas, 33, a transient resident of the Bay Area; Simon Ybarra, 23, of Los Gatos; and Kenny Miksch, 21, of San Lorenzo, were indicted on March 23, 2021, in connection with their scheme to obstruct justice by destroying records material to the murder and shooting investigation. Today, Kenny Miksch pleaded guilty in United States District Court, the last of the four defendants to do so.
According to each of their plea agreements entered into at the time of their guilty pleas, Rush, Blancas, Ybarra, and Miksch admitted that in April 2020 they joined an armed anti-government militia group named the “1st Detachment, 1st California Grizzly Scouts” (Grizzly Scouts). They had connected earlier via a Facebook group created in connection to the “boogaloo” movement. “Boogaloo” is a term, as noted in their indictment, used by some militia extremists to reference a purportedly impending politically-motivated civil war or uprising against the government. The “boogaloo” movement is not a single cohesive group but rather a loose concept used as a rallying point for some extremists.
According to their plea agreements, Rush named himself the Commanding Officer of the Grizzly Scouts and assumed the rank of “Major.” Blancas assumed the rank of “1st Lieutenant” with responsibilities for the group’s security and intelligence. Ybarra received the rank of “Corporal” and handled recruitment. Miksch received the rank of “1st Lieutenant” with responsibilities for the group’s training and firearms instruction.
All four admitted they periodically held group meetings for firearms training and other purposes. They engaged in armed, in person “training operations” in May 2020 with “operations orders” that labeled law enforcement as potential “enemy forces” and suggested using lethal force and taking prisoners. All four acknowledged in their plea agreements that they engaged in June 2020 discussions with other Grizzly Scouts about “boog” (boogaloo), waging war against the government, and tactics for killing law enforcement personnel, including police officers.
Rush, Blancas, Ybarra, and Miksch each acknowledged in their plea agreements that they learned a Grizzly Scouts member was allegedly involved in the May 29, 2020, murder of a federal PSO and the attempted murder of his fellow PSO in Oakland. They also each admitted that the Grizzly Scouts member sent group communications via a WhatsApp group entitled “209 Goon HQ” during that member’s alleged attack on and shoot-out with Santa Cruz County Sheriff’s deputies in Ben Lomond, California on June 6, 2020. According to their plea agreements, that member asked the other group members to come to his aid and said, “Dudes i offed a fed.” Rush admitted he instructed that member to delete data on his phone and get out of there.
Rush, Blancas, Ybarra, and Miksch each admitted to conspiring with other group members to destroy the records of their interactions and communications because they foresaw authorities would investigate and prosecute that Grizzly Scouts member. Specifically, they each admitted in their plea agreements to destroying records associated with the WhatsApp “209 Goon HQ” group, including communications with that Grizzly Scouts member. Blancas also admitted to destroying files on Dropbox regarding the Grizzly Scouts that consisted of the group’s rank structure, a non-disclosure agreement requiring members to maintain confidentiality of group materials, a liability release waiver, descriptions of the Grizzly Scouts uniforms, and a scorecard assessing the skills of Grizzly Scouts members in combat, firearms, medical, and other training.
Each of the four defendants admitted they intended to impair the integrity and availability of the above records for use in official proceedings, including the investigation and prosecution of the May 29, 2020, murder of one PSO and attempted murder of another PSO at the Oakland federal building.
Blancas was also earlier charged in a separate complaint and information with the enticement of a minor to engage in sexual activity, that is, the production of child pornography. In entering his plea of guilty, Blancas admitted that from about April through September 2020 he enticed a 15-year old girl to repeatedly make and send him pornographic photographs and videos of herself. Blancas admitted that he received at least 77 pornographic photographs and 31 videos from the victim, all while exchanging thousands of messages with her and speaking to her by audio and video call. Blancas admitted that he knew she was a minor when he did so.
Blancas pleaded guilty on August 23, 2021, to enticing a minor to engage in sexual activity in violation of 18 U.S.C. § 2422(b). On the same date Blancas pleaded guilty in the destruction of records case to three counts: one count of conspiracy to obstruct justice by destroying records in an official proceeding in violation of 18 U.S.C. § 1512(k), and two counts of destroying records in official proceedings in violation of 18 U.S.C. § 1512(c)(1). He was arrested on December 1, 2020, and remains in custody as he awaits sentencing. He entered all of his guilty pleas before the Honorable Vince Chhabria, United States District Judge.
Rush and Ybarra pleaded guilty on September 13, 2021, and Miksch pleaded guilty on September 20, 2021. Each defendant pleaded to one count of conspiracy to obstruct justice by destroying records in violation of 18 U.S.C. § 1512(k). They entered their guilty pleas before the Honorable James Donato, United States District Judge.
Blancas’s sentencing hearing is scheduled for December 6, 2021, before U.S. District Judge Chhabria in San Francisco.
The sentencing hearing for Rush is scheduled for January 10, 2022. The sentencing hearings for Ybarra and Miksch are scheduled for February 7, 2022. These sentencing hearings will occur before U.S. District Judge Donato in San Francisco.
Rush, Blancas, Ybarra, and Miksch each face a maximum statutory penalty of 20 years in prison and a fine of $250,000 for conspiracy to destroy records in an official proceeding in violation of 18 U.S.C. § 1512(k) and, as applies to Blancas only, for each of his two counts of the destruction of records in an official proceeding in violation of 18 U.S.C. § 1512(c)(1).
Blancas also faces an additional penalty of a minimum of 10 years imprisonment to a maximum of life in prison and a maximum $250,000 fine for enticing a minor to engage in sexual activity in violation of 18 U.S.C. § 2422(b).
All sentences imposed by a court, however, are imposed only after the court’s consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The cases are being prosecuted by Eric Cheng and Frank Riebli from the Special Prosecutions Section of the U.S. Attorney’s Office for the Northern District of California, with assistance from the National Security Division’s Counterterrorism Section. The prosecutions are the result of investigations by the Federal Bureau of Investigation.
Fort Myers Career Criminal Sentenced to Fifteen Years for Firearm OffenseRead the Press Release
Fort Myers, Florida – U.S. District Judge John L. Badalamenti has sentenced Larry Lynn Gary (29, Fort Myers) to 15 years in federal prison for possessing a firearm and ammunition as a previously convicted felon. Gary had pleaded guilty on May 6, 2021.
According to court documents, on August 6, 2020, Gary was a passenger in a vehicle that had been pulled over for a routine traffic infraction by an officer from the Fort Myers Police Department. After exiting the vehicle at the officer’s request, Gary ran from the traffic stop leaving behind a blue bag in the car. A search of the bag revealed a loaded Glock 19 firearm and a bag of fentanyl. Gary was later apprehended by officers with the help of a police K-9. At the time, Gary had multiple prior felony convictions and had recently been released from prison. He is prohibited by federal law from possessing firearms or ammunition.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Myers Police Department. It was prosecuted by Assistant United States Attorney Simon R. Eth.
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.
Former State Department Employee Pleads Guilty to Honest Services Fraud SchemeRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, Michael Speckhardt, the Special Agent in Charge of the U.S. Department of State, Office of Inspector General (“State Department OIG”), and Thomas Fattorusso, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation, New York Field Office (“IRS-CI”), announced that MAY SALEHI, a former State Department employee, pled guilty today to conspiracy to commit honest services fraud. SALEHI was a longtime State Department employee who was involved in evaluating bids for critical overseas government construction projects such as U.S. embassies and consulates. SALEHI gave confidential inside bidding information to a bidder, and received $60,000 in kickback payments in return. SALEHI surrendered today and pled guilty before United States Magistrate Judge James L. Cott. SALEHI’s case is assigned to United States District Judge P. Kevin Castel.
Manhattan U.S. Attorney Audrey Strauss said: “As a State Department employee, May Salehi was entrusted to serve the public. Instead, she abused her position of trust to line her own pockets, as she admitted today. Salehi revealed, and traded on, confidential information – corrupting the bidding process and receiving lucrative kickbacks in return. Together with our law enforcement partners, this Office is committed to rooting out corruption.”
State Department OIG Special Agent in Charge Michael Speckhardt said: “The State Department OIG is dedicated to preserving the integrity of the Department’s programs and processes. As government employees, we are entrusted to carry out our responsibilities with integrity and support an equitable process. May Salehi did just the opposite. She used her position of public trust to selfishly obtain a personal financial advantage by selling proprietary contracting information for profit. Today’s plea, the culmination of extensive investigative and prosecutorial efforts, demonstrates that those who violate the public’s trust will be held accountable for their actions.”
IRS-CI Acting Special Agent in Charge Thomas Fattorusso said: “May Salehi violated the trust of the American taxpayer by putting her personal financial gain over her responsibilities to safeguard confidential information and government resources. Today’s guilty plea shows IRS-Criminal Investigation will continually work with our law enforcement partners to protect the American taxpayer from this type of abuse.”
According to the allegations in the Information, court filings, and statements made in court:
From 1991 until mid-2021, MAY SALEHI was a State Department employee. For many years, SALEHI worked as an engineer in the State Department’s Overseas Building Operations division (“OBO”), which directs the worldwide overseas building program for the State Department and the U.S. Government community serving abroad.
In 2016, the State Department solicited bids for a multimillion-dollar construction project known as a compound security upgrade to be performed at the U.S. Consulate in Bermuda (the “Bermuda Project”). The bidding process involved the submission of blind, sealed bids from various bidders. Six companies submitted sealed bids, one of which was named Montage, Inc. (“Montage”).
SALEHI was involved in the Bermuda Project in several respects. Among other things, SALEHI served as the Chair of the Technical Evaluation Panel (“TEP”) – a panel of experts that evaluates the technical aspects of bids, including whether they meet the State Department’s structural and security needs. In connection with the Bermuda Project, the TEP disqualified one bidder, but determined that the other five bids (including Montage’s bid) were technically acceptable.
In September 2016, the State Department’s employees who evaluate the cost of bids gave the remaining five bidders (including Montage) the opportunity to re-bid, if they wished to do so. Montage had two days to decide whether to submit a re-bid. During that two-day window, Montage’s principal, Sina Moayedi, spoke with SALEHI by phone and sought confidential inside bidding information about the relationship between Montage’s bid and those of its competitors, which SALEHI supplied. SALEHI knew that this information was confidential, and that it was unlawful to provide it to a prospective bidder. After Moayedi received this inside information from SALEHI, Montage immediately increased its bid by $917,820. In its revised submission to the State Department, Moayedi and Montage lied as to the reason it had increased its bid by nearly $1 million, falsely claiming that it had discovered “an arithmetic error” in its estimates. Montage was ultimately awarded the Bermuda Project with a revised bid of $6.3 million.
In the months that followed, Moayedi paid SALEHI a total of $60,000 in kickbacks, which he paid in three installments. In making these kickback payments, Moayedi used intermediaries to obscure the link between him and SALEHI. To conceal the true purpose of the kickback payments, SALEHI also gave one of the intermediaries a Persian rug. SALEHI did not report the $60,000 kickback payments on her State Department financial disclosure form.
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SALEHI, 66, of Washington, D.C., pled guilty to one count of conspiracy to commit honest services fraud, which carries a maximum sentence of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as SALEHI’s sentence will be determined by Judge Castel.
Sina Moayedi was arrested on May 28, 2021, on three charges contained in a criminal Complaint: wire fraud, conspiracy to commit wire fraud, and bribery of a public official. The charges against Moayedi are pending.
Ms. Strauss praised the outstanding investigative work of the State Department OIG, Special Agents from the United States Attorney’s Office for the Southern District of New York, and IRS‑CI. She also thanked Special Agents from the United States Attorney’s Office for the District of Columbia and the Montgomery County, Maryland, Police Department.
The Office’s Complex Frauds and Cybercrime Unit is handling this criminal case. Assistant U.S. Attorneys Michael D. Neff and Louis A. Pellegrino are in charge of the prosecution.
Former Police Officer Who Fled After Sentencing Pleads Guilty to Failing to Surrender for SentencingRead the Press Release
Baltimore, Maryland – James Ian Piccirilli, age 40, of Mt. Airy, Maryland, pleaded guilty today to failing to surrender for service of sentence. Piccirilli also admitted to illegally possessing additional firearms while on the run.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Tim Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and U.S. Marshal Johnny Hughes.
According to his guilty plea, on January 14, 2020, U.S. Circuit Judge Stephanie Thacker sentenced Piccirilli to 30 months’ imprisonment for possessing an unregistered fully automatic firearm in violation of the National Firearms Act (“NFA”).
The National Firearms Act regulates certain firearms, known as “NFA firearms,” such as short-barreled rifles; fully automatic firearms; firearms that can be readily made fully automatic; parts that can make a firearm fully automatic; and silencers. Individuals may not possess an NFA firearm that is not registered in the National Firearms Registration and Transfer Record (NFRTR), nor can a person sell or transfer an NFA firearm without the prior approval of the ATF.
According to his November 2019 guilty plea, on October 5, 2018, Piccirilli took an MKE 5.56mm caliber firearm, which had been altered to convert it into a fully automatic short-barreled rifle, bringing the firearm under the regulation of the NFA, to the home of another individual, who was a licensed gun dealer in Maryland. Piccirilli, formerly a police officer in Brunswick, Maryland, legally owned non-NFA firearms and had the skill and expertise to convert non-NFA firearms into NFA firearms.
Piccirilli admitted that the firearm belonged to him, but it was not registered to him, in violation of the NFA. According to information presented to the Court, Piccirilli tried to launder the unregistered firearm by attempting to have the gun dealer register the illegal firearm and/or sell it, so that the sale of the gun would appear to be legal. In December 2018, Piccirilli attempted to sell the firearm to an ATF undercover agent without ATF’s prior approval and in text messages and recorded calls tried to conceal the nature of the transaction. On December 14, 2018, as Piccirilli left his house to complete the transaction, he was apprehended by ATF agents. Investigators executed search warrants on his house and two vehicles, seizing 10 unregistered fully automatic firearms, one unregistered short-barreled rifle, and seven unregistered silencers.
The District Court ordered Piccirilli to surrender by 2:00 p.m. on March 16, 2020, to begin serving his sentence. The Court communicated the order to Piccirilli orally during the sentencing hearing and in writing in his judgment. Piccirilli’s girlfriend, Kellie Nicole Warfield, age 30, of Mt. Airy, Maryland was present at the January sentencing hearing.
As stated in his September 2021 plea agreement, on January 24, 2020, Piccirilli’s probation officer received an alert that Piccirilli had disabled his ankle monitor and had failed to return home by his curfew. Soon after, law enforcement discovered that Piccirilli and Warfield disposed of their cell phones and sold their vehicle.
As a part of their investigation, ATF investigators and U.S. Marshals interviewed family members, friends, and associates of the couple. As a result of gathered intelligence, investigators discovered that the couple relocated to Ramsey, Indiana.
Further investigation revealed Warfield received Kansas temporary tags for a truck that she and Piccirilli purchased while evading law enforcement. Subsequently, in September 2020, Warfield used her real personal information to apply for an Indiana driver’s license and registration for the truck.
As stated in his plea agreement, on October 13, 2020, investigators arrested Piccirilli and Warfield at a New Salisbury, Indiana restaurant where Warfield worked. At the time, the couple was living in a camper attached to a truck.
As a result of search warrants executed on the truck and camper, law enforcement recovered a 9 mm caliber pistol bearing no serial number, loaded with a full magazine of ammunition, two fully loaded magazines, a A-15 .223/5.56mm caliber rifle, and additional rounds of ammunition. The rifle had a selector switch, converted it into a fully automatic rifle, bringing the firearm under the regulation of the NFA.
In addition, a witness informed investigators that Piccirilli identified himself under the alias of “Jack Davis” and, at one point, asked her to hold a 9 mm caliber pistol and silencer. The witness possessed a bag containing the firearm and silencer belonging to Piccirilli. The silencer lacked a serial number, as required by the NFA. Piccirilli had no NFA firearms registered to him in the NFRTR.
Piccirilli agrees that he was on release for another criminal charge and that he was required by court order to surrender for service of sentence by March 16, 2020. Despite being aware of that requirement, he knowingly and willfully failed to surrender. In addition, he agrees that he knowingly possessed NFA firearms that were not registered to him in the NFRTR. He knew that those objects were NFA firearms.
Piccirilli and the government have agreed that, if the Court accepts the plea agreement, Piccirilli will be sentenced to between 30 to 46 months in federal prison. U.S. District Judge Ellen L. Hollander has scheduled sentencing for November 19, 2021 at 10 a.m.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
Acting United States Attorney Jonathan F. Lenzner commended the Baltimore and Louisville ATF, U.S. Marshals Service, the Southeast Indiana Regional SWAT Team, and the Indiana State Police for their work in the investigation. Mr. Lenzner also thanked the U.S. Attorney’s Office for the Southern District of Indiana, and Assistant U.S. Attorneys Brandon K. Moore and Patricia McLane, who are prosecuting the case.
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Former Jacksonville Sheriff’s Office Dispatcher Arrested and Charged with Distributing Photos and A Video Depicting the Sexual Abuse of Young ChildrenRead the Press Release
Jacksonville, Florida – Acting United States Attorney Karin Hoppmann announces that Scott Matthew Yotka (37, Jacksonville) has been arrested and charged with distributing images and a video over the internet depicting the sexual abuse of young children. Yotka faces a minimum mandatory penalty of 5 years, and up to 20 years, in federal prison and a potential life term of supervised release. Yotka was arrested by FBI agents at his home on September 17, 2021, and he remains in federal custody pending a detention hearing on September 22, 2021.
According to court documents, on September 15, 2021, Yotka, using the name “Scottnjax44,” utilized a particular social media application (app) to engage in online private conversations with an undercover FBI task force officer in Washington, D.C., who was posing as the parent of a child. Yotka was acting as the administrator of a public chat room on this app. During a private message conversation, Yotka engaged in an explicit conversation with the undercover officer regarding the sexual exploitation of children. Additionally, Yotka sent the undercover officer several photos and one video that depicted young children engaged in sexually explicit conduct. Yotka also stated that he was employed as an “emergency dispatcher” and worked “12 hour shifts.”
The FBI sought emergency disclosure information from the app and AT&T that revealed internet protocol login activity by the “Scottnjax44” account resolved, in part, to Yotka’s residence in Jacksonville and the subscriber listed on that account was “Scott Yotka.” This information also indicated that the app company listed frequent login activity from a second IP address used by the “Scottnjax44” user account, which activity resolved to the City of Jacksonville at the Ed Ball Building located in downtown Jacksonville. On September 16, 2021, FBI agents coordinated with the Jacksonville Sheriff’s Office (JSO) and confirmed that Yotka was at that time employed by JSO as a dispatcher and that he routinely worked a 12-hour night shift.
On the morning of September 17, 2021, the FBI, assisted by the JSO, executed a federal search warrant at Yotka’s residence and arrested Yotka.
A complaint is merely a 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 case was investigated by the Federal Bureau of Investigation in Jacksonville and Washington, D.C. and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
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.
Florida Man Sentenced to Prison on Federal Drug ChargeRead the Press Release
HUNTINGTON, W.Va. – Christopher Michael Adkins, 37, was sentenced to 78 months in federal prison for possession with intent to distribute heroin and methamphetamine.
According to court documents and statements made in court, law enforcement officers were conducting surveillance on a residence on 8th Street in Huntington on January 19, 2021 in order to locate Adkins who had warrants out for his arrest. When Adkins was observed exiting the residence, a traffic stop was conducted, and officers located in his vehicle 20.6 grams of methamphetamine, 33.8 grams of fentanyl and 13.7 grams of cocaine, as well as digital scales and multiple cell phones. Officers also located a Smith & Wesson .40 caliber pistol. In a Mirandized interview, Adkins admitted that the items in the vehicle were his.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative efforts of the Huntington Violent Crime and Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Ryan A. Keefe handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00031.
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Flandreau Woman Charged with Assaulting a Federal OfficerRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Flandreau, South Dakota, woman has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer.
Caley Studsdahl, age 24, was indicted on September 9, 2021. She appeared before U.S. Magistrate Judge Veronica L. Duffy on September 15, 2921, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to eight years in federal prison and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on April 21, 2020, Studsdahl forcibly assaulted, resisted, opposed, impeded, intimidated, and interfered with the Acting Chief of the Flandreau Santee Sioux Tribe while he was engaged in the performance of his official duties and said conduct involved physical contact.
The charge is merely an accusation and Studsdahl is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Flandreau Santee Sioux Tribe. Assistant U.S. Attorney Ann M. Hoffman is prosecuting the case.
Studsdahl was released on bond pending trial which has been set for November 23, 2021.
Dominican National Pleads Guilty to Social Security Misuse and Stealing Government BenefitsRead the Press Release
BOSTON – A Dominican national pleaded guilty today in federal court in Springfield in connection with using another individual’s identity to fraudulently obtain government benefits.
Andrea Perez, 48, pleaded guilty to false representation of a Social Security number and theft of government money. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Dec. 21, 2021. Perez was indicted in February 2021.
Perez used the identity of a Puerto Rican citizen to apply for and obtain Housing Choice Voucher Program, commonly known as Section 8, housing assistance benefits as well as to receive disability benefits from the Social Security Administration. As a result, from April 2019 through February 2021, Perez fraudulently received $17,380 in Section 8 housing assistance benefits and, from August 2017 through August 2018, approximately $12,570 in fraudulent Social Security benefits.
The charge of false representation of a Social Security number provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of theft of government money provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Jermaine Jack, Acting Special Agent in Charge of the Social Security Administration, Office of Inspector General, Boston Field Office; and Christina Scaringi, Special Agent in Charge of the Department of Housing and Urban Development, Office of Inspector General, made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Mendell’s Major Crimes Unit is prosecuting the case.
Dodge County Man Arrested, Charged with Impersonating a Federal AgentRead the Press Release
MINNEAPOLIS – A federal criminal complaint has been filed against a Dodge County man for impersonating a federal law enforcement officer, announced Acting United States Attorney W. Anders Folk.
According to court documents, on August 17, 2021, the FBI received a tip that Reyel Devon Simmons, 52, of Dodge Center, was impersonating a federal agent with the United States Department of Homeland Security. The investigation revealed that Simmons used the false name “Rey Reeves,” and regularly held himself out as a federal agent on social media. Simmons, who had nearly 10,000 followers on TikTok, used a profile photo that showed him wearing law enforcement gear and made several posts displaying law enforcement equipment, badges, and firearms, and referring explicitly and implicitly to himself as a federal agent.
According to court documents, Simmons is not, and has never been, employed by the United States Department of Homeland Security.
Anyone who has had an interaction with Simmons is asked to contact the FBI at 1-800-CALL-FBI or submit tips online at tips.fbi.gov.
This case is the result of an investigation conducted by the FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Dodge County Sheriff’s Office.
Assistant U.S. Attorney Alexander D. Chiquoine is prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Delaware County Man Charged with Sexually Exploiting a ChildRead the Press Release
SYRACUSE, NEW YORK – Jeremie Hoyt, age 41, of Davenport, New York, appeared today in federal court on charges that he sexually exploited a child.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Matthew Scarpino, Acting Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
The criminal complaint alleges that in November 2020, Hoyt produced a sexually explicit photograph and video of a 14-year-old child. Hoyt later distributed the image and video over the Internet to other users on a messaging application. United States Magistrate Judge Miroslav Lovric ordered Hoyt to be detained pending trial. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted, Hoyt faces a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 30 years, a maximum fine of $250,000, and a term of supervised release of between 5 years and life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Hoyt would also be required to register as a sex offender.
This case is being investigated by HSI, with assistance from the Delaware County District Attorney’s Office and the New York State Police. The case is being prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Delano Resident Pleads Guilty to Unlawfully Possessing FirearmRead the Press Release
FRESNO, Calif. — Christopher Howard, 33, of Delano, pleaded guilty today to being a felon in possession of a firearm, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, in the evening of April 28, 2021, police officers encountered Howard in Delano while he was carrying a bag that contained a loaded 9 mm caliber handgun and an additional loaded high-capacity magazine. Howard cannot lawfully possess firearms or ammunition because he has sustained numerous felony convictions, including for possession of a stolen vehicle, possession of stolen property, escape, and twice for second degree burglary.
This case was the product of an investigation by the Federal Bureau of Investigation and the Delano Police Department. Assistant U.S. Attorney Christopher D. Baker is prosecuting the case.
Howard is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Dec. 13, 2021. Howard faces a maximum term of 10 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.
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.
Columbus Man Pleads Guilty to Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss. – A Columbus man pleaded guilty to possession of a firearm by a convicted felon, announced Acting U.S. Attorney Darren J. LaMarca and Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
According to court documents, Greggory LaShawn Gavin, 44, was found in possession of a firearm by United States Marshals on November 9, 2020, while he was being served with an arrest warrant for an unrelated criminal charge. Gavin has four prior felony convictions. As a convicted felon, it is contrary to federal law for Gavin to possess any firearm.
Gavin is scheduled to be sentenced on December 9, 2021 and faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The United States Marshal Service and the Bureau of ATF are investigating the case.
Assistant U.S. Attorney Charles W. Kirkham 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.
Chicago, Illinois Man Pleads Guilty to Conspiracy to Distribute HeroinRead the Press Release
On September 21, 2021, Daryl Wheeler, Age 46, of Chicago, Illinois pleaded guilty to one count of conspiracy to distribute 100 grams or more of a mixture or substance containing a detectable amount of heroin, before United States District Court Judge John A. Ross.
With his plea Wheeler admitted that he and his associates distributed some 538 grams of heroin in the Charleston, Mississippi County Missouri area between September 14, 2017 and February 23, 2019.
Wheeler faces a minimum sentence of five years incarceration, up to a maximum sentence of forty years imprisonment. Wheeler’s sentencing is set for December 21, 2021 in Cape Girardeau, Missouri.
The case was investigated by the, Missouri State Highway Patrol, Southeast Missouri Drug Task Force and the Bureau of Alcohol, Tobacco, Explosives and Firearms. Assistant United States Attorney Timothy Willis handled the prosecution for the government.
Chevy Chase Man Facing Federal Indictment for Allegedly Posing as an Investment Advisor to Steal $750,0000 from a Non-Profit Organization Providing Services to Combat and Wounded Military VeteransRead the Press Release
Greenbelt, Maryland – A federal grand jury has returned an indictment charging Brian McQuade, age 70, of Chevy Chase, Maryland, for the federal charges of wire fraud related to a scheme to steal $750,000 from a non-profit organization providing services to military veterans. The indictment was returned on September 2, 2021 and unsealed today upon McQuade’s arrest. McQuade had an initial appearance scheduled today at 1:30 p.m., in U.S. District Court in Greenbelt before U.S. Magistrate Judge Charles B. Day.
The indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
According to the two-count indictment, from June 2018 until August 2021, McQuade perpetrated a fraud scheme to obtain money from a non-profit organization that provided services to combat and military veterans (the “Foundation”). During that time, McQuade allegedly held himself out as an investment advisor to clients, including the Foundation, falsely telling clients that he would manage investment accounts on their behalf. Instead, McQuade allegedly misappropriated the funds provided by clients, including the Foundation, for his personal use.
The indictment alleges that McQuade represented to the Foundation and its principals that he was worked as an investment advisor through an entity called Columbia Financial Advisors, LLP (“Columbia Financial”), which McQuade represented was the investment advisory arm affiliated with an established DC accounting firm. In reality, the Indictment alleges, McQuade had not been formally affiliated with the accounting firm since at least 2015. McQuade also represented to the Foundation that he was a licensed, registered investment advisor, including on an “Investment Advisory Agreement” he provided to the Foundation before the Foundation made its investment. McQuade allegedly told the Foundation that he would place the Foundation’s funds in a brokerage account that he would manage on behalf of the Foundation and McQuade provided the Foundation with a completed brokerage account application.
Based on McQuade’s representations, the Foundation wired McQuade $750,000 to invest on the Foundation’s behalf. According to the indictment, McQuade never opened a brokerage account on behalf of the Foundation and, instead, McQuade misappropriated the Foundation’s funds for his personal benefit, including transferring the funds to personal accounts and spending the money on restaurants, country club dues, luxury car payments, mortgages, and other personal items. To conceal his misappropriation of the Foundation’s funds, McQuade allegedly continued to make misrepresentations to the Foundation about their investment—even providing a fabricated account statement, to create the false appearance that the Foundation’s funds were held in an investment account for the benefit of the Foundation. To date, despite repeated requests, the Foundation has been unable to recover any of its funds.
If convicted, McQuade faces a maximum sentence of 20 years in federal prison for each of two counts of wire fraud. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner commended the FBI for its work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Caitlin R. Cottingham and Jessica C. Collins, who are prosecuting the federal case.
The Maryland U.S. Attorney’s Office and the FBI are continuing to investigate this matter. If you believe that you may have been a victim of or have information about McQuade or any other investment fraud scheme, please contact the FBI, Baltimore Field Office at 1-800-CALL-FBI.
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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Carterville Nurse Sentenced on Felony Drug and Health Care Fraud ChargesRead the Press Release
BENTON, Ill. – A Carterville man was sentenced on Thursday, September 16 to four years of probation for drug diversion and health care fraud charges. Joseph M. Mattingly, 42, was also ordered to pay a $500 fine along with a $200 special assessment.
According to court documents, Mattingly diverted Schedule II controlled substance (Hydrocodone) pills from a patient and defrauded the Medicare program of the cost of the pills.
In 2018, Mattingly was employed as a nurse with Progress Port, a center for adults with intellectual disabilities in Williamson County. Between August 20, 2018 and October 30, 2018, Mattingly obtained possession of 25 Hydrocodone pills he falsely claimed he dispended to a Progress Port resident, which he diverted for his own personal use.
Mattingly took three Hydrocodone pills intended for the same Progress Port resident and replaced those pills with Tylenol, an over-the-counter medication at three separate locations.The investigation was conducted by the United States Department of Health and Human Services, Office of Inspector General - Office of Investigations and the Illinois State Police Medicaid Fraud
Control Bureau.If you suspect or know of an individual or company that is not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of
Health and Human Services, Office of Inspector General, or you may call 1.800.447.8477.
Career Criminal Sentenced to Life in Federal Prison in Connection with Fort Myers Night Club ShootingRead the Press Release
Fort Myers, FL – U.S. District Judge Sheri Polster Chappell has sentenced Jonathan Anthony Reid (32, Gibsonton) to life in federal prison for possessing a firearm and ammunition as a previously convicted felon, in connection with the shooting of two men outside a Fort Myers night club in January 2020.
Reid was found guilty by a federal jury on March 11, 2021.
According to evidence presented at trial, in the early morning hours of January 29, 2020, Reid shot two men who were standing in front of the entrance of a night club on Cleveland Avenue in Fort Myers then fled the scene in a silver sedan with a stolen license plate. Reid made efforts to conceal his identity during the shooting by wearing a hooded sweatshirt, gloves, and a ski mask, but he later crashed and abandoned his getaway car while fleeing from the shooting scene. From his wrecked getaway car, law enforcement recovered a Glock .45 caliber handgun, nine rounds of .45 caliber ammunition, a camouflage ski mask, a hooded sweatshirt, and blue latex gloves. DNA analysis later revealed that Reid’s DNA profile matched DNA extracted from the ski mask, the sweatshirt, a ripped latex glove, and the firearm that was recovered from the vehicle. Three cellphones were also found in the car, all of which were later connected to Reid.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Fort Myers Police Department, the Federal Bureau of Investigation, the Florida Department of Law Enforcement, and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Simon R. Eth and Shannon Laurie.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Buffalo Man Arrested and Charged with Drug and Gun PossessionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. — U.S. Attorney James P. Kennedy, Jr. announced today that Luis Miguel Cruz Del Moral, 37, of Buffalo, NY, was arrested and charged by criminal complaint with possessing with intent to distribute a controlled substance and possessing a firearm in furtherance of a drug trafficking crime. The charges carry a minimum penalty of five years in prison, maximum penalty of life in prison and a $1,000,000 fine.
Assistant U.S. Attorney Meghan E. Leydecker, who is handling the case, stated that according to the complaint, on the morning of September 17, 2021, Buffalo Police, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and Federal Bureau of Investigation executed a New York State search warrant at Cruz Del Moral’s Ontario Street residence. During the search, investigators recovered five firearms, ammunition, a ballistic vest, two vials of suspected cocaine, drug packaging materials, and three scales with suspected cocaine residue.
Simultaneous to the execution of the Ontario Street search warrant, a separate search warrant was executed at a residence on South Lane in Buffalo. As investigators entered the residence, they encountered the defendant in the bathroom. In the toilet, law enforcement recovered a ripped-open plastic bag, and observed the toilet bowl lined with suspected cocaine. Investigators also found a loaded pistol in the bathroom. During the search, approximately 1 ½ grams of suspected cocaine, a large cocaine press, a small cocaine press, a digital scale with suspected cocaine residue, and $7,111 in United States currency was seized. A rifle, two magazines, ammunition, and glassine envelopes were also recovered from Cruz-Del Moral’s vehicle. The defendant was arrested at the scene.
The complaint is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. DeVito, New York Field Division; the Federal Bureau of Investigation, Safe Streets Task Force, under the direction of Special Agent-in-Charge Stephen Belongia; and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Browning man admits meth trafficking on Blackfeet Indian ReservationRead the Press Release
GREAT FALLS – A Browning man accused of being a methamphetamine dealer on the Blackfeet Indian Reservation admitted to a trafficking crime today, Acting U.S. Attorney Leif M. Johnson said.
Steven Roy DeCarlo, 31, pleaded guilty to possession with intent to distribute controlled substances. DeCarlo faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris set sentencing for Jan. 13. DeCarlo was detained pending further proceedings.
In court documents, the government alleged that law enforcement had several encounters with DeCarlo in 2020, including responding on July 31, 2020 to a report of gunshots in a field on the reservation. Officers saw two vehicles at the scene, one of which drove away. DeCarlo was in his vehicle, which remained. During a consent search of the vehicle and DeCarlo, officers found drug paraphernalia and $500. Meanwhile, the second vehicle, driven by a person identified as Jane Doe, returned. Officers executed a search warrant on that vehicle and found $1,500 and meth.
DeCarlo told investigators that he and Jane Doe were involved in getting meth, which Jane Doe had been distributing. DeCarlo told officers he had financed multiple purchases of meth that Jane Doe had made with the supplier. DeCarlo later admitted to personally bringing a pound of meth from out of state to the reservation for distribution. A pound of meth is the equivalent of 3,624 doses.
Assistant U.S. Attorney Ethan R. Plaut is prosecuting the case, which was investigated by the FBI, Homeland Security Investigations and Blackfeet Law Enforcement Services.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Brockton Man Pleads Guilty to Being a Felon in Possession of a Firearm and AmmunitionRead the Press Release
BOSTON – A Brockton man pleaded guilty on Friday, Sept. 17, 2021 to illegally possessing a Smith & Wesson, .40 caliber pistol and ammunition.
David Dardy, 32, pleaded guilty to one count of possessing a firearm and ammunition while being a convicted felon. U.S. Chief District Court Judge F. Dennis Saylor IV scheduled sentencing for Feb. 7, 2022. Dardy was indicted in November 2020.
On or about Sept. 19, 2020, Dardy possessed a Smith & Wesson, .40 caliber pistol. The firearm was loaded with five rounds of .40 caliber “Federal 40 S&W” ammunition, five rounds of .40 caliber “Perfecta 40 S.W.” ammunition, two rounds of .40 caliber “PPU 40 S&W” ammunition and one round of .40 caliber “FC NR 40 S&W” ammunition.
The charge of being a convicted felon in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Acting Commissioner Gregory Long made the announcement. Assistant U.S. Attorney Kaitlin R. O’Donnell of Mendell’s Organized Crime and Gang Unit is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Boulder City Man Sentenced for Assaulting Wife at Lake Mead National Recreation AreaRead the Press Release
LAS VEGAS, Nev. – A Boulder City man — with a history of domestic violence — was sentenced today to 20 months in prison for assaulting his wife when they were camping together at Lake Mead National Recreation Area.
According to court documents and evidence presented at trial, on September 21, 2020, Michael David Thompson, 66, repeatedly punched the victim’s face and body while camping at the Boulder Beach Campground within the Lake Mead National Recreation Area. The victim suffered significant injuries.
In May 2021, following a three-day trial, a federal jury convicted Thompson of one count of felony assault resulting in substantial bodily injury to a spouse or intimate partner. In addition to the prison term, U.S. District Judge Jennifer A. Dorsey sentenced Thompson to two years of supervised release.
Thompson was previously convicted in 2008 of misdemeanor battery and felony intimidation of a witness for assaulting his then-girlfriend. While on probation, he committed a second felony battery against the same victim. In 2001, he was convicted of battery against a child.
Acting U.S. Attorney Christopher Chiou for the District of Nevada made the announcement.
This case was investigated by the National Park Service. Special Assistant U.S. Attorney Rachel Kent and Assistant U.S. Attorney Joshua Brister prosecuted the case.
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Boston Man Sentenced for Fentanyl and Cocaine ConspiracyRead the Press Release
BOSTON – A Boston man was sentenced today in federal court in Boston for his involvement in a drug trafficking conspiracy.
Sandro Pereira Cabral, 25, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to one year in prison and three years of supervised release. On May 19, 2021, Cabral pleaded guilty to conspiracy to distribute and to possess with intent to distribute 40 grams or more of fentanyl and cocaine.
In October 2017, Cabral delivered approximately 4.95 grams of fentanyl to an undercover officer in Boston. Cabral was charged as part of an investigation into a drug trafficking organization distributing large quantities of fentanyl, cocaine and other controlled substances in the greater Boston area.
Acting United States Attorney Nathaniel R. Mendell; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Acting Commissioner Gregory Long made the announcement today. Assistant U.S. Attorneys Corey Steinberg and John Mulcahy of Mendell’s Criminal Division prosecuted the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Bergen County Woman Admits Embezzling Money from Guided Tour Company and Subscribing to False Tax ReturnsRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, woman today admitted participating in a multi-year embezzlement scheme and subscribing to a false personal income tax return, Acting U.S. Attorney Rachael A. Honig announced.
Estela Laluf, 76, of River Edge, New Jersey, pleaded guilty by videoconference before U.S. District Judge Julien Xavier Neals to an information charging her with one count of wire fraud and one count of subscribing to a false tax return.
According to documents filed in this case and statements made in court:
Between October 2010 and August 2016, Laluf held a management position at a New Jersey guided-tour company. During that time, Laluf and another employee, who held an accounting position at the company and had authority to write checks against the company’s bank accounts, devised a scheme to embezzle funds from the company. Laluf would direct the employee to write company checks to actual company employees and contractors, which did not reflect any actual work or services done by those individuals. The employee would then cash these checks, and Laluf and the employee would convert the resulting funds to their personal use. Laluf and the employee embezzled hundreds of thousands of dollars from the company. Laluf then fraudulently omitted the proceeds of the embezzlement scheme from her tax year 2016 tax return.
The charge of wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine. The charge of subscribing to a false tax return carries a maximum penalty of three years in prison and a $250,000 fine. Sentencing is scheduled for Jan. 24, 2022.
Acting U.S. Attorney Honig credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero, and special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Andrew M. Trombly of the Cybercrime Unit in Newark.