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Wednesday 4 August 2021
Jury Convicts Former NASA Subcontractor of FraudRead the Press Release
ALEXANDRIA, Va. – On Tuesday, a federal jury convicted a former government subcontractor who completed work at NASA’s Kennedy Space Center of fraud charges relating to the Small Business Administration’s women-owned small business program.
“The evidence at trial demonstrated that the defendant compromised the integrity of the contracting process by falsely representing the ownership and control of his company in order to obtain lucrative government contracts,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “The steadfast dedication of the trial team and our partner agencies in this case serves as another example of EDVA’s continued commitment to a robust white-collar enforcement program.”
According to court records and evidence presented at trial, Kevin N. Smith, 61, of Rockledge, Florida, served as the general manager of SDB Engineers & Constructors, a Florida-based subcontractor that, between 2014 and 2015, completed work on two large NASA prime contracts. Smith participated in a fraudulent scheme to represent SDB as a woman-owned small business when, in reality, it did not qualify as a woman-owned small business because no woman controlled its daily business operations. In furtherance of the scheme, Smith falsely certified SDB as a woman-owned small business to the federal government and to NASA prime contractors. The scheme resulted in SDB receiving more than $6 million in fraudulently obtained contract payments with a total profit of approximately $1 million during Smith’s tenure at the company.
Smith was convicted of one count of conspiracy to commit wire fraud and five counts of wire fraud. Smith faces a maximum penalty of 20 years in prison when sentenced. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; National Aeronautics and Space Administration (NASA) Inspector General Paul K. Martin; and Hannibal “Mike” Ware, Inspector General of the Small Business Administration (SBA), made the announcement after U.S. District Judge Anthony J. Trenga accepted the verdict.
Assistant U.S. Attorney Daniel Young and Special Assistant U.S. Attorney Ryan Faulconer are prosecuting the case. Former Assistant U.S. Attorney Samantha Bateman previously prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-74.
Jacksonville Man Sentenced to 35 Years for Enticing and Sexually Abusing a MinorRead the Press Release
RALEIGH, N.C. – A Jacksonville man was sentenced today to 420 months in prison followed by 10 years of supervised release for enticing and sexually abusing a minor. On August 17, 2020, Emilio R. Moran pled guilty to the charges.
According to court documents and other information presented in court, Moran, 39, enticed a minor into a prolonged sexual relationship while living in Okinawa, Japan. Moran, a former U.S. Marine, was working in Okinawa at the time of the crime. Moran used text messages and gifts to entice the minor into the illicit relationship. The sexual relationship ended when the parents of the minor discovered it and reported the crime to investigators with the U.S. Air Force Office of Special Investigations.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division and G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The United States Air Force Office of Special Investigations and Homeland Security Investigations investigated the case and U.S. Department of Justice Child Exploitation and Obscenity Section Trial Attorney Charles Schmitz and Assistant U.S. Attorney John Parris prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-cr-00479-D-1.
Inmate at USP Lee Pleads Guilty to Unlawfully Possessing WeaponRead the Press Release
ABINGDON, Va., – Acting United States Attorney Daniel P. Bubar announced today that Michael Duncan, an inmate at the USP Lee in Jonesville, Virginia, pleaded guilty to unlawfully possessing a weapon inside the prison. Duncan pleaded guilty to one count of possessing contraband in a United States prison, that contraband being a weapon.
According to court documents and evidence presented at the guilty plea hearing by Special Assistant United States Attorney Christine Hummert, Duncan, 29, was subjected to a search by prison officials, and two weapons were found inside of his left front shorts pocket. One weapon was approximately 6.5 inches in length and the other was approximately 7.5 inches in length. Both weapons were made of metal, sharpened at one end, with a handle made of white fabric on the other end.
Duncan faces up to five years imprisonment and a fine of up to $250,000, and will be sentenced on November 30, 2021.
The investigation of the case was conducted by the United States Bureau of Prisons. Special Assistant United States Attorney Christine Hummert is prosecuting the case for the United States.Hot Springs Village Businessman Pleads Guilty to Not Paying Employment Taxes and Failure to File A Tax ReturnRead the Press Release
HOT SPRINGS, Ark.—A Hot Springs Village business owner pleaded guilty yesterday to one count of willfully failing to pay over employment taxes and one count of failing to file a tax return.
Chief U.S. District Judge Susan O. Hickey presided over the plea hearing, in which Donald Lee Owen, 61, waived indictment by a grand jury and pleaded guilty to a criminal information charging him with violating two different federal statutes.
According to court documents, Owen owned and operated National Golf Classics, Inc. also known as All American Classics, located in Hot Springs Village. The company produced sports memorabilia for use in charity auctions and conducted charity auctions. From 2010 through 2018, Owen’s company paid wages to employees and withheld employment taxes from those wages. These taxes included federal income tax, Social Security tax, and Medicare, also known as the "trust fund" taxes. Owen hired an accounting firm to calculate the taxes due and to prepare the IRS Forms 941, Employers Quarterly Federal Tax Return, for reporting those taxes to the IRS. However, Owens did not actually file those forms with the IRS, as he was required to do, nor did he pay over the employment taxes due to the IRS.
From 2010 through 2018, Owen willfully failed to file Forms 941 with the IRS, and to pay the at least $818,158 in employment taxes to the IRS, despite having ample funds to do so.
Court documents also reveal that during the period when the employment taxes were due to be paid to the IRS, Owen chose to pay millions of dollars to his company’s creditors, $800 per month for a tract of real estate having nothing to do with the company and transferred $1,000 per month to a family member to pay his share on a cabin they were buying on the Buffalo River.
In addition, Owen failed to pay $430,000 of the employer portions of the employment taxes and Federal Unemployment Tax Act taxes. Owen also failed to pay $169,883 to the state of Arkansas that were withheld from his employees' wages. This negatively impacted multiple employees who did not receive credit with the Social Security Administration for wages earned and taxes withheld. At the same time, Owen used the additional funds to support a lavish lifestyle, including purchasing and improving a luxury home in Hot Springs Village, buying 32.6 acres in Newton County, a cabin on the Buffalo River, a 2017 GMC Yukon SUV for which he paid $64,206, and a 2016 39-foot Tiffin Allegro recreational vehicle with a list price of $188,099.
When audited by the Arkansas Department of Finance on two occasions—on September 19, 2013 and on July 19, 2018—Owen falsely told the auditors he did not have regular employees, but instead used family and friends to help him during busy season. However, when approached by employees who had not received credit with the Social Security Administration for wages earned and employment taxes withheld, Owen admitted he had not reported or paid over the employment taxes to the IRS.
Owen’s second charge relates to his willful failure to file a personal federal income tax return for the year 2018. Owen acknowledged he knew he was required to file a tax return and that he willfully failed to do so. Additionally, Owen failed to file and pay $301,544 of his federal and $69,405 of his Arkansas state personal income taxes for the years 2008 through 2018. Finally, Owen also failed to file and his company’s federal corporate income taxes for the years 2014 through 2018.
As a result of his guilty plea, Owen may be sentenced to a maximum of six years in prison. The court will determine his sentence at a later date, after reviewing a pre-sentence investigation report prepared by the U.S. Probation Office and considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The Internal Revenue Service-Criminal Investigations are investigating the case.
Assistant U.S. Attorney Steven Mohlhenrich is prosecuting the case for the United States.
Holts Summit Man Indicted for Armed RobberyRead the Press Release
JEFFERSON CITY, Mo. – A Holts Summit, Missouri, man has been indicted by a federal grand jury for the armed robbery of a Dollar General store in Jefferson City, Mo.
Tyler Steven Mitchell Williams, 24, was charged in a two-count indictment returned by a federal grand jury in Jefferson City on Tuesday, Aug. 3.
The federal indictment alleges that Williams used a firearm to rob the Dollar General store at 1414 Missouri Blvd., Jefferson City, on July 7, 2021. Law enforcement officers identified Williams and his vehicle based on surveillance video. Officers located and arrested him a few hours after the robbery occurred.
The indictment also charges Williams with one count of brandishing and using a firearm during a crime of violence. Williams allegedly used a Smith & Wesson 9mm handgun in the robbery.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the Jefferson City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Four MS-13 Members Indicted for 10 Murders, Kidnapping and Racketeering ChargesRead the Press Release
Four alleged members of La Mara Salvatrucha (MS-13) have been charged in a federal superseding indictment with a racketeering conspiracy involving multiple murders, kidnappings and burglaries, as well as drug trafficking.
The individuals charged in the superseding indictment are: Luis Reynaldo Reyes-Castillo, 27, aka Molesto; David Arturo Perez-Manchame, 22, aka Herbi, aka Walter Melendez; Joel Vargas-Escobar, 25, aka Mumia; and Alexander De Jesus Figueroa-Torres, 25.
According to court documents, MS-13 is a national and transnational gang composed largely of individuals of Salvadoran or other Central American descent. MS-13 has more than 10,000 members regularly conducting gang activities in at least 10 states and Washington, D.C., with thousands more conducting gang activities in Central America and Mexico. The purpose of the MS-13 enterprise includes preserving, promoting, and protecting the power, territory, and profits of the enterprise through the use of intimidation and violence, including murder, and enriching members and associates of the enterprise through criminal activities, including breaking into houses and stealing firearms, jewelry, cash, and other items of value, and selling narcotics. MS-13 is organized by subsets known as “cliques,” and each clique typically has one or more leaders, commonly referred to as “shot callers.”
The superseding indictment charges alleged members of the Parkview clique operating in Las Vegas, Nevada, with Racketeering (RICO) Conspiracy and multiple counts of murder and kidnapping in aid of racketeering, as well as firearms charges. More specifically, the indictment charges the following acts of violence occurring over an approximately 12-month period:
Date
Offense/Predicate Act
March 3, 2017
D.C. murdered
Dec. 31, 2017
R.G. murdered
Jan. 18, 2018
C.P. kidnapped and murdered
Jan. 21, 2018
A.S. kidnapped and murdered
Feb. 2, 2018
J.R. murdered
Feb. 6, 2018
J. H. murdered
Feb. 6, 2018
R.O. murdered
Feb. 6, 2018
J.C. shot and wounded
Mid-February, 2018
I.T. kidnapped and murdered
Mid-February, 2018
R.P. kidnapped and murdered
March 1, 2018
E.R. kidnapped and murdered
“The Criminal Division and our federal, state and local partners are committed to dismantling violent gangs like MS-13,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The violence alleged in the superseding indictment in this case is truly shocking. The murder spree carried out by MS-13 in Las Vegas clearly shows the danger posed by organized street gangs like MS-13.”
“By significantly undermining MS-13’s ability to engage in violence in Las Vegas, the hard work and dedication of our law enforcement partners have made our communities safer,” said Acting U.S. Attorney Christopher Chiou for the District of Nevada. “Our office remains committed to protecting our neighborhoods against gang violence and other criminal activity by prosecuting dangerous transnational criminal organizations like MS-13.”
“Taking violent offenders off the street should send a message to MS-13 members and their associates that violence and murder will not be tolerated in Las Vegas,” said Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Field Office. “Working with our local partners, we are committed to staying in the fight until this plague is purged from our communities.”
Reyes-Castillo and Perez-Manchame are scheduled for their initial court appearance on Tuesday, Aug. 10 before U.S. Magistrate Judge Elayna J. Youchah of the U.S. District Court for the District of Nevada. If convicted, they face a mandatory sentence of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI and Las Vegas Metropolitan Police Department Homicide Bureau are investigating the case.
Trial attorneys Jeremy Franker and Chris Taylor of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Shaheen Torgoley of the District of Nevada are prosecuting the case.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Four MS-13 Members Indicted for 10 Murders, Kidnapping and Racketeering ChargesRead the Press Release
LAS VEGAS, Nev. – Four alleged members of La Mara Salvatrucha (MS-13) have been charged in a federal superseding indictment with a racketeering conspiracy involving multiple murders, kidnappings and burglaries, as well as drug trafficking.
The individuals charged in the superseding indictment are: Luis Reynaldo Reyes-Castillo, 27, aka Molesto; David Arturo Perez-Manchame, 22, aka Herbi, aka Walter Melendez; Joel Vargas-Escobar, 25, aka Mumia; and Alexander De Jesus Figueroa-Torres, 25.
According to court documents, MS-13 is a national and transnational gang composed largely of individuals of Salvadoran or other Central American descent. MS-13 has more than 10,000 members regularly conducting gang activities in at least 10 states and Washington, D.C., with thousands more conducting gang activities in Central America and Mexico. The purpose of the MS-13 enterprise includes preserving, promoting, and protecting the power, territory, and profits of the enterprise through the use of intimidation and violence, including murder, and enriching members and associates of the enterprise through criminal activities, including breaking into houses and stealing firearms, jewelry, cash, and other items of value, and selling narcotics. MS-13 is organized by subsets known as “cliques,” and each clique typically has one or more leaders, commonly referred to as “shot callers.”
The superseding indictment charges alleged members of the Parkview clique operating in Las Vegas, Nevada, with Racketeering (RICO) Conspiracy and multiple counts of murder and kidnapping in aid of racketeering, as well as firearms charges. More specifically, the indictment charges the following acts of violence occurring over an approximately 12-month period:
Date
Offense/Predicate Act
March 3, 2017
D.C. murdered
Dec. 31, 2017
R.G. murdered
Jan. 18, 2018
C.P. kidnapped and murdered
Jan. 21, 2018
A.S. kidnapped and murdered
Feb. 2, 2018
J.R. murdered
Feb. 6, 2018
J. H. murdered
Feb. 6, 2018
R.O. murdered
Feb. 6, 2018
J.C. shot and wounded
Mid-February, 2018
I.T. kidnapped and murdered
Mid-February, 2018
R.P. kidnapped and murdered
March 1, 2018
E.R. kidnapped and murdered
“The Criminal Division and our federal, state and local partners are committed to dismantling violent gangs like MS-13,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The violence alleged in the superseding indictment in this case is truly shocking. The murder spree carried out by MS-13 in Las Vegas clearly shows the danger posed by organized street gangs like MS-13.”
“By significantly undermining MS-13’s ability to engage in violence in Las Vegas, the hard work and dedication of our law enforcement partners have made our communities safer,” said Acting U.S. Attorney Christopher Chiou for the District of Nevada. “Our office remains committed to protecting our neighborhoods against gang violence and other criminal activity by prosecuting dangerous transnational criminal organizations like MS-13.”
“Taking violent offenders off the street should send a message to MS-13 members and their associates that violence and murder will not be tolerated in Las Vegas,” said Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Field Office. “Working with our local partners, we are committed to staying in the fight until this plague is purged from our communities.”
Reyes-Castillo and Perez-Manchame are scheduled for their initial court appearance on Tuesday, Aug. 10 before U.S. Magistrate Judge Elayna J. Youchah of the U.S. District Court for the District of Nevada. If convicted, they face a mandatory sentence of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI and Las Vegas Metropolitan Police Department Homicide Bureau are investigating the case.
Trial attorneys Jeremy Franker and Chris Taylor of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Shaheen Torgoley of the District of Nevada are prosecuting the case.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation.
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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Former Worcester Housing Official Convicted of Fraud ChargesRead the Press Release
BOSTON – A former employee of the City of Worcester’s Housing Development Office and Executive Office of Economic Development was convicted by a federal jury yesterday in connection with a $2.3 million fraud scheme relating to the redevelopment of a multi-family property in Worcester.
Jacklyn M. Sutcivni, 47, of Dracut, was convicted of conspiracy to commit wire fraud, wire fraud, conspiracy to defraud the United States and false claims. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Dec. 14, 2021.
In August 2016, Sutcivni was indicted along with James E. Levin, a Natick real estate developer and attorney. Levin pleaded guilty in September 2020 and was sentenced on March 30, 2021 to 37 months in prison, three years of supervised release and ordered to pay forfeiture of $1,955,000.
“The defendant’s job was to distribute public funds to develop safe and affordable housing for Worcester, but as the jury found, she used her position as the City’s Director of Housing to allow $2.3 million in taxpayer money to go to a private developer – for work that was never even done,” said Acting United States Attorney Nathaniel R. Mendell. “She abused the trust placed in her at the expense of the people of Worcester and their bid to revitalize their neighborhoods.”
“All around us, we see the country in the grips of an affordable housing crisis. Neighborhood Stabilization and HOME Program funds are HUD monies that are supposed to be used to eliminate blight, and repair or rehabilitate housing for our low- and middle-income neighbors,” said Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of the Inspector General, Northeast Region. “Defendant Sutcivni misused her position when she approved the payment of HUD funds for work she knew had not been done, resulting in the waste of hundreds of thousands of dollars meant to create affordable housing. This guilty verdict reinforces the message that our communities will not tolerate those who undermine the administration of precious HUD dollars earmarked for the creation of affordable housing for our citizens. The HUD Office of Inspector General thanks our partnership with the Federal Bureau of Investigation and the U.S. Attorney’s Office for their committed and steadfast efforts in bringing this matter to a just conclusion.”
“City employees, regardless of their position are supposed to serve their fellow citizens, not steal from them. But Jacklyn Sutcivini did exactly that, in conspiring with James Levin, to fraudulently obtain $2.3 million from the City of Worcester for their own personal enrichment at the expense of hard-working taxpayers. This verdict serves as a stark reminder that there are serious consequences for fraudulently siphoning public funds and of the FBI’s commitment to protecting the integrity of government at all levels from the spectra of public corruption,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division.
The City of Worcester distributes grant funds on behalf of U.S. Department of Housing and Urban Development (HUD) and Massachusetts Department of Housing and Community Development (DHCD). Sutcivni, as part of her job with the City of Worcester’s Housing Development Office, was responsible for reviewing payment requests for HUD grant funds. From July 2010 to September 2011, Sutcivni approved seven fraudulent HUD grant funding requests submitted by Levin for work he falsely claimed to have completed on a building he managed and associated costs. Sutcivni approved the payment requests despite knowing they were fraudulent. As a result, the City of Worcester issued approximately $2,365,050 in federal funds to Levin that he was not entitled to. After the City issued the payment, Sutcivni or other City officials submitted reimbursement requests to HUD or DHCD for HUD funds.
The charges of conspiracy to commit wire fraud and wire fraud each provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $1 million, or twice the gross gain or loss, whichever is greater. The charge of conspiracy to defraud the United States provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss, whichever is greater. The charge of submission of false claims 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 indictment also seeks forfeiture of $2,365,050. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Mendell, HUD OIG Northeast Region SAC and FBI Boston Division SAC Bonavolonta made the announcement. Assistant U.S. Attorneys Michelle L. Dineen Jerrett and Danial E. Bennett of Mendell’s Worcester Branch Office are prosecuting the case.
Former Regional Director of Non-Profit Corporation Sentenced for Bribery Conspiracy Involving Federal FundsRead the Press Release
LAS VEGAS, Nev. – A former regional director of community development for the National Community Stabilization Trust — formed in 2008 in response to the national mortgage-housing foreclosure crisis — was sentenced Tuesday to one year and one day in prison for conspiracy to commit bribery concerning programs receiving federal funds.
“The U. S. Department of Housing and Urban Development (HUD) entrusts non-profit organizations to administer HUD programs honestly and creatively to help improve the housing market. Their expertise is critical to stabilizing the nation’s housing economic recovery. When fraud is perpetrated against HUD, a significant impact is made on that recovery. One of the primary goals of the HUD Office of Inspector General (OIG) is to investigate fraud, waste, and abuse, and present findings to prosecutors; such findings aid in maintaining the integrity of HUD programs. Barajas’ actions violated that trust and he must now face the consequences,” stated Michael Gibson, Special Agent in Charge, HUD OIG, Los Angeles, California.
According to court documents, Sergio Barajas, 54, of Chino Hills, California, worked for the Trust as a regional representative over the western United States. His duties included helping the Trust and U.S. Department of Housing and Urban Development (HUD) non-profit organizations locate and buy foreclosed homes under a joint program between the Trust and HUD.
As part of the conspiracy:
• Heartland Coalition agreed to pay Barajas for his influence to help Heartland Coalition participate in the program. From 2011 to late 2012, Heartland Coalition paid Barajas a total of $186,025 and purchased 626 houses in California, Nevada, and Arizona.
• In 2011, Positive Housing Equations LLC agreed to pay Barajas for his influence to provide its affiliate company, Alliance Revitalization Communities (ARC), with access to houses available through the program. Between 2011 and 2014, ARC bought 167 houses, and Positive Housing Equations LLC paid Barajas a total of approximately $158,000.
• In 2013 and 2014, a real estate agent in Arizona agreed to pay Barajas for each house that her client bought through the Trust. The real estate agent paid Barajas a total of $36,711 to Barajas for at least 32 properties.
Barajas pleaded guilty in March 2021 to one count of conspiracy to commit bribery concerning programs receiving federal funds. In addition to the term of imprisonment, U.S. District Judge Richard F. Boulware II sentenced Barajas to three years of supervised release.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Michael Gibson of HUD OIG, Los Angeles, California, made the announcement.
This case was investigated by HUD OIG. Assistant U.S. Attorney Daniel Schiess prosecuted the case.
To submit allegations of fraud, waste, abuse, mismanagement or whistleblower related matters within HUD and HUD-funded programs to the OIG, the public can either call the HUD OIG Hotline number at 1-800-347-3735 or make an online report at https://www.hudoig.gov/hotline/report-fraud.
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Former Postal Carrier Sentenced for Discarding Mail in WoodsRead the Press Release
SYRACUSE, NEW YORK – Tanner Brown, 25, of Cobleskill, New York, was sentenced today in federal court in Syracuse to 18 months of Probation and ordered to pay a $1,000 fine, after previously pleading guilty to one felony count of delaying the mail, announced Acting United States Attorney Antoinette T. Bacon and Special Agent in Charge Matthew Modafferi, United States Postal Service-Office of Inspector General (USPS-OIG), Northeast Area Field Office.
As a part of his prior guilty plea, Brown admitted that between January 1, 2019, and July 24, 2019, while working as a postal carrier for the United States Postal Service, he intentionally detained and failed to deliver 5,833 pieces of mail. Instead of delivering this mail to its intended recipients in Onondaga County, Brown drove it to Sharon Springs, New York, where he dumped some of it in a grassy field and the rest of it in a wooded area underneath a pile of discarded tires. When agents recovered the mail from those locations, they discovered that much of it was First-Class Mail and that most of it was wet, dirty, and/or covered in bugs. The Postal Service eventually delivered as much of the recovered mail as it could, and Brown is no longer employed by the Postal Service.
Brown was also ordered to serve 100 hours of community service as part of his sentence, which was pronounced by Chief United States District Judge Glenn T. Suddaby, who presides over the case.
This case was investigated by USPS-OIG and prosecuted by Assistant U.S. Attorney Michael F. Perry.
Former NYPD Sergeant Pleads Guilty to 9/11 Benefits FraudRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced today that SALLY SPINOSA pled guilty in Manhattan federal court to one count of theft of public money related to her false application for benefits related to the attack on New York on September 11, 2001. SPINOSA pled guilty before U.S. District Judge Paul A. Engelmayer.
U.S. Attorney Audrey Strauss said: “As she has now admitted, Sally Spinosa stole money for programs intended to benefit the brave men and women of the NYPD, and first-responders across the city, who were injured in the rescue and recovery efforts following September 11, 2001. She did so by repeatedly lying about the time she spent in the rescue and recovery effort, and will now face the consequences of such brazen lies.”
According to the allegations in the Complaint, court filings, and statements during court proceedings:
Following the attacks on New York and Washington, D.C., on September 11, 2001, Congress created certain programs to provide monetary compensation and medical treatment for victims of the attacks. Specifically, Congress created the September 11th Victim Compensation Fund (the “VCF”) to provide compensation for any individual who suffered physical harm or was killed as a result of either the September 11th attacks or the debris removal and recovery efforts that took place in the immediate aftermath of the attacks. Congress also created the World Trade Center Health Program (“WTCHP”) to provide, among other things, monitoring and medical treatment benefits for individuals who have or may develop health conditions due to exposure at disaster or recovery sites tied to the September 11th attacks. Both the VCF and the WTCHP are funded by Congress. An individual can be deemed eligible for a VCF award either by submitting medical documents and proof-of-presence documents directly to the VCF, or by going through the WTCHP’s process for having a medical condition certified.
SALLY SPINOSA served as an NYPD officer from in or about July 1986 until July 2019, and was a sergeant in the investigations unit of the NYPD’s Patrol Services Bureau of Staten Island (the “Staten Island Investigations Unit”) on September 11, 2001. In 2010, SPINOSA participated in a screening interview with the WTCHP in which she falsely stated that she worked for hundreds of hours at the Fresh Kills Landfill in Staten Island, New York (the “Landfill”), from September 2001 to June 2002. Similarly, in 2014, SPINOSA applied for a monetary award from the VCF, falsely claiming that she was at the Landfill for two hours each day for 62 straight days from September 20, 2001, to November 20, 2001. In support of her application, SPINOSA submitted proof-of-presence documents, including an affidavit purportedly signed by one of her supervisors at the Staten Island Investigations Unit (“Officer-1”) stating that Officer-1 frequently visited the Landfill with SPINOSA to supervise subordinates (the “Officer-1 Affidavit”).
However, contrary to SPINOSA’s representations to the WTCHP and the VCF, in fact SPINOSA spent little to no time at the Landfill. Indeed, during much of the time SPINOSA claimed to be working at the Landfill, SPINOSA was pregnant and doing limited work outside the Staten Island Investigations Unit’s offices, or was out of the office entirely on parental leave. Moreover, the Officer-1 Affidavit that SPINOSA submitted in support of her VCF application was fraudulent and was never signed by Officer-1.
Nevertheless, and based on her false and fraudulent misrepresentations, in or around 2017 the WTCHP granted her benefits. The WTCHP has since paid for certain medical visits and prescription drugs for SPINOSA. While SPINOSA’s original fraudulent application to the VCF was denied in 2014, she reapplied in 2017 and 2018 relying on the same false and fraudulent information. SPINOSA’s VCF claim remains pending.
* * *
SPINOSA, 55, of Freehold, New Jersey, pled guilty to one count of theft of public money, which carries a maximum penalty of 10 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as the defendant’s sentence will be determined by the judge.
SPINOSA is scheduled to be sentenced by Judge Engelmayer on December 1, 2021, at 10:30 a.m.
Ms. Strauss praised the investigative work of the NYPD’s Internal Affairs Bureau and DOJ-OIG.
This case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Kedar S. Bhatia and Catherine E. Ghosh are in charge of the prosecution.
Former NEX Guam Employee Sentenced to 24 Months in Federal PrisonRead the Press Release
Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Jesse Cruz Camacho, age 57, from Harmon, Guam was sentenced in the United States District Court of Guam to twenty-four months imprisonment for Theft of Government Property, in violation of 18 U.S.C. § 641. The Court also ordered two years of supervised release following imprisonment, 100 hours of community service, restitution to the Navy Exchange Guam in the amount of $261,036.96, and a mandatory $1,375.00 special assessment fee.
Jesse Cruz Camacho was employed as a chargeback clerk with the Navy Exchange Guam (NEX). From June 2016 to October 2019, Camacho used his knowledge and access at the NEX to steal over $250,000 worth of electronics, laptops, and other items. Camacho then disposed of the itemsby selling them on a Facebook social media account and by other means. NEX Loss Prevention discovered the thefts and reported the case to the United States Naval Criminal Investigative Service (NCIS).
U.S. Attorney Anderson stated, “This prosecution and the custodial sentence imposed highlight the seriousness of this crime. We commend NEX Loss Prevention for their vigilance and investigative efforts. Their partnership with NCIS serves to effectively detect and deter criminal conduct involving the loss of federal property.”
This case was investigated by the United States Naval Criminal Investigative Service and prosecuted by Benjamin K. Petersburg, Assistant United States Attorney in the District of Guam.
Former Metro Employee of Trust Bank Sentenced to Serve 30 Months in Federal Prison for $2.3 Million Embezzlement and False Federal Income Tax ReturnRead the Press Release
OKLAHOMA CITY – Yesterday, JORDAN GLEN YOUNG, of Oklahoma City, was sentenced to 30 months in federal prison for wire fraud and signing a false federal income tax return, in connection with a $2.3 million embezzlement from an Oklahoma City trust bank, announced Acting U.S. Attorney Robert J. Troester.
"Young abused the trust placed in him as a trust administrator by stealing more than $2.3 million from trust accounts through repeated diversion of funds for his personal benefit over more than a four-year period," said Acting U.S. Attorney Troester. "Young then compounded his greed by attempting to hide the ill-gotten gains when he cheated the IRS by failing to pay more than $500,000 in taxes owed on the illegal income. I commend the agents and prosecutors who worked hard to bring Young to justice."
On December 21, 2020, Young was charged by Information with one count of wire fraud and one count of filing a false federal income tax return. From 2006 through March 2020, Young worked at an Oklahoma City trust bank as a Trust Administrative Officer. Young oversaw trust accounts and distributed funds from those accounts to the beneficiaries as needed.
On February 22, 2021, Young pleaded guilty to making an unauthorized distribution, in the amount of $60,706.53, to his personal checking account from a trust account he was managing in October 2018. As part of his plea, Young admitted that he embezzled funds from his former employer from December 2015 through March 2020, and stipulated that the total loss to the trust bank from his embezzlement scheme was $2,323,036.91.
In addition to wire fraud, Young also pleaded guilty to signing a false federal income tax return. He admitted that on April 15, 2019, he signed a personal federal income tax return for the 2018 calendar year that he knew was false because it reported only $114,439 in total income. At the plea hearing, Young admitted that he omitted on the 2018 tax return thousands of dollars of embezzled income from the trust bank.
At yesterday’s sentencing, Chief United States District Judge Timothy D. DeGiusti sentenced Young to 30 months of imprisonment, followed by three years of supervised release. Chief Judge DeGiusti also ordered Young to pay restitution to the trust bank, in the amount of $2,323,036.91, and to pay restitution for tax loss to the Internal Revenue Service in the amount of $500,822. Young must report to federal prison on September 8, 2021.
This case was the result of an investigation by the Federal Bureau of Investigation’s Oklahoma City Field Office and Internal Revenue Service - Criminal Investigation. The case was prosecuted by Assistant U.S. Attorneys Bow Bottomly and Chris M. Stephens.
Reference is made to the information and other public filings for further information.
Former Maryland Resident Sentenced for Selling Bogus Memorabilia Containing Phony AutographsRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced an Atlanta resident to 40 months in prison for selling counterfeit and fraudulently autographed memorabilia, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr.
U.S. District Court Judge Liles C. Burke sentenced Douglas Duren, 38, of Atlanta, GA, to 40 months in prison on one count of wire fraud and one count of aggravated identity theft. Duren pleaded guilty to the charges in March.
“My office will aggressively prosecute those who use the internet and other media to defraud the public,” U.S. Attorney Escalona said. “We applaud the FBI’s efforts in bringing this individual to justice.”
“By his plea, Duren has accepted responsibility for his actions; and those who were manipulated and suffered losses because of his deceit are seeing justice served,” SAC Sharp said. “If you suspect fraud, please report it to tips.fbi.gov or to your local FBI office.”
According to the plea agreement, from 2010 through October 2019, Duren sold counterfeit and fraudulently autographed memorabilia on three fraudulent websites, everymemorabilia.com, neautograph.com, and awesomememorabilia.com. Duren obtained retail items without autographs, such as sports equipment, photographs, books, and movie posters. Duren forged autographs on the memorabilia, then sold the fraudulently autographed items for a profit based on false claims of authenticity. The registration of the fraudulent websites was paid with the proceeds of his fraud scheme. Duren also advertised the fraudulent websites on two television stations located in the Northern District of Alabama, thereby defrauding the television stations and any customers who purchased autographed memorabilia from the fraudulent websites. Duren committed the fraud scheme while living in Maryland and then subsequently relocated his operation to Atlanta, Georgia.
According to the plea agreement, on May 22, 2018, Duren impersonated an account director of an advertising agency and defrauded a television station located in Birmingham, promising to pay $80,000 to a television station to advertise the fraudulent website everymemorabilia.com on their station. Duren failed to pay and discontinued contact with the television station.
On July 24, 2018, Duren impersonated an account director of a different advertising agency, and contacted a television station located in Madison County, Alabama to request advertisement services. Duren negotiated with the television station to run a four-week advertising campaign with a budget of $55,000. On July 25, 2018, Duren uploaded the file containing his advertisement to the television station’s server from his home in Maryland. The ad began running on July 30, 2018. The television station was unaware that the advertisement was for everymemorabilia.com, not the company that Duren had fraudulently represented. The advertisement ran until August 2, 2018. Duren never paid television station, nor did he intend to do so.
The FBI investigated the case. Assistant U.S. Attorney Michael Pillsbury prosecuted the case.
Former Erie Resident Pleads to Throwing Explosive Devices at Police During May 30, 2020 RiotsRead the Press Release
ERIE, Pa. – A former resident of Erie, Pennsylvania, pleaded guilty in federal court to a charge of possession of an unregistered destructive device, Acting United States Attorney Stephen R. Kaufman announced today.
Tyvarh Nicholson, 30, pleaded guilty to one count before Senior United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Nicholson threw Molotov cocktails at police officers during the riot that occurred in downtown Erie on May 30, 2020.
Judge Cercone scheduled sentencing for December 13, 2021 at 1:30 p.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing. the Judge ordered the defendant's continued detention.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Erie Police Department conducted the investigation that led to the prosecution of Nicholson.
Former CEO of Connecticut Non-Profit Sentenced to 2 Years in Prison for Embezzlement SchemeRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that MICHAEL MEAKEM, 59, of Norwich, was sentenced yesterday by U.S. District Judge Michael P. Shea in Hartford to 24 months imprisonment followed by two years of supervised release, a $100,000 fine, and $683,202 in restitution for embezzling from his former employer.
According to court documents and statements made in court, Meakem was the president and chief executive officer of the Center for Financial Training (“CFT”), a Farmington-based non-profit organization that provided continuing education to employees in the financial services industry. Between approximately 2013 and 2020, Meakem embezzled $683,202 from CFT’s credit card accounts and bank accounts and used the funds on personal expenses, including alimony payments, meals, cruises, other vacations, and gambling at Connecticut’s casinos.
On April 30, 2021, Meakem pleaded guilty to one count of wire fraud.
Meakem, who is released on a $100,000 bond, is required to report to prison on October 1, 2021.
This investigation was conducted by the Federal Bureau of Investigation amd the Norwich Police Department. The case was prosecuted by Assistant U.S. Attorney Jonathan N. Francis.
Former Board Chairman Charged with Securities Fraud, Conspiracy and ObstructionRead the Press Release
BOSTON – A Canadian national residing in Long Beach, Calif., was arrested today and charged in connection with a securities fraud scheme in which he allegedly concealed his ownership of millions of shares in two companies for which he served as the chairman of the board of directors and then secretly directed the shares’ sale, generating approximately $2.19 million in proceeds.
Avtar Singh Dhillon, 60, was charged in a criminal complaint with one count of conspiracy to commit securities fraud, one count of securities fraud and two counts of obstructing a proceeding of the U.S. Securities and Exchange Commission (SEC). Dhillon will make an initial appearance in federal court in Boston at a later date.
According to the charging document, Dhillon, while serving as the chairman of two publicly-traded microcap companies, fraudulently concealed his beneficial ownership of millions of shares in those companies through two LLC entities created and managed by his attorney. One of the companies, Arch Therapeutics, Inc., was based in Framingham, Mass. It is alleged that Dhillon and his attorney concealed Dhillon’s ownership for the purpose of secretly selling the shares for Dhillon’s benefit in contravention of securities regulations that require disclosure of such sales and that limit the ability of company insiders to quickly sell large quantities of shares. Through their scheme, Dhillon and his attorney allegedly generated approximately $2.19 million in fraudulent proceeds. Later, when giving sworn testimony before the SEC, Dhillon allegedly twice withheld from investigators his beneficial interest in the LLC entities’ accounts and lied about his awareness of whether anyone had sold shares in Arch Therapeutics.
The conspiracy charge and the securities fraud charge each provide for a sentence up to 25 years in prison, five years of supervised release and a fine of $250,000, or twice the gross gain or loss, whichever is greater. The charges of obstructing a proceeding of the U.S. Securities and Exchange Commission provide for sentences up to 20 years and five years in prison, respectively, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. The SEC and the SEC’s Boston Regional Office provided assistance with the investigation. Assistant U.S. Attorney James R. Drabick of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Foley Woman Sentenced to Fifteen Years in Methamphetamine ConspiracyRead the Press Release
MOBILE, AL – A Foley woman was sentenced today to 180 months in prison for her participation in a conspiracy to possess with intent to distribute methamphetamine.
According to court documents, Amber Renee White, 46, was identified during an investigation which resulted from controlled purchases of methamphetamine ice from White at various locations in Baldwin County, Alabama. White was stopped by Baldwin County sheriff’s deputies twice in routine traffic stops and methamphetamine was discovered in the subsequent searches of the vehicle. A search warrant was obtained for her residence during the investigation and additional quantities of methamphetamine ice were recovered, along with cash, drug paraphernalia and cell phones. White was advised of her rights and she admitted her participation in a scheme to possess with intent to distribute more than 51 kilograms of methamphetamine ice from 2016 through 2018.
United States District Court Judge Callie V.S. Granade imposed the 180-month sentence and ordered that White serve a five-year term of supervised release when she is released from custody. No fine was imposed, but White was ordered to pay a special mandatory assessment of $100.
The case was investigated by the Baldwin County Sheriff’s Office, the Safe Streets Task Force, and the Federal Bureau of Investigation. Assistant U.S. Attorney Gloria Bedwell prosecuted the case on behalf of the United States.
Federal Grand Jury A Indictments Announced- AugustRead the Press Release
Acting United States Attorney Clint Johnson today announced the results of the August 2021 Federal Grand Jury A.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Christopher Leon Beauchamp. Assault of an Intimate and Dating Partner by Strangling, Suffocating, and Attempting to Strangle and Suffocate in Indian Country. Beauchamp, 30, of Chouteau, is charged with assaulting a Cherokee Nation citizen by strangling and suffocating the victim on June 7, 2018. The FBI, Mayes County Sheriff’s Office and Choteau Police Department are the investigative agencies. (21-CR-336).
Camaran Blake Breazeale. Robbery in Indian Country; Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country; Carrying, Using, and Brandishing a Firearm During and in Relation to a Crime of Violence; Felon in Possession of a Firearm. Breazeale, 29, of Sand Springs, is charged with committing the July 13, 2021, robbery and assault of a Sand Springs convenience store owner. Breazeale allegedly knocked down, repeatedly punched, and struck the victim six times in the head with the butt of a 12-guage shot gun. The defendant, a convicted felon, was prohibited from possessing a firearm by federal law. See Complaint press release here. The FBI and Sand Springs Police Department are the investigative agencies. (21-CR-344)
Christopher Dean Dana. Aggravated Sexual Abuse of a Minor in Indian Country; Coercion and Enticement of a Minor in Indian Country; Sexual Abuse of a Minor in Indian Country; Abusive Sexual Contact with a Child Under the Age of 12 Years in Indian Country; Abusive Sexual Contact with a Child Between the Ages of 12 and 16 Years in Indian Country (superseding). Dana is charged with sexually abusing a child starting when the victim was under the age of 12 and as she grew older. The abuse began in 2014 and continued through 2020. The FBI and Broken Arrow Police Department are the investigative agencies. (21-CR-228)
Bobby Antonio Deleon Jr. Assault with a Dangerous Weapon in Indian Country; Carrying, Using, Brandishing, and Discharging a Firearm During and in Relation to a Crime of Violence; First Degree Burglary in Indian Country. Deleon Jr., 29, of Tulsa, allegedly shot a Cherokee Nation citizen on July 13, 2021. Earlier on June 26, 2021, Deleon also allegedly kicked in the same victim’s door, threatened the victim, and discharged his firearm into the floor. The FBI and Tulsa Police Department are the investigative agencies. (21-CR-338)
Marshall Chippewa. Arson in Indian Country. On July 26, 2021, Chippewa, 35, of Tulsa, allegedly set fire to the outside of a QuikTrip on Memorial Dr. in Tulsa. He then allegedly poured gasoline on an inside countertop and lit it on fire. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Tulsa Police Department are the investigative agencies. (21-CR-337)
Paul W. King. False Tax Return (superseding). King, 57, of Grove, allegedly created, signed and filed four false tax returns for the years 2011, 2012, 2013, and 2014. Each return included a schedule C for King as the owner of King’s Guttering that reported gross receipts. In those, King did not report $68,350 in gross receipts for 2011; $153,364 for 2012; $136,831 for 2013; and $74,209 for 2014. In total, King failed to report $432,754 in gross receipts to the IRS. IRS-Criminal Investigation is the investigative agency. (21-CR-74)
Dameon Lamar Leathers. First Degree Murder in Indian Country; First Degree Felony Murder in Indian Country; Robbery in Indian Country; Causing Death by Using and Discharging a Firearm During and in Relation to a Crime of Violence; Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country (superseding). New to this superseding indictment are counts 2-5. Leathers, 39, of Tulsa, allegedly shot and killed Howard Eugene Thompson during a robbery on April 6, 2018. Leathers also struck a Tulsa County assistant district attorney in the head with a water pitcher on Nov. 22, 2019, after receiving a guilty verdict at his state trial for the murder of Mr. Thompson. Leathers’ state conviction was later dismissed due to lack of jurisdiction. He was then was charged by federal prosecutors. Leathers is a citizen of the Muscogee Nation, and the crime occurred within the Cherokee Nation reservation. The FBI and Tulsa Police Department are the investigative agencies. (21-CR-163)
Michael David Pierce. Abusive Sexual Contact with a Minor in Indian Country. Pierce, 32, of Tulsa, is charged with attempting to engage in sexual contact with a minor between the ages of 12 and 16 on Oct. 21, 2019, in Claremore. The FBI and Grand River Dam Authority (GRDA) Lake Police are the investigative agencies. (21-CR-345)
Victor Miguel Flores Pina; Daniel Ibarra Calderon. Possession of Methamphetamine with Intent to Distribute; Possession of Marijuana with Intent to Distribute; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; Maintaining a Drug-Involved Premises. Flores, 27, and Ibarra, 41, both illegally in the United States, are charged with possessing with intent to distribute 50 grams or more of methamphetamine and with possessing with intent to distribute marijuana. They are also charged with furthering their drug trafficking crimes by possessing a Smith &Wesson .40 caliber pistol; a Glock 23 .40 caliber pistol; and a shotgun with pistol grip. Finally, the two are charged with maintaining a residence for the purpose of manufacturing, storing, and distributing methamphetamine. The Drug Enforcement Administration and Tulsa Police Department are the investigative agencies. (21-CR-339)
Wade Andrew Rutherford. Felon in Possession of a Firearm and Ammunition. Rutherford, 53, of Skiatook, is charged with being a felon in possession of a Marlin Firearms Co. .22 caliber semi-automatic rifle and more than 200 rounds of ammunition. The FBI; Bureau of Alcohol, Tobacco, Firearms and Explosives; Cherokee Nation Marshal Service; and Washington County Sheriff’s Office are the investigative agencies. (21-CR-346)
Camren Dion Sanders. Robbery in Indian Country. Sanders, 20, of Tulsa, allegedly robbed a man at gunpoint on July 2, 2021, taking money, cigarettes and a rifle from the victim. The FBI and Tulsa Police Department are the investigative agencies. (21-CR-347)
Joshua David Slinkard. Aggravated Sexual Abuse of a Minor in Indian Country (Counts 1 & 2); Possession of Child Pornography (Count 3) (superseding). Slinkard, 40, of Tulsa, is charged with sexually abusing a minor between Jan. 1, 2009, and Nov. 26, 2010. In this superseding indictment, Slinkard is also charged with possessing videos that showed the sexual abuse of minors. At least one of the children was under the age of 12. Slinkard was previously convicted in Tulsa County District Court for the crime. His conviction was later dismissed due to lack of jurisdiction. He was then charged by federal prosecutors. Slinkard is a citizen of the Cherokee Nation, and the crime occurred within the Muscogee Nation reservation. The FBI and Tulsa Police Department are the investigative agencies. 21-CR-266
Alexander Nicholaus Sweet. Coercion and Enticement of a Minor; Production of Child Pornography; Receipt of Child Pornography; Possession of Child Pornography. From September 2019 to July 26, 2021, Sweet, 28, of Tulsa, allegedly used electronic devices and social media to persuade and entice a minor to engage in sexual activity. During the same time, Sweet allegedly persuaded the minor to engage in sexually explicit behavior to produce child pornography using the victim’s computer and cell phone. Sweet is also charged with receiving and with possessing child pornography. The initial Complaint press release can be found here. The FBI and Tulsa Police Department are the investigative agencies. (21-CR-340)
Delawnsha Lemar Tiger. Attempted Coercion and Enticement of a Minor; Sexual Abuse of a Minor in Indian Country (superseding). From June 18, 2020, to June 22, 2020, Tiger, 27, of Bristow, allegedly coerced and enticed a minor between the ages of 12 and 16 to engage in sexual activity. He is further charged with sexually abusing the minor in Indian Country. The Bristow Police Department and FBI are the investigative agencies. (20-CR-124)
Daijon Marque Welch. Second Degree Murder in Indian Country; Felon in Possession of a Firearm. Welch, 25, is charged with the second degree murder of Cameron Maurice Wilson by shooting him multiple times in the back, hip, chest and right hand. Welch is also charged with being a felon in possession of a Ruger 9mm Luger semi-automatic pistol. The FBI and Tulsa Police Department are the investigative agencies. (21-CR-343)
Christian Joshua Wilson. Felon in Possession of a Firearm and Ammunition. Wilson, 20, of Tulsa, is charged with being a felon in possession of a Springfield .45 caliber pistol and associated ammunition. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Tulsa Police Department are the investigative agencies. (21-CR-341)
Fairfax Man Sentenced for Receiving, Soliciting and Promoting Child PornographyRead the Press Release
ALEXANDRIA, Va. – A Fairfax man was sentenced today to 20 years in prison for downloading images and videos depicting children as young as four years old being sexually abused, and for utilizing the Darknet to solicit and promote child pornography.
According to court documents and evidence presented at trial, Christopher Robert Sueiro, 40, used a peer-to-peer network to download child sexual abuse material (CSAM). Sueiro was also a member of a Darknet hidden service website dedicated to trafficking in CSAM depicting preteen boys, where he made posts promoting and soliciting CSAM images and videos and attempted to receive CSAM from other users of the website. Sueiro’s electronic devices included documents describing graphic sexual abuse of children and a guide to how to find child pornography online. He downloaded CSAM repeatedly over the course of at least four years, amassing thousands of images and videos.
Sueiro’s child pornography offenses first came to the attention of law enforcement when investigators searched Sueiro’s digital devices during an unrelated online threats investigation.
“For years, this defendant used the internet, including the dark web, to solicit, obtain, and promote images and videos depicting the sexual abuse of children,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “The trafficking of child pornography is egregious and repugnant behavior, and as today’s sentence demonstrates, will be met with serious consequences in EDVA. We are grateful to everyone who worked tirelessly on this case to secure a measure of justice on behalf of society’s most vulnerable victims.”
“The Department of Justice is committed to tracking down people like Christopher Sueiro who traffic in haunting images and videos of children during their worst moments and who perpetuate the grievous harm to the victims,” said Assistant Attorney General Kenneth A. Polite Jr. for the Justice Department’s Criminal Division. “I commend the excellent work done by the investigators and prosecutors in this case. Today’s sentence is a step in achieving some justice for the victims and sends a message to other offenders that we will continue to find and prosecute people who victimize vulnerable children.”
“Each time someone downloads child pornography, the child is victimized all over again,” said Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Washington, D.C. “Predators cannot hide behind the cloak of the internet; our special agents and law enforcement partners work tirelessly to identify them and ensure they are prosecuted to the fullest extent of the law.”
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Kenneth A. Polite Jr., Assistant Attorney General of the Justice Department’s Criminal Division; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Washington, D.C.; and Erin Schaible, Chief Colonel of the City of Fairfax Police Department made the announcement.
HSI and the City of Fairfax Police Department investigated the case, with significant assistance from the High Technology Investigative Unit (HTIU) of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).
Former Assistant U.S. Attorney Nathaniel Smith III and CEOS Trial Attorney James E. Burke IV prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-284.
Executive Arrested and Charged for Bribery and Money-Laundering SchemeRead the Press Release
A South Florida resident was arrested yesterday in Miami on charges related to his alleged role in a scheme to bribe Venezuelan officials and launder funds to obtain contracts from Venezuela’s state-owned and state-controlled energy company, Petróleos de Venezuela S.A. (PDVSA), and Venezuela’s state-owned and state-controlled food company that purchased food for Venezuela, Corporación de Abastecimiento y Servicios Agrícola (CASA).
According to court documents, from 2010 continuing through at least September 2017, Naman Wakil, 59, of Miami, a Syrian national and U.S. lawful permanent resident, allegedly conspired with others to make bribe payments to CASA officials and officials at joint ventures between PDVSA and various foreign companies in the oil-rich Orinoco belt of Venezuela. Wakil allegedly paid these bribes to obtain at least $250 million in contracts to sell food to CASA and do business with the PDVSA joint ventures, including obtaining highly inflated contracts (worth at least $30 million) to provide goods and services to the PDVSA joint ventures. Wakil laundered funds related to the bribery scheme to and from bank accounts located in south Florida and purchased 10 apartment units in south Florida, a $3.5-million plane and a $1.5-million yacht, among other things. Wakil also used a portion of the funds to make payments to or for the benefit of the Venezuelan officials.
Wakil is charged with conspiracy to violate the Foreign Corrupt Practices Act (FCPA), violating the FCPA, conspiracy to commit money laundering, international promotional money laundering and three counts of engaging in transactions involving criminally derived property. If convicted, Wakil faces a maximum penalty of 80 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Wakil made his initial appearance in federal court today at 1:30 p.m. before U.S. Magistrate Judge Lauren Louis in Miami.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, Acting U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida, Special Agent in Charge Anthony Salisbury of the Homeland Security Investigations (HSI) Miami Field Office, and Acting Special Agent in Charge Tyler R. Hatcher of the IRS Criminal Investigation (IRS-CI) Miami Field Office made the announcement.
Trial Attorney Alexander Kramer of the Justice Department’s Fraud Section and Assistant U.S. Attorney Michael Berger of the Southern District of Florida are prosecuting the case.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Elmira Man with Prior Rape Conviction Going to Prison for 20 Years on Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jeffrey Martin, 37, of Elmira, NY, who was convicted of receipt of child pornography, following a prior conviction, was sentenced to serve 240 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Melissa M. Marangola, who handled the case, stated that between May 31 and July 19, 2019, Minor Victim 1 slept over at the defendant’s residence on several occasions with the permission of Minor Victim 1’s mother. On at least one of those occasions, Martin took several sexually explicit pictures of Minor Victim 1 with his cellular telephone, knowing that such photographs would be automatically uploaded to his Google online storage account.
The defendant was previously convicted of felony statutory rape in Mansfield, Pennsylvania, on July 19, 2004.
The sentencing is the result of an investigation by the Federal Bureau of Investigation Child Exploitation Task Force, under the direction of Special Agent-in-Charge Stephen Belongia.
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Eagle Butte Man Sentenced for Meth TraffickingRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that an Eagle Butte, South Dakota, man was sentenced of Possession with Intent to Distribute a Controlled Substance on August 2, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Anthony Story, age 43, was sentenced to 63 months in federal prison, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Story was indicted by a federal grand jury on August 11, 2020. A jury found Story guilty after a two-day trial on May 19, 2021.
The conviction stemmed from an incident on August 14, 2019, in Eagle Butte, wherein Story knowingly possessed 37 grams of methamphetamine with intent to distribute the drug. Story was arrested while he was sleeping inside a camper in Eagle Butte next to a lightbulb fashioned into a pipe, and a small bag holding the methamphetamine and a digital scale. Law enforcement officers discovered Story and the methamphetamine while searching for another individual. Plastic bags holding the methamphetamine were submitted to the South Dakota Forensic Laboratory for DNA testing. The DNA profiles obtained from swabs of the plastic bags were found to match Story’s DNA profile.
The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement Services, Northern Plains Safe Trails Drug Enforcement Task Force, South Dakota Division of Criminal Investigation, and the Federal Bureau of Investigation. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Story was immediately remanded to the custody of the U.S. Marshals Service.
Detroit man indicted on drug and firearms chargesRead the Press Release
WHEELING, WEST VIRGINIA – Alante Martel Nelson, of Detroit, Michigan, was indicted today on drug and firearms charges, Acting United States Attorney Randolph J. Bernard announced.
Nelson, 28, was indicted on one count of “Possession with Intent to Distribute Heroin” and one count of “Unlawful Possession of a Firearm.” Nelson is accused of having heroin in August 2020 in Monongalia County. Nelson, a person prohibited from having a firearm because of a prior conviction, is also accused of having a .380 caliber pistol and a semi-automatic pistol in August 2020 in Monongalia County.
Nelson faces up to 30 years of incarceration and a fine of up to $2,000,000 for the heroin charge and faces up to 10 years of incarceration and a fine of up to $250,0000 for the firearms charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Morgantown Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Darknet Drug Vendor Pleads Guilty to Distributing Illicit Prescription DrugsRead the Press Release
ALEXANDRIA, Va. – A Georgia man pleaded guilty yesterday to distributing illicit prescription drugs over the Darknet and shipping them across the country via the U.S Postal Service.
According to court documents, from around April 2020 through October 2020, Cullen Roberts, 23, of Duluth, Georgia, used the moniker “Pillpusher” to sell prescription opioids and other scheduled narcotics on a Darknet market. Beginning in July 2020, law enforcement began investigating Roberts by conducting a series of undercover purchases of various types of prescription drugs via the Darknet.
Roberts promoted the quality of the pills that he advertised for sale on his Darknet vendor page. For example, in September 2020, he listed a quantity of oxymorphone pills, a powerful opiate used to treat severe pain, for sale for $90/pill. In the listing, Roberts described the oxymorphone pills as “the gold standard for any opiate” and “the closest you will get to heaven.”
Roberts was identified as “Pillpusher” when he was caught shipping packages containing prescription drugs through the U.S. Post Office in Cumming, Georgia. Agents subsequently discovered dozens of tablets of Tramadol, a Schedule IV analgesic that is also commonly abused. Agents also recovered from Roberts’ residence empty boxes that had contained oxycodone and alprazolam (brand name Xanax).
Roberts is scheduled to be sentenced on November 2. He faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Robert E. Bornstein, Acting Special Agent in Charge of the FBI Washington Field Office Criminal Division; and Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea.
Assistant U.S. Attorney Katherine E. Rumbaugh is prosecuting the case.
This investigation was conducted by the FBI Washington Field Office’s Hi-Tech Opioid Task Force, which is composed of FBI agents and task force partners, including special agents and officers of the Food and Drug Administration’s Office of Criminal Investigations, DEA, U.S. Postal Inspection Service, and detectives from local assisting police agencies. The task force is charged with identifying and investigating the most egregious Dark Web marketplaces, and the vendors operating on the marketplaces who are engaged in the illegal acquisition and distribution of controlled substances, to include fentanyl, methamphetamine, and other opioids.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-cr-164.
Crow Agency man sentenced to prison for stabbing manRead the Press Release
BILLINGS — A Crow Agency man who admitted to stabbing another man last year on the Crow Indian Reservation was sentenced today to 27 months in prison to be followed by three years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
Dee Bad Bear, 60, pleaded guilty on March 12 to an indictment charging him with assault with a dangerous weapon.
U.S. District Judge Susan P. Watters presided.
In court documents filed in the case, the government alleged the assault occurred on April 17, 2020 at a Lodge Grass residence, located on the Crow Indian Reservation. Bad Bear and the victim, identified as John Doe, were drinking alcohol and talking. Doe went to the bathroom and when he came out, Bad Bear slashed him with a knife. Doe was treated for injuries at a hospital in Billings. A knife matching a description by the victim was recovered from Bad Bear’s car.
Assistant U.S. Attorney Jeanne Torske prosecuted the case, which was investigated by the FBI and Bureau of Indian Affairs.
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Convicted Felon Guilty of Illegally Possessing Firearms in PSN InvestigationRead the Press Release
COLUMBUS, Ga. – A Columbus resident with several prior felony convictions pleaded guilty to illegally possessing a firearm resulting from a Project Safe Neighborhoods (PSN) investigation.
Charleston Magee, aka Chopp, 33, of Columbus, pleaded guilty to possession of a firearm by a convicted felon before U.S. District Judge Clay Land on Tuesday, August 3. Magee faces a maximum prison sentence of ten years to be followed by three years of supervised release and a maximum fine of $250,000. Sentencing is scheduled for October 20. There is no parole in the federal system.
“It is illegal for convicted felons to possess firearms. Repeat offenders caught with illegal weapons in Columbus will face federal prosecution,” said Acting U.S. Attorney Peter D. Leary. “The Columbus Police Department is working closely with ATF and our federal and state law enforcement partners to hold repeat offenders accountable for their continued criminal actions, working toward a safer community.”
"Our communities deserve to be safe from violent criminals. Project Safe Neighborhoods allows ATF and our federal, state and local partners to focus on the individuals who choose to utilize firearms to commit their heinous crimes and terrorize our communities,” said Assistant Special Agent in Charge John Schmidt. “ATF will continue to participate in and support this very important initiative. Anyone who possesses a gun in the commission of a crime is a danger to everyone, and it is crucial that we continue to focus our efforts on identifying, investigating and removing these individuals from our streets."
“I am pleased with the outcome of this case and I am thankful for our partnership with our federal partners. We will continue to work together to make cases to keep our community safe from criminal offenders. This type behavior will not be tolerated in Columbus, Georgia,” said Chief Freddie Blackmon, Columbus Police Department.
According to court documents, the Special Operations Unit of the Columbus Police Department (CPD) met with a confidential informant (CI) in August 2019 about an individual known as “Chopp” who was distributing illegal drugs in the community. Under surveillance, the CI purchased illegal drugs from Magee in August and September 2019. Officers executing a search warrant at Magee’s residence on September 16, 2019, found quantities of methamphetamine, powder and crack cocaine in baggies, a Glock 19 handgun with a large-capacity extended magazine containing six rounds of live ammunition, a .22 rifle, a 12-gauge shotgun, an extended pistol magazine and $3,000 in cash. Magee was previously convicted of possession of cocaine with intent to distribute and possession of a firearm by a convicted felon in Muscogee County, Georgia, Superior Court. It is illegal for a convicted felon to possess a firearm.
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.
The case was investigated by the Columbus Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Assistant U.S. Attorney Crawford Seals prosecuted the case for the Government.
Convicted Drug Dealer Indicted for Distributing Fentanyl Resulting in DeathRead the Press Release
Ocala, Florida – Acting United States Attorney Karin Hoppmann announces the unsealing of an indictment charging Jermaine Lamar Harvard (40, Lake County) with one count of distributing fentanyl resulting in death. If convicted, Harvard faces a mandatory sentence of life in federal prison. He was arrested on August 4, 2021.
Harvard had been indicted on April 22, 2021.
According to the indictment, on or about October 12, 2019, Harvard distributed a quantity of fentanyl to an individual known as M.R. As a result of using the fentanyl that Harvard distributed, M.R. died. Harvard has prior convictions for sale of cocaine in 2013.
An indictment is merely a formal charge that a defendant has violated one or more of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation and the Lake County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney William S. Hamilton.
Colombian Narcotrafficker Sentenced to 210 Months’ Imprisonment for Distributing More Than 30,000 Kilograms of Cocaine to the United StatesRead the Press Release
Earlier today, in federal court in Brooklyn, Carlos Gentil Ordonez Martinez was sentenced to 210 months’ imprisonment by United States District Judge Edward R. Korman for conspiracy to internationally distribute cocaine. As part of the sentence, the Court entered a forfeiture money judgment of $10 million. Ordonez pleaded guilty to the charge in November 2019.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), and Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), Dermot F. Shea, Commissioner, New York City Police Department (NYPD), and Kevin P. Bruen, Acting Superintendent, New York State Police (NYSP), announced the sentence.
“It is fitting that the defendant, who trafficked in massive amounts of cocaine to be sold at high prices in the United States, will now pay for his crimes by forfeiting his freedom for more than 17 years and forfeiting $10 million in criminal proceeds,” stated Acting United States Attorney Kasulis. “This Office and its law enforcement partners will continue to work tirelessly to bring national and international narcotraffickers to justice.”
Ms. Kasulis expressed her grateful appreciation to HSI Panama, the HSI Panama Transnational Criminal Investigative Unit (TCIU), the Panamanian National Police, DEA Bogota Country Office Group 2 (BCO2) and the Colombian National Police (CNP) Direccion de Investigacion Criminal e Interpol (DIJIN) Sensitive Investigative Unit (SIU) for their assistance.
“The real Narcos of the world are receiving justice, as evidenced by today’s sentencing,” stated DEA Special Agent-in-Charge Donovan. “Time and again, this DEA investigation has led to the arrest, extradition, and sentencing of an international drug kingpin responsible for flooding the streets of U.S. cities with multi-ton quantities of dangerous drugs. I applaud the members of the New York Drug Enforcement Task Force, HSI, and the U.S. Attorney’s Office Eastern District of New York for their diligent work throughout this investigation.”
“Today's sentencing sends a resounding message that HSI Special Agents are committed to working with our law enforcement partners to aggressively uncover, dismantle and disrupt transnational organizations who conspire to distribute cocaine,” stated HSI Special Agent-in-Charge Fitzhugh. “Ordonez Martinez’s sentencing and $10 million forfeiture reinforces local and federal law enforcement commitment to bring to justice those individuals and organizations who seek to profit from selling dangerous controlled substances that tear at the very fabric of our community.”
According to court filings and proceedings, from 2009 through 2014, Ordonez participated in a massive international drug trafficking conspiracy responsible for trafficking tens of thousands of kilograms of cocaine from laboratories in the Colombian jungle to intermediary locations in Central America and Mexico by sea, before the cocaine was transported to the United States. Ordonez supplied the conspiracy with the cocaine it trafficked and also owned a portion of the multi-ton shipments of cocaine that the organization dispatched from Colombia to intermediary locations, including Honduras, Guatemala and Mexico, before being sent to the United States where it was sold. He further increased his share of the profits by receiving payment per kilogram at the substantially higher prices yielded from selling the cocaine further north and closer to the United States. Ordonez received a conservatively estimated $10,000,000 for his involvement in the conspiracy. Ordonez was arrested in Panama in June 2018 and extradited to the United States on July 12, 2018.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorney Nomi D. Berenson is in charge of the prosecution.
The Defendant:
CARLOS GENTIL ORDONEZ MARTINEZ (also known as “Picapiedra” and “Bam Bam”)
Age: 50
Cauca, ColombiaE.D.N.Y. Docket No. 18-CR-200 (ERK)
Coconut Grove Resident Charged in Multi-Million Dollar Venezuelan Bribery and Money Laundering SchemeRead the Press Release
Miami, Florida -- A South Florida resident made his initial federal court appearance in Miami today to face an indictment charging him with laundering money and bribing Venezuelan officials in exchange for receiving lucrative contracts from Venezuela’s state-owned and state-controlled energy company, Petróleos de Venezuela S.A. (PDVSA), and Venezuela’s state-owned and state-controlled food company that purchased food for Venezuela, Corporación de Abastecimiento y Servicios Agrícola (CASA).
According to court documents, from 2010 continuing through at least September 2017, Naman Wakil, 59, of Miami, a Syrian national and U.S. legal permanent resident, allegedly conspired with others to make bribe payments to CASA officials and officials at joint ventures between PDVSA and various foreign companies in the oil-rich Orinoco belt of Venezuela. Wakil allegedly paid these bribes to obtain at least $250 million in contracts to sell food to CASA and do business with the PDVSA joint ventures, including obtaining highly inflated contracts (worth at least $30 million) to provide goods and services to the PDVSA joint ventures. Wakil laundered funds related to the bribery scheme to and from bank accounts located in south Florida and purchased 10 apartment units in south Florida, a $3.5-million plane and a $1.5-million yacht, among other things. Wakil also used a portion of the funds to make payments to or for the benefit of the Venezuelan officials.
The indictment charges Wakil with conspiracy to violate the Foreign Corrupt Practices Act (FCPA), violating the FCPA, conspiracy to commit money laundering, international promotional money laundering and three counts of engaging in transactions involving criminally derived property. If convicted, Wakil faces a maximum penalty of 80 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Wakil is scheduled for a pretrial detention hearing on Friday, August 6, at 10:00 a.m., in federal magistrate court in Miami.
Acting U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida, Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI) Miami Field Office, and Acting Special Agent in Charge Matthew D. Line of IRS Criminal Investigation (IRS-CI) Miami Field Office made the announcement.
HSI Miami and IRS-CI Miami investigated the case. Assistant U.S. Attorney Michael Berger of the Southern District of Florida and Attorney Alexander Kramer of the Justice Department’s Fraud Section are prosecuting the case. Deputy Chief, Assistant U.S. Attorney Adrienne E. Rosen and Assistant U.S. Attorney Emily Stone are handling asset forfeiture.
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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Citrus Springs Man Pleads Guilty to Narcotics and Firearms ChargesRead the Press Release
Ocala, Florida – Simeon Kyle Hopkins (28, Citrus Springs) today pleaded guilty to one count of possessing a firearm in furtherance of drug trafficking and one count of possessing cocaine base with intent to distribute. Hopkins faces a minimum mandatory penalty of five years, and up to, life in federal prison. A sentencing date has not yet been set.
Hopkins had been indicted on November 4, 2020.
According to the plea agreement, agents executed a search warrant at Hopkins’s Citrus Springs residence on March 17, 2020. During the search, agents seized cocaine base and a handgun in a nightstand next to Hopkins’s bed. Agents also seized a gun safe containing seven additional firearms, ammunition, and $2,000 in cash. Hopkins admitted to selling the cocaine base.
On December 3, 2020, law enforcement executed another search warrant at Hopkins’s residence and seized approximately eight pounds of marijuana in the attic.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Citrus County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney William S. Hamilton.
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.
Chunchula Man Sentenced to Twelve Years in Methamphetamine CaseRead the Press Release
MOBILE, AL – A Chunchula man was sentenced today to 144 months in prison for his participation in a conspiracy to possess with intent to distribute methamphetamine.
According to court documents, Freddy Paul Foreman, Jr., 38, was identified during an investigation which resulted from controlled purchases of methamphetamine ice from Foreman at his home in Baldwin County, Alabama. Baldwin County sheriff’s deputies obtained a search warrant for the premises and executed it. A co-defendant in the case told deputies that they were awaiting a shipment of drugs at the residence but it had not yet arrived. Deputies seized cell phones, drug paraphernalia and cash, including some of the marked money used to make the controlled purchases of drugs prior to the execution of the search warrant. At the time of his arrest, Foreman was on supervised release from a prior federal conviction for possession of a firearm during and in relation to a drug trafficking felony. His ongoing criminal activity resulted in a petition filed by the United States Probation Office seeking revocation of the five-year supervised release term and his remand to federal prison.
United States District Court Judge Callie V.S. Granade imposed the 144-month sentence, consisting of 84 months on the drug conspiracy, and 60 months for the violation of the supervised release conditions, with the sentences to run consecutively. No fine was imposed, but Foreman was ordered to pay a special mandatory assessment of $100. A five-year term of supervised release was again imposed, to begin when Foreman is released from prison.
The case was investigated by the Baldwin County Sheriff’s Office, the Safe Streets Task Force, and the Federal Bureau of Investigation. Assistant U.S. Attorney Gloria Bedwell prosecuted the case on behalf of the United States.
Centre County Woman Sentenced for Mail TheftRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jessica Stover, age 27, of Millheim, Pennsylvania, was sentenced on August 3, 2021, by Chief U.S. District Court Judge Matthew W. Brann to one year of probation for theft of mail. Stover was also ordered to pay $350 in restitution and a $300 fine.
According to Acting U.S. Attorney Bruce D. Brandler, Stover entered a guilty plea in March 2021 to theft of mail matter by a Postal Employee where she admitted to opening greeting cards and other mail at a U.S. Post Office sorting facility for mail destined for students at Pennsylvania State University.
The case was investigated by the United States Postal Service Office of Inspector General. Assistant United States Attorney Geoffrey W. MacArthur prosecuted the case.
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Canadian Man Pleads Guilty to Conspiracy to Fraudulently Acquire Personal Protective Equipment and Event TicketsRead the Press Release
OKLAHOMA CITY – Yesterday, STEVEN MESROP, 29, of Richmond Hill, Ontario, Canada pleaded guilty to participating in a conspiracy to commit wire fraud involving a scheme to fraudulently acquire personal protective equipment and event tickets, announced Acting U.S. Attorney Robert J. Troester.
On June 15, 2021, a federal grand jury returned a Superseding Indictment against Mesrop and seven other people. All defendants were charged with conspiracy. In addition, Mesrop and another conspirator were charged with wire fraud and aggravated identity theft.
According to the Superseding Indictment, Mesrop and his associates operated a scheme to use stolen credit card and identity information to induce businesses to provide goods and services, such as event tickets and personal protective equipment, to resell for a profit. At the onset of the COVID-19 pandemic, the conspirators began targeting U.S.-based businesses selling goods that were scarce due to the pandemic. The conspirators allegedly used stolen credit card information to purchase items such as nitrile gloves, masks, and gowns and to resell them to third parties. The Superseding Indictment alleges the conspirators operated the scheme from Canada, the Dominican Republic, Spain, Greece, and Dubai. The Superseding Indictment alleges the conspirators targeted sports teams and event venues throughout the United States and Canada, including Madison Square Garden in New York City.
The Superseding Indictment further alleges that Mesrop and his associates used 21 different alias email accounts and information from 52 stolen credit cards to purchase over 1,800 tickets to Oklahoma State University athletic events between November 2019 and January 2020. In March 2020, the conspirators allegedly used stolen credit card information to purchase approximately thousands of dollars’ worth of toilet paper from a paper supply company in Oklahoma City.
Yesterday, Mesrop pleaded guilty to conspiracy to commit wire fraud. At sentencing, Mesrop faces a term of imprisonment of up to 20 years and a potential fine of $250,000. He has been in custody since his arrest on March 18, 2021.
This case is the result of an investigation by the Federal Bureau of Investigation’s Oklahoma City Field Office, Homeland Security Investigations New York Office – El Dorado Task Force, the New York City Police Department, and the Irvine (California) Police Department, with assistance from Customs and Border Protection. The case is being prosecuted by Assistant U.S. Attorney William Farrior.
Reference is made to court filings for further information.
California man sentenced to more than six years in prison for meth trafficking in Billings areaRead the Press Release
BILLINGS — A California man who admitted to trafficking methamphetamine after law enforcement officers found eight kilograms, or 17.6 pounds, of the drug hidden in a vehicle he was driving was sentenced today to six years and six months in prison to be followed by five years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
Christopher Santillanes Ceja, 31, of Riverside, California, pleaded guilty on March 8 to possession with intent to distribute meth.
U.S. District Judge Susan P. Watters presided.
In court documents filed in the case, the government alleged that law enforcement agents learned in March 2019 about a shipment of meth being transported from Mexico to Billings. Law enforcement surveillance saw a vehicle with a California license plate registered to Ceja pull into a Billings hotel. Ceja was known to law enforcement as having been involved in meth trafficking in the Billings area. Later that same evening, officers conducted a traffic stop of the vehicle and Ceja was driving. Agents impounded and searched the vehicle pursuant to a warrant. Agents located 19 bundles of meth concealed throughout the vehicle. The meth totaled eight kilograms, or about 17.6 pounds, of pure meth. Eight kilograms of meth is the equivalent of about 63,782 doses.
Assistant U.S. Attorney Lori H. Suek prosecuted the case, which was investigated by the FBI’s Western Transnational Organized Crime Task Force and the Eastern Montana High Intensity Drug Trafficking Area Task Force.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 48% from 2013 to 2019. 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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California man indicted on drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Victor L. Roebuck, II, of Long Beach, California, was indicted today on a marijuana charge, Acting United States Attorney Randolph J. Bernard announced.
Roebuck, 33, was indicted on one count of “Possession with Intent to Distribute Marijuana.” Roebuck is accused of having marijuana in May 2021 in Ohio County.
Roebuck faces up to five years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The West Virginia State Police investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
California Woman Sentenced to Federal Prison for Conspiring to Distribute MethamphetamineRead the Press Release
A California woman who traveled from California to Sioux City to distribute methamphetamine was sentenced July 30, 2021, to more than 10 years in federal prison.
Leslie Aranda-Moreno, age 27, from San Diego, California, received the prison term after a March 19, 2021, guilty plea to conspiracy to distribute methamphetamine.
In a plea agreement, Aranda-Moreno admitted that in January 2020, she conspired to distribute methamphetamine in the Northern District of Iowa, and elsewhere.
On or about January 30, 2020, Homeland Security Investigations agents were contacted by officers from the Colorado State Patrol regarding a vehicle being driven by Aranda-Moreno that had been stopped and searched in Colorado. The officers found the vehicle contained approximately seven (7) pounds of methamphetamine. It was determined that Aranda-Moreno would pick up large quantities of methamphetamine from Mexico in California and drive them to Sioux City for distribution.
Aranda-Moreno was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Aranda-Moreno was sentenced to 122 months’ imprisonment. She must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Aranda-Moreno is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Ron Timmons and was investigated by the Iowa Division of Narcotics Enforcement, Homeland Security Investigations, Buena Vista County Sheriff’s Office, and Colorado State Patrol.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4056.
Follow us on Twitter @USAO_NDIA.
Attorney Sentenced for Conspiracy to Commit Wire Fraud and Money LaunderingRead the Press Release
DENVER – Former California attorney David Kaplan, of Las Vegas, was sentenced on August 3, by U.S. District Court Judge Christine M. Arguello for conspiracy to commit wire fraud and money laundering.
According to the information contained in court documents, between approximately September 2014 through October 2015, Kaplan and two other individuals worked to defraud investors out of money and property through materially false and fraudulent representations. The co-conspirators obtained approximately $12 million from investors by claiming they could invest risk-free in offshore investments with an occasional 10% return on investment per month. As part of the scheme, Kaplan established and controlled business entities, including several charitable organizations, to deposit and transfer investor funds and pay himself for personal expenses. Using his position and attorney trust accounts, Kaplan was able to gain the trust of investors and create the pretense that investor monies were held in trust. Kaplan made payments to investors to lull them and encourage the recruitment of additional investors.
”Of course, attorneys are not above the law, and this sentencing demonstrates that we can, and will, prosecute anyone who breaks the law to the fullest extent,” said Acting U.S. Attorney Matt Kirsch. “We are proud of the cumulative effort of all who helped ensure Mr. Kaplan could not victimize additional investors.”
Kaplan, who diverted over $2 million for his own personal benefit, pled guilty on April 7, 2021 and was sentenced to 36 months in prison yesterday. Kaplan, never disclosed to investors the precise amount of financial benefit he was to receive, including the terms of his compensation, costs or fees, or the identity of the “Fiduciary,” despite investor requests for this information.
“Investment schemes that seem too good to be true should be a warning to investors to stay clear,” said IRS-Criminal Investigation Special Agent in Charge Andy Tsui. “This sentencing shows that IRS-CI will use all its investigative tools to stop the criminal behavior of those who prey on investors for their own personal financial gain.”
“Mr. Kaplan capitalized on his position of trust as an attorney to create an elaborate investment scheme, touting inflated returns and even leveraging support for several charities, all of which proved to be a mirage that cost investors millions," said FBI Denver Special Agent in Charge Michael Schneider. "Today’s sentence sends a message that the FBI will find criminals who greedily prey on investors and corrupt financial markets no matter how clever they believe they are. We thank IRS-Criminal Investigation and the U.S. Attorney’s Office for their diligent work on this case."
This case was investigated by the Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Tim Neff.
Case Number: 19-cr-00237
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Anchorage Man Convicted of Sex Trafficking and Drug OffensesRead the Press Release
ANCHORAGE – A federal jury convicted an Anchorage man on three counts of sex trafficking and one count of drug distribution after a six-day jury trial before U.S. District Judge Joshua M. Kindred. The jury reached its verdicts after one day of deliberations.
According to court documents, Davon Smith, 28, was charged with one count of sex trafficking a minor, one count of benefitting from a sex trafficking enterprise, one count of trafficking an adult by force, fraud or coercion and one count of possession with intent to distribute heroin. According to evidence presented at trial, Smith trafficked an adult and runaway juvenile victim in early 2019. Smith had a previous drug conviction and was on federal supervised release at the time he committed the offenses.
This is the second sex trafficking trial in the District of Alaska in recent months. Tristan Grant was convicted of several offenses including child sex trafficking and the production of child pornography following a bench trial before Senior U.S. District Judge Ralph R. Beistline. Grant’s sentencing is scheduled for September 15 at 9:00 a.m. in Anchorage.
“Individuals looking to profit from the sexual exploitation of children and adults in our community should be on notice that the consequences could include a life term of imprisonment in a federal prison,” said Acting U.S. Attorney Bryan Wilson, District of Alaska. “Our success in prosecuting these offenses results from the courage of the victims and the effective coordination between the Anchorage Police Department and the Federal Bureau of Investigation.”
“As demonstrated by this guilty verdict, recruiting adults and minors for commercial sex acts, and profiting from their exploitation, won’t be tolerated here in Alaska,” said Acting Special Agent in Charge Adam Pierce of the FBI’s Anchorage Field Office. “While we can’t erase the trauma these survivors experienced, by continuing to aggressively investigate sex trafficking crimes, and with a victim-centered approach, the FBI and our partners on the Child Exploitation and Human Trafficking Task Force are ensuring those who commit such crimes are held accountable.”
Smith is scheduled to be sentenced on November 15 in Anchorage. Smith faces a mandatory minimum sentence of 15 years and a maximum sentence of life imprisonment. He also faces a term of supervised release of not less than five years and up to life. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Federal Bureau of Investigation (FBI) and the Anchorage Police Department (APD) investigated this case as part of the FBI’s Child Exploitation and Human Trafficking Task Force. The task force marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children through sex trafficking, as well as to identify and recover victims.
Assistant U.S. Attorneys Jennifer Ivers and Adam Alexander are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices, Project Safe Childhood combines 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 visitwww.justice.gov/psc.
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Alleged Shooter Indicted on Felon in Possession of Firearm ChargesRead the Press Release
LOUISVILLE, KY – A federal grand jury in Louisville, Kentucky, returned an indictment today charging a Louisville man with being a felon in possession of a firearm.
According to court documents, Laron Weston 28, shot two individuals on July 26, 2021, in the area of 4900 block of Manslick Road, Louisville, Kentucky. The red Hummer that Weston was driving at the time of the shooting was located that day by Louisville Metro Police Department (“LMPD”) officers. An LMPD officer attempted to conduct a traffic stop, and Weston fled from the officer in the vehicle. After a brief pursuit, Weston wrecked into another vehicle. Weston then exited the vehicle and attempted to flee on foot. LMPD officers followed. After Weston pointed a handgun at one of the officers, a Glock 35 GEN4, .40 caliber pistol with a drum magazine, another LMPD officer tackled WESTON, taking him into custody.
Weston is charged with being a felon in possession of a firearm. The defendant is currently in state custody on a federal arrest warrant awaiting transfer to federal custody. If convicted, he faces a maximum penalty of no more than 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Special Agent in Charge R. Shawn Morrow of the Bureau of Alcohol, Tobacco and Firearm (ATF), made the announcement.
The ATF and LMPD are investigating the case.
Assistant U.S. Attorney Ann Marie Blaylock is 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.
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A Wilson Four-Time Felon Sentenced After Jury TrialRead the Press Release
RALEIGH, N.C. – A Wilson man was sentenced today to 84 months in prison for being a felon in possession of a firearm. On March 23, 2021, Terrance Anthony Moore, 35, was convicted of the charge by a jury.
According to court records and evidence presented at trial, Moore possessed a firearm on July 8, 2018. Moore was seen by law enforcement standing on the side of the road in Wilson, raising and lowering the firearm in the direction of nearby businesses. Moore took the stand and testified, among other things, that he had a number of previous felony convictions, including two common law robberies and a drug distribution offense, within the previous ten years. He also testified that his nickname was “Trigger” due to his violent temper.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Wilson Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case and Assistant U.S. Attorney Lucy Brown prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-CR-164-BO.
9 Defendants Indicted in Interstate Gun Trafficking SchemeRead the Press Release
Deputy Attorney General Lisa O. Monaco joined Audrey Strauss, the United States Attorney for the Southern District of New York, John B. DeVito, Special Agent in Charge of the New York Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), and Dermot Shea, Police Commissioner for the City of New York (“NYPD”), for the announcement today of a third superseding indictment charging JAMES THOMAS, a/k/a “Spazz,” DUVAUGHN WILSON, a/k/a “Dupree,” COURTNEY SCHLOSS, a/k/a “Bway,” a/k/a “Balenci,” KEN ALEXANDER, a/k/a “Ryu,” ARGAM TAJ, a/k/a “Sour,” SAMUEL TAJ, a/k/a “Sosa,” CHRISTOPHER MACHADO, a/k/a “Chris Elite,” HARLIE RAMOS, a/k/a “White Girl,” and JAMEL THOMAS, a/k/a “Mel,” with conspiracy to commit gun trafficking and gun trafficking, in connection with their involvement in a scheme to illegally transport firearms from Georgia for resale to residents of New York. THOMAS, WILSON, and SCHLOSS were also charged with interstate travel with intent to engage in gun trafficking. This case is assigned to United States District Judge Sidney H. Stein.
JAMEL THOMAS and ARGAM TAJ were arrested this morning in SDNY and will be presented before U.S. Magistrate Judge Robert W. Lehrburger later today. KEN ALEXANDER was arrested this morning in the District of Massachusetts and will be presented before a magistrate judge in Boston later today. WILSON, SCHLOSS, and JAMES THOMAS were previously charged; SCHLOSS and JAMES THOMAS are currently in custody. HARLIE RAMOS, SAMUEL TAJ, and CHRISTOPHER MACHADO remain at large.
Manhattan U.S. Attorney Audrey Strauss said: “Today’s arrests shut down the alleged gun pipeline of these nine defendants. These arrests should also send a message to anyone who is thinking about illegally selling guns to New Yorkers or illegally bringing guns to New York: We and our law enforcement partners are watching. And we will prosecute gun traffickers to the fullest extent of the law.”
ATF Special Agent in Charge John B. DeVito said: “The individuals named in the indictment are alleged to have participated in a trafficking scheme which flooded our New York City Streets with illegal firearms. Combatting firearms trafficking lies at the heart of ATF’s strategy to stop violent gun crime. Exploitation of Crime Gun Intelligence along with effective collaboration with our law enforcement partners will allow us to disrupt and dismantle groups such as this that in turn fuel the violence in our communities. I would like to thank the New York Police Department for their partnership on this case and the United States Attorney’s Office for their leadership.”
Police Commissioner Dermot Shea said: “The NYPD continues to work closely with our law enforcement partners to drive down gun violence and stop the trafficking of illegal firearms in New York City. I commend the work of the investigators and prosecutors whose hard work resulted in these arrests, firearms seizures, and indictment.”
According to the allegations in the Superseding Indictment unsealed today in Manhattan federal court:[1]
From at least in or around August 2020 up to and including April 2021, the defendants used Georgia resident DUVAUGHN WILSON, a/k/a “Dupree,” as a straw purchaser to buy at least 87 firearms from at least six federal firearms licensees (“FFLs”) in Georgia. Over the course of the scheme, during which WILSON completed approximately 30 different transactions, WILSON attested that he was the true purchaser of the firearms, when in fact he was buying the guns on behalf of the defendants, who in turn illegally resold many of the guns to others.
Prior to purchases, the defendants coordinated with WILSON to place orders for specific firearms and pay for the weapons using cash, mobile banking applications, and through wire payments. When communicating about the firearms, the defendants used coded language, referring to the weapons as “tvs,” “knocks,” and “situations.” In some instances, the defendants referred to the caliber or model of a firearm by referencing the jersey numbers of famous athletes.
After purchasing the weapons, WILSON transferred the firearms to defendants JAMES THOMAS, a/k/a “Spazz,” COURTNEY SCHLOSS, a/k/a “Bway” a/k/a “Balenci,” and others who (i) sold some of the guns in Georgia and (ii) transported other firearms, primarily by bus, to New York for resale. In many instances, the guns were transferred to members of the Brooklyn-based “Blixky Gang” – a group composed primarily of aspiring rappers. Some of these guns later appeared in music videos filmed by members of the Blixky Gang. The videos, which include some of the defendants charged today, show Blixky Gang members brandishing loaded firearms and displaying stacks of cash.
On some occasions, law enforcement successfully interdicted firearms being transported by the defendants before they reached New York. For example, in November 2020, law enforcement in South Carolina stopped a bus in Wellford, South Carolina, from which they seized five firearms, four pistol magazines, a high capacity .40 caliber magazine, and a nine-millimeter drum magazine – all of which were being transported by the defendants in a single backpack.
Law enforcement in New York City seized other firearms purchased in Georgia by WILSON. On at least two occasions, in the wake of violent crimes, the NYPD seized firearms trafficked to New York as part of this scheme. As alleged, in February 2021, the NYPD seized a gun that WILSON had bought after a fleeing suspect discharged it at responding officers in the Bronx. And in April 2021, following a shooting in the Bronx, the NYPD seized another pistol purchased by WILSON.
To date, law enforcement authorities across numerous jurisdictions have recovered a total of 18 firearms purchased by WILSON in the course of the scheme.
A chart containing the names, charges, and maximum and minimum penalties for the defendants is set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Ms. Strauss praised the outstanding investigative work of the ATF and the New York City Police Department. Ms. Strauss thanked Lisa O. Monaco, the Deputy Attorney General of the United States, for the Department of Justice’s support and leadership in the area of gun trafficking. Ms. Strauss also thanked local law enforcement partners as well as those in Georgia, Virginia, Pennsylvania, and South Carolina, including the ATF’s Greenville Field Office, Boston Field Division, and Atlanta Field Division; the Manhattan District Attorney’s Office; the New York/New Jersey Regional Fugitive Task Force; the Duncan Police Department, Wellford Police Department, and Spartanburg County Sheriff’s Office in South Carolina; the Clayton County Sherriff’s Office in Georgia; the Rockingham County Sherriff’s Office and Virginia State Police in Virginia; the Pennsylvania State Police; the United States Marshals Service; and the United States Attorney’s Offices in the Eastern District of New York, the Northern District of Georgia, the District of South Carolina, and the District of Massachusetts.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Ashley C. Nicolas and Matthew J. King are in charge of the prosecution.
The charges in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
Count
Charge
Defendants
Max. Penalty
1
Conspiracy to Commit (i) Gun Trafficking, and (ii) Illegal Transportation or Receipt in State of Residency of Firearm Purchased or Acquired Outside of State of Residency
JAMES THOMAS, a/k/a “Spazz,”
DUVAUGHN WILSON,
a/k/a “Dupree,”
COURTNEY SCHLOSS, a/k/a “Bway,” a/k/a “Balenci,”
KEN ALEXANDER, a/k/a “Ryu,”
ARGAM TAJ, a/k/a “Sour,”
SAMUEL TAJ, a/k/a “Sosa,”
CHRISTOPHER MACHADO, a/k/a “Chris Elite,”
HARLIE RAMOS, a/k/a “White Girl,”
JAMEL THOMAS, a/k/a “Mel”
Five years
2
Gun Trafficking
JAMES THOMAS, a/k/a “Spazz,”
DUVAUGHN WILSON,
a/k/a “Dupree,”
COURTNEY SCHLOSS, a/k/a “Bway,” a/k/a “Balenci,”
KEN ALEXANDER, a/k/a “Ryu,”
ARGAM TAJ, a/k/a “Sour,”
SAMUEL TAJ, a/k/a “Sosa,”
CHRISTOPHER MACHADO, a/k/a “Chris Elite,”
HARLIE RAMOS, a/k/a “White Girl,”
JAMEL THOMAS, a/k/a “Mel”
Five years
3
Interstate Travel With Intent to Engage in Gun Trafficking
JAMES THOMAS, a/k/a “Spazz,”
DUVAUGHN WILSON,
a/k/a “Dupree,”
COURTNEY SCHLOSS, a/k/a “Bway,” a/k/a “Balenci,”
10 years
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth in this release constitute only allegations, and every fact described should be treated as an allegation.
16 Defendants Charged for Drug Trafficking in LansingRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that 16 defendants were arrested and charged with drug-trafficking crimes arising out of the Lansing, Michigan area. Eight defendants were charged in a criminal complaint with conspiring to distribute heroin, fentanyl, and cocaine. Seven other defendants were charged in a different criminal complaint with conspiring to distribute methamphetamine and fentanyl. One defendant was charged by indictment with possession with intent to distribute methamphetamine, fentanyl, and cocaine base.
During the arrests of the defendants and execution of 15 search warrants, federal, state, and local investigators seized bulk quantities of cash, methamphetamine, heroin, and fentanyl. Investigators also seized more than twenty firearms.
Further details of the allegations can be found in the indictment, complaints and supporting affidavits, which were unsealed yesterday. Fourteen of the defendants made their initial appearances yesterday, and two defendants made their initial appearances today.
The charges are the result of a multi-agency investigation by federal, state, and local law enforcement. The Drug Enforcement Administration (DEA); Lansing Police Department (LPD), including Lansing Police Department Special Operations Section (LPD SOS); Homeland Security Investigations (HSI); Michigan State Police (MSP); Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); United States Marshals Service (USMS); and the Internal Revenue Service (IRS) have all supported the investigation. Over 150 federal, state, and local law enforcement officers from Michigan, Illinois, and Ohio assisted with the search warrants and arrests yesterday.
The charges in the criminal complaint are merely accusations and are not evidence of guilt. The defendants are presumed innocent until and unless proven guilty in a court of law. The government has the burden of proving guilt beyond a reasonable doubt.
The below images show some of the items recovered during the arrests and searches:
The following individuals were charged in the complaints and indictment:
Name
Age
Case No.
Edward Washington
39
1:21-mj-401
Demanuel Porter
33
1:21-mj-401
Jamar Street
30
1:21-mj-401
Latisha Mack
32
1:21-mj-401
Jerome Till
50
1:21-mj-401
Ebony Malone
36
1:21-mj-401
Michael Terry
33
1:21-mj-401
Angela Dority
46
1:21-mj-401
Davanti Heard-White
30
1:21-mj-410
John Humphrey
32
1:21-mj-410
Marquise Brooks
33
1:21-mj-410
Miguel Schooler
24
1:21-mj-410
Arnon Lake
34
1:21-mj-410
Demetrus Heard
29
1:21-mj-410
Jeffrey Humphrey
52
1:21-mj-410
Jordan Suttles
30
1:21-cr-141
Tuesday 3 August 2021
U.S. Foreign Service Member Indicted for Engaging in Illicit Sexual Conduct in the Philippines and Possession of Child PornographyRead the Press Release
ALEXANDRIA, Va. – A federal grand jury in the Eastern District of Virginia returned an indictment today charging a member of the Foreign Service with engaging in illicit sexual conduct in a foreign place and possession of child pornography.
According to the indictment and court documents, Dean Cheves, 61, between September 2020 and February 2021, was a member of the U.S. Foreign Service, serving at the U.S. Embassy in the Philippines. While in the Philippines, Cheves allegedly met a 16-year-old online. Court documents further detail that Cheves allegedly engaged in sexual activity with the minor on two occasions, knowing the minor’s age, and produced cell phone videos of himself engaging in the sex acts each time. The videos were found on Cheves’s devices seized from his embassy residence while in the Philippines. Between February 2021 and March 2021, he also allegedly possessed child pornography.
Cheves is charged with one count of engaging in illicit sexual conduct in a foreign place and one count of possessing child pornography in the special maritime and territorial jurisdiction of the United States or on lands owned or leased by the United States. Cheves previously made his initial court appearance on July 6, 2021 before U.S. Magistrate Judge Ivan D. Davis of the U.S. District Court for the Eastern District of Virginia.
If convicted, he faces a maximum penalty of up to 30 years in prison on count one and up to 10 years in prison on count two. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Raj Parekh of the Eastern District of Virginia; Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; and Mark Sullo, Assistant Director for Domestic Operations, U.S. Department of State’s Diplomatic Security Service, made the announcement.
The Diplomatic Security Service, Office of Special Investigations is investigating the case.
Assistant U.S. Attorney Lauren Pomerantz Halper and Trial Attorney Gwendelynn Bills of the Justice Department’s Child Exploitation and Obscenity Section are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-cr-177.
U.S. Foreign Service Member Indicted for Engaging in Illicit Sexual Conduct in the Philippines and Possession of Child PornographyRead the Press Release
A federal grand jury in the Eastern District of Virginia returned an indictment today charging a member of the U.S. Foreign Service with engaging in illicit sexual conduct in a foreign place and possession of child pornography.
According to the indictment and court documents, Dean Cheves, 61, was a member of the U.S. Foreign Service serving at the U.S. Embassy in the Philippines between September 2020 and February 2021. While in the Philippines, Cheves allegedly met a 16-year-old online. Court documents further detail that Cheves allegedly engaged in sexual activity with the minor on two occasions, knowing the minor’s age, and produced cell phone videos of himself engaging in the sex acts each time. The videos were found on Cheves’s devices seized from his embassy residence while in the Philippines. Between February 2021 and March 2021, he also allegedly possessed child pornography.
Cheves is charged with one count of engaging in illicit sexual conduct in a foreign place and one count of possessing child pornography in the special maritime and territorial jurisdiction of the United States or on lands owned or leased by the United States. Cheves previously made his initial court appearance on July 6 before U.S. Magistrate Judge Ivan D. Davis of the U.S. District Court for the Eastern District of Virginia. If convicted, he faces a maximum penalty of up to 30 years in prison on count one, and up to 10 years in prison on count two. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia made the announcement and Assistant Director for Domestic Operations Mark Sullo of the U.S. Department of State’s Diplomatic Security Service made the announcement.
The Diplomatic Security Service, Office of Special Investigations is investigating the case.
Trial Attorney Gwendelynn Bills of the Justice Department’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Lauren Pomerantz Halper of the U.S. Attorney’s Office for the Eastern District of Virginia are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney’s Office to take part in National Night OutRead the Press Release
WHEELING, WEST VIRGINIA – The U.S. Attorney’s Office, Northern District of West Virginia, will join law enforcement, community leaders and residents on Tuesday, August 3rd at events in Martinsburg, Bridgeport, and Wheeling to celebrate the 37th annual National Night Out crime prevention event.
“Our law enforcement partners across the district work tirelessly to protect our communities. We support them on this day and every day in their efforts,” said Randolph J. Bernard, Acting U.S Attorney, Northern District of West Virginia. “Our staff will spread a message of drug prevention and positivity at this year’s event. We are also giving away one backpack filled with school supplies at each location to support the importance of education.”
The U.S. Attorney’s Office will participate at Wheeling Park’s Ice Rink, Martinsburg’s War Memorial Park, and Bridgeport’s Recreational Complex, with each event from 6:00-8:00 p.m.
National Night Out is a community-building and crime prevention campaign that promotes collaborative law enforcement-community partnerships and neighborhood camaraderie. Thousands of communities nationwide will participate in neighborhood block parties, festivals, cookouts, safety demonstrations, seminars, and activities that heighten crime and drug prevention awareness and generate support for and participation in local anticrime efforts. Events such as these help to strengthen neighborhood spirit, police-community partnerships, and demonstrate a shared commitment for strong and safe communities.
U.S. Attorney’s Office to Take Part in Spokane’s National Night Out Against CrimeRead the Press Release
Spokane – Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that on Tuesday, August 3rd, members from his office will participate in community events held as part of Spokane’s National Night Out Against Crime.
National Night Out is an annual community-building campaign that promotes police-community partnerships and neighborhood camaraderie to make our neighborhoods safer, more caring places to live. National Night Out enhances the relationship between neighbors and law enforcement while bringing back a true sense of community. Furthermore, it provides a great opportunity to bring law enforcement and the community together under positive circumstances.
“Keeping our communities safe is a top Justice Department priority, as it is for state, local and Tribal police departments across the country,” said Attorney General Merrick B. Garland. “Law enforcement is most effective when it has the trust and support of the communities it serves. That is why events like National Night Out are so important and effective; they help to bridge the gap between neighbors and their police departments in a positive and informal setting.”
Joseph H. Harrington said, “National Night Out Against Crime is an outstanding opportunity for neighbors to gather with their law enforcement and community partners. When such groups gather they demonstrate that battling crime in our communities is truly a collective responsibility. The United States Attorney’s Office for the Eastern District of Washington looks forward to joining others tonight to help continue to spread the important message that we are all in this together.”
For more information visit www.spokanecops.org
U.S. Attorney's Statement on Second Anniversary of Walmart ShootingRead the Press Release
Ashley C. Hoff, the United States Attorney for the Western District of Texas, releases this statement on the second anniversary of the mass shooting in an El Paso Walmart that resulted in the deaths of 23 individuals and injured numerous others.
“We remain steadfast in pursuing justice for the victims, their families, the El Paso community, the State of Texas, and our Nation as a whole for the suffering caused by this incomprehensible act of hate. Our thoughts remain with those who have had their lives changed forever as we reflect on the memories of those we have lost.”
Two Montana men charged with $1 million COVID-19 relief fraud schemeRead the Press Release
BILLINGS – Two Montana men were arraigned recently on charges in connection with a scheme to defraud a bank of approximately $1 million in Paycheck Protection Program (PPP) loans and to use those funds for their personal benefit, including buying property and vehicles, Acting U.S. Attorney Leif M. Johnson said today.
Trevor Gene Lanius-McLeod, also known as Trevor Gene McLeod, 48, of Laurel, and Kasey Jones Wilson, 29, of Helena, each pleaded not guilty to an indictment charging them with bank fraud and with engaging in monetary transactions in property derived from specified unlawful activity. If convicted of the most serious crime, the defendants face a maximum 30 years in prison, a $250,000 fine and three years of supervised release.
Lanius-McLeod was arraigned on July 27 before U.S. Magistrate Judge John T. Johnston in Great Falls. Wilson was arraigned on July 27 before U.S. Magistrate Judge Timothy J. Cavan in Billings. Both defendants were released pending further proceedings.
The government alleged in court documents, that from about April 2020 to December 2020, the defendants applied for and received four PPP loans totaling $1,043,000 through Valley Bank of Helena, a Division of Glacier Bank, on behalf of four business entities. Lanius-McLeod applied for funds as the authorized representative of T. McLeod Holdings LLC, Hilltop Estates LLC, and Renovated Montana Properties LLP. Lanius-McLeod and Wilson applied for funds as the authorized representatives of Step Above Management LLC. In the applications, the defendants made numerous false statements about having paid payroll taxes and having employees. In promissory notes, the defendants agreed to use the loan funds for payroll costs, costs related to group health care benefits and insurance premiums, rent, utilities, interest on payments on debt and refinancing a Small Business Administration Economic Injury Disaster Loan. Instead, the defendants spent the funds on personal expenses for their private benefit. If convicted, the defendants face the forfeiture of property related to the crimes, including property in East Helena, four vehicles and a travel trailer.
The PPP program, which is part of the federal Coronavirus Aid, Relief and Economic Security (CARES) Act, provided emergency assistance to small businesses for job retention and certain other expenses.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Assistant U.S. Attorney Colin M. Rubich is prosecuting the case, which was investigated by the IRS-Criminal Investigation and FBI, with assistance from the U.S. Treasury Inspector General for Tax Administration and U.S. Secret Service.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
PACER case reference. 21-07.
XXX
Trimble County Man Sentenced to 180 Months for the Distribution of Child PornographyRead the Press Release
FRANKFORT, Ky. – A Bedford, Ky., man, Leonard J. Andrew, Jr., 36, was sentenced on Tuesday to 180 months in federal prison, by U.S. District Judge Gregory VanTatenhove, for the distribution of child pornography.
According to his plea agreement, on February 7, 2018, Andrew admitted to sending multiple explicit videos and images of minors to at least two different recipients via Facebook Messenger. The videos and images sent by Andrew contained images of minors engaged in sexual activity and were sent to recipients outside of Kentucky.
Andrew pleaded guilty in November 2020.
Under federal law, Andrew must serve 85 percent of his prison sentences. Andrew will be under the supervision of the U.S. Probation Office for 25 years, following his release
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Jerry Templet, Special Agent in Charge of Homeland Security Investigations (HSI); and Colonel Phillip Burnett, Commissioner, Kentucky State Police; jointly announced the sentences.
The investigation was conducted by the DHS-HSI and KSP. The United States was represented by Assistant U.S. Attorney Erin Roth.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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