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Thursday 29 July 2021
Oskaloosa Man Sentenced to Federal Prison for Distribution of Methamphetamine Resulting in DeathRead the Press Release
DES MOINES – An Oskaloosa man, Cody James Vancenbrock, age 28, was sentenced on July 29, 2021, by United States District Court Judge Rebecca Goodgame Ebinger, to 240 months in prison for Distribution of Methamphetamine Resulting in Death. Following imprisonment, Vancenbrock is ordered to serve five years of supervised release, pay restitution, and pay $100 to the Crime Victims Fund. Acting United States Attorney Richard D. Westphal made this announcement.
According to court documents, on August 4, 2019, Vancenbrock intentionally injected methamphetamine at an Oskaloosa apartment into a twenty-four-year-old female victim. Soon after, the methamphetamine injected by Vancenbrock caused the death of the victim. After the victim died in the apartment, Vancenbrock and another person carried the victim’s body out of the apartment, placed her in a vehicle, drove to a location in rural Mahaska County, and disposed of the body in the Skunk River. The body was later found and recovered on August 6, 2019.
The United States Attorney’s Office-Southern District of Iowa prosecuted this case. This investigation was conducted by the Iowa Department of Public Safety-Division of Criminal Investigation, the Oskaloosa Police Department, the Mahaska County Sheriff’s Office.
North Carolina Man Pleads Guilty to Conspiring to Distribute Suboxone, Oxycodone, other Pain MedicationsRead the Press Release
ABINGDON, Va. – A Dobson, North Carolina man pleaded guilty yesterday to conspiring to distribute medically illegitimate prescriptions for Schedule II opioids and Suboxone, as well as conspiring to use, in the course of the distribution of controlled substances, the DEA registration number of another person.
According to court documents, Charles Wilson Adams Jr., 50, worked for “Company L” that operated medical clinics in the Western District of Virginia, including in the Galax, Lynchburg, and Christiansburg areas. The clinic focused on pain management and opioid addiction treatment.
Adams worked as a counselor for Company L, though he had not applied to the Virginia Board of Counseling to become a Certified Substance Abuse Counselor. Adams was referred to inside Company L as “Dr.” but has never been a medical practitioner or possessed authority to prescribe controlled substances.
Adams admitted that he and other non-medical professionals exerted influence or control over medical decisions and treatment of patients, including the prescribing of Schedule II pain medications and Suboxone, a Schedule III drug used to treat opioid addiction.
As part of his plea, Adams also acknowledged Company L employees pre-signed blank prescriptions for distribution to patients without office visits. Further, at the direction of Company L’s owner and others, employees used DEA registration numbers of medical providers to prescribe Suboxone to patients, even when those providers were in other cities or states and did not see the patients. Adams was aware of Company L’s practices and their illegitimacy yet took part in them anyway.
“Adams chose to use his position to assist in the illegal distribution of powerful opioids rather than their use for legitimate medical purposes, thus causing additional harm to the community,” Acting United States Attorney Bubar stated today. “We are grateful for the extensive investigation conducted by federal, state and local law enforcement located in three states, whose hard work is holding the defendant accountable for his crimes.”
“This individual put the health of patients and his community in jeopardy by participating in the prescribing of dangerous drugs and other medical treatments indiscriminately when he was not qualified to do so,” said Attorney General Herring. “The opioid crisis continues to devastate communities and families across Virginia, and we will not tolerate healthcare providers who do not handle or prescribe highly addictive drugs appropriately and safely. I want to thank our local, state, and federal partners for their help on this important case as well as my award-winning Medicaid Control Fraud Unit for their continued hard work and dedication.”
“Prescription drugs are to be prescribed for legitimate medical reasons by appropriately licensed medical professionals,” said Special Agent in Charge Maureen Dixon of the Office of the Inspector General for the Department of Health and Human Services. “HHS-OIG will continue to work with our federal, state and local law enforcement partners to keep our communities safe from illegal prescription drugs.”
“Our investigation into Adams’ illegal distribution of highly addictive pain medication at the height of an overdose epidemic, emphasizes his criminal indifference for human life,” said Jared Forget, Special Agent in Charge of the DEA’s Washington Field Office. “Today’s guilty plea emphasizes our commitment to the tireless work of investigating and prosecuting those responsible for fueling opioid addiction and deadly overdoses in our area – saving lives in our communities.”
Adams pleaded guilty to one count of conspiring to use, in the course of the distribution of controlled substances, the DEA registration number of another, one count of conspiring to distribute Suboxone, and one count of conspiring to distribute oxycodone, hydrocodone, morphine, methadone, and fentanyl. He is scheduled to be sentenced on October 29, 2021. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Drug Enforcement Administration, including offices in southwest Virginia, North Carolina, and South Carolina, Virginia Medicaid Fraud Control Unit, and the Department of Health and Human Service are investigating the case, with the assistance of the Carroll County (Va.) Sheriff’s Office, Mt. Pleasant (S.C.) Police Department, Christiansburg (Va.) Police Department, Mt. Airy (N.C.) Police Department, Amherst County (Va.) Sheriff's Office, and the U.S. Attorney Offices of the Middle District of North Carolina and District of South Carolina.
Assistant U.S. Attorneys S. Cagle Juhan, Janine Myatt, and Randy Ramseyer are prosecuting the case, with assistance from Trial Attorney Andrew Barras, ARPO North, Criminal Division, Fraud Section.
New Zealand Man Pleads Guilty to Production of Child PornographyRead the Press Release
RICHMOND, Va. – A New Zealand man pleaded guilty today to production of child pornography.
According to court documents, between February and March 2018, Troy George Skinner, 28, interacted with a minor child online and used the child to produce numerous videos and image files of child pornography.
“Although no prosecution can undo the irreparable damage the defendant caused, we hope it is some measure of relief to the victim, the victim’s family, and the community that the defendant now faces lengthy and significant consequences for this heinous conduct when he is sentenced by the Court,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “We will continue to hold accountable those who exploit and prey on vulnerable members of our community.”
“The FBI will aggressively investigate any matter where persons prey on our children, and work with our partners to hold these predators accountable with the goal of removing them from our community,” said Special Agent in Charge Stanley M. Meador of the Federal Bureau of Investigation’s (FBI) Richmond Field Office. “Mr. Skinner's solicitation of this minor victim is unfortunately not uncommon for sexual predators; what is rather unusual is for a predator to travel this extensively to gain access to their victim. Had it not been for the intervention of an adult, this incident could have been much worse. We encourage anyone who may have fallen victim to a similar situation of sharing images or videos, to report it to law enforcement as soon as possible, so we can help end the trauma.”
According to the Statement of Facts filed with the plea agreement, on June 20, 2018, Skinner departed from Auckland, New Zealand, en route to Virginia. On June 22, 2018, Skinner traveled to the victim’s home in Goochland, the location of which he learned in his online conversations with the minor victim. Upon arriving at the victim’s home in Goochland, the defendant approached the house and attempted to speak to family members inside. Skinner threw a paving stone through the glass window of the kitchen door to the house and attempted to enter. After several verbal warnings, the victim’s mother fired a handgun to prevent Skinner from entering the home, striking him once in the neck. Skinner fled from the house but collapsed in a neighbor’s yard, where he was apprehended by members of the Goochland County Sheriff’s Office.
According to additional court filings submitted by the government, a search at the scene of Skinner’s belongings revealed duct tape, pepper spray, and a folding pocketknife. Officials also seized two mobile phones from Skinner, which investigators later determined contained images of child pornography depicting the minor victim. U.S. authorities also made a mutual legal assistance request to officials with the government of New Zealand. New Zealand investigators executed a search warrant on the defendant’s apartment in New Zealand and conducted a forensic examination of the defendant’s laptop, and later provided to U.S. investigators a thumb drive containing 120 video and 56 image files depicting the minor victim.
Skinner pleaded guilty to production of child pornography and is scheduled to be sentenced on February 11, 2022. He faces a mandatory minimum term of 15 years and a maximum term of 30 years in prison. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after U.S. District Judge M. Hannah Lauck accepted the plea.
Significant and valuable assistance was provided by the Government of New Zealand and the Goochland County Sheriff's Office.
Assistant U.S. Attorneys Brian R. Hood and Katherine Lee Martin 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. 3:19-cr-19.
New York Woman Sentenced to 10 Months’ Imprisonment for Counterfeit CurrencyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on July 29, 2021, Courtney Murray, age 23, of Slingerlands, New York, was sentenced to 10 months of imprisonment and three years of supervised release, by United States District Judge Robert D. Mariani, for conspiring to pass counterfeit currency.
According to Acting United States Attorney Bruce D. Brandler, Murray pleaded guilty to conspiring with her codefendant, Rashaun Ferguson, to passing and attempting to pass approximately $14,000 of counterfeit currency between September 2019 and April 2020. The conduct occurred at multiple retail locations throughout Pennsylvania, New York, New Jersey, and Maryland. The conspirators also were found with fake identification, fraudulent credit card equipment, and marijuana.
Ferguson also pleaded guilty to conspiring to pass counterfeit currency, and is awaiting sentencing.
The case was investigated by the United States Secret Service and various state and local police departments. Assistant U.S. Attorney Phillip J. Caraballo prosecuted the case.
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New Orleans Man Who Illegally Possessed A Machinegun is Sentenced to Ninety Months ImprisonmentRead the Press Release
NEW ORLEANS, LOUISIANA – On July 28, 2021, United States District Judge Lance M. Africk sentenced OLIN GRANT, JR., to ninety months in the federal Bureau of Prisons for being in possession of a machinegun and a firearm in furtherance of a drug trafficking crime, in violation of the Federal Gun Control Act, announced U.S. Attorney Duane A. Evans.
GRANT was charged on June 20, 2019 and pled guilty in a plea agreement with the government on November 20, 2019. In one count, he pled guilty to possession of a machinegun, in violation of Title 18, United States Code, Section 922(o). For the purposes of the National Firearms Act, the term “machinegun” means any weapon which shoots, is designed to shoot, or can readily be restored to shoot, automatically more than one shot without manual reloading, by a single function of the trigger; the frame or receiver of any such weapon; any part designed and intended solely and exclusively or combination of parts designed and intended for use in converting a weapon into a machinegun; or any combination of parts from which a machinegun can be assembled if such parts are in the possession or under the control of a person. Judge Africk sentenced GRANT to thirty years on that count, to be followed by three years of supervised release.
In another count, GRANT also pled guilty and was sentenced to possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c). Judge Africk sentenced GRANT to sixty years, to run consecutive to any other terms of imprisonment, and five years of supervised release. GRANT was also ordered to pay a $200 mandatory special assessment fee for both counts.
This case was brought as part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence- based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney Duane A. Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Jefferson Parish Sheriff’s Office, and the Gretna Police Department. The prosecution was handled by Assistant United States Attorneys Brittany Reed and Melissa Bücher.
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Muskogee Resident Convicted of Aggravated Sexual AbuseRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that Russell Garvis Griffith Jr., age 47, of Muskogee, Oklahoma was found guilty by a federal jury of Aggravated Sexual Abuse in Indian Country, in violation of Title 18, United States Code, Sections 1151, 1153, 2241(c), and 2246(2)(C); Sexual Abuse of a Minor in Indian Country, in violation of Title 18, United States Code Sections 1151, 1153, 2243(a), and 2246(2)(A); and Sexual Abuse in Indian Country, in violation of Title 18, United States Code, Sections 1151, 1153, 2242(1), and 2246(2)(A). The jury trial began with testimony on Monday, July 26, 2021 and concluded on Wednesday, July 28, 2021 with the guilty verdicts. The defendant is facing imprisonment for not less than 30 years to life for the crimes the jury found he committed.
During the trial, the United States presented evidence that the defendant sexually abused the victim for approximately fourteen years, beginning when she was nine years old. The victim also testified that when she was twenty-two years old, the defendant forcibly raped her.
The United States Attorney’s Office for the Eastern District of Oklahoma ultimately prosecuted the case because the defendant is a member of a federally-recognized Indian tribe and the crime occurred in Muskogee County, within the boundaries of the Muscogee (Creek) Nation, and within the Eastern District of Oklahoma.
The guilty verdicts were the result of an investigation by the Muskogee Police Department and the Federal Bureau of Investigation.
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma in Muskogee, presided over the trial and ordered the completion of a presentence report. Sentencing will be scheduled following completion of the report. Griffith was remanded to the custody of the United States Marshal pending the imposition of sentencing.
Assistant United States Attorney Morgan Muzljakovich and Assistant United States Attorney Michael Cooper represented the United States.
Montgomery Man Convicted for Being A Felon in Possession of A FirearmRead the Press Release
Montgomery, Ala. – On Tuesday, July 27, 2021, Lonnie Dontae Mitchell, 36, from Montgomery, Alabama, was convicted by a federal jury for being a felon in possession of a firearm, announced Acting U.S. Attorney Sandra J. Stewart.
According to court records and evidence presented at trial, on September 16, 2020, law enforcement executed a search warrant on a Montgomery residence to search for evidence of suspected drug and human trafficking activity. While clearing the house, law enforcement made contact with Mitchell in the kitchen and ordered that he get on the floor. Mitchell complied and when agents approached him, they discovered a Glock .9mm handgun on the floor where he had previously been standing. While searching the residence, law enforcement seized a number of items related to the sale of illegal drugs, including a batch of small plastic bags and three scales located on the kitchen table, and an additional scale in one of the back bedrooms. In the bedroom next to the kitchen, officers found a black glove next to a wallet containing Mitchell’s driver's license. When agents looked inside the glove, they found multiple bags containing suspected narcotics. Mitchell has multiple felony convictions on his record, including two for first degree robbery and one for possession of a firearm by a prohibited person. Federal law prohibits anyone convicted of a felony from possessing firearms.
Following this conviction, Mitchell is facing a maximum sentence of ten years in prison. His sentencing hearing has not yet been scheduled. In addition, court documents also show that on July 14, 2021, a federal grand jury indicted Mitchell on multiple sex trafficking charges. An indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt. Mitchell is scheduled to be arraigned on the sex trafficking charges on August 2, 2021.
This case was investigated by the Alabama Law Enforcement Agency (ALEA), with assistance from the U.S. Department of Homeland Security’s Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Montgomery Police Department, and the Montgomery County Sheriff’s Office. Assistant United States Attorneys James P. Lamb and Brandon W. Bates prosecuted the case.
Mineral County woman sentenced for methamphetamine distributionRead the Press Release
ELKINS, WEST VIRGINIA – Samantha Jo Guinn, of Keyser, West Virginia, was sentenced today to 60 months of incarceration for methamphetamine distribution, Acting U.S. Attorney Randolph J. Bernard announced.
Guinn, age 33, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine” in October 2019. Guinn admitted to having more than 50 grams of “crystal” methamphetamine, also known as “ice,” in January 2019 n Grant County.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Potomac Highlands Drug and Violent Crime Drug Task Force, a HIDTA-funded initiative, and the Grant County Sheriff’s Office investigated.
U.S. District Judge Thomas S. Kleeh presided.
Meridian Woman Sentenced to 2 Years in Prison for Being a Convicted Felon in Possession of a FirearmRead the Press Release
Jackson, Miss. – A Meridian woman was sentenced today to 24 months in prison for possession of a firearm by a convicted felon, announced Acting U.S. Attorney Darren J. LaMarca and Acting Special Agent in Charge Paul Brown with the Federal Bureau of Investigation in Mississippi.
According to court documents, Mia Francine Sims, 54, sold narcotics to individuals on several occasions from her Meridian residence over a period of months, beginning in July of 2019. A joint team of Meridian Police officers and FBI agents conducted a search warrant on the residence and discovered a handgun, along with relatively small amounts of cocaine and methamphetamine. Though Sims was not home at the time of the search, witnesses confirmed that Sims was the only resident of the home. Further investigation revealed that Sims had two prior felony drug convictions and is prohibited from possessing a firearm.
Sims was indicted for being a felon in possession of a firearm. She pled guilty on April 22, 2021.
The Federal Bureau of Investigation and the Meridian Police Department investigated the case.
Assistant U.S. Attorney Charles W. Kirkham prosecuted the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Mercer County Man Admits Interfering with Law Enforcement Officers During Civil DisorderRead the Press Release
TRENTON, N.J. – A Mercer County, New Jersey, man today admitted attempting to interfere with law enforcement officers during a civil disorder when he attempted to set fire to a police vehicle during a riot in the City of Trenton, Acting U.S. Attorney Rachael A. Honig announced.
Earlja J. Dudley, 28, of Trenton, New Jersey, pleaded guilty before U.S. District Judge Brian R. Martinotti to an information charging him with one count of attempting to obstruct, impede, or interfere with law enforcement officers during a civil disorder affecting commerce.
According to documents filed in this case and statements made in court:
On May 31, 2020, large-scale protests were held throughout the United States, including in Trenton, in response to the death of George Floyd. Although the May 31st protest in Trenton was peaceful earlier in the day, violence erupted later. A group of individuals proceeded down East State Street in downtown Trenton and began to riot, smashing store fronts, looting stores, and attacking multiple marked Trenton Police Department vehicles parked on the 100 Block of East State Street.
A City of Trenton street camera and other video footage taken by an individual present on the street captured Earlja Dudley and an unidentified male open the hood of a police vehicle. Dudley was then joined by another unidentified male who ignited an object that Dudley was holding. Dudley then placed the flaming object into the engine well of the police vehicle attempting to set the police vehicle on fire. Law enforcement later identified Dockery through analysis of street camera and other video footage and he was arrested on Aug. 5, 2020.
Dudley pleaded guilty to one count of attempting to obstruct, impede, or interfere with law enforcement officers during a civil disorder affecting commerce, on May 19, 2021.
The charge of attempting to interfere with law enforcement officers during a civil disorder to which Dudley has now pleaded guilty pleaded guilty carries a maximum penalty of five years in prison and a maximum fine of $250,000.
Dudley is the fourth of four individuals charged in connection with the May 31, 2020 protest in Trenton, New Jersey to have entered a guilty plea. Defendant Killian F Melecio was sentenced in June of 2021 to a term of 28 months imprisonment and three years supervised release, by U.S. District Judge Brian R. Martinotti. Defendants Kadeem A. Dockery and Justin D. Spry and are scheduled to be sentenced in September and October, 2021.
Acting U.S. Attorney Honig credited special agents of the FBI and task force officers of the Joint Terrorism Task Force in Newark, under the direction of Special Agent in Charge George M. Crouch Jr., with the investigation leading to today’s guilty plea. She also thanked officers of the Trenton Police Department, under the direction of Police Director Steve E. Wilson; troopers of the New Jersey State Police, under the direction of Col. Patrick J. Callahan; and officers of the New Jersey Department of Corrections, under the direction of Commissioner Marcus O. Hicks, for their assistance.
The government is represented by Assistant U.S. Attorneys Alexander E. Ramey and Michelle S. Gasparian of the U.S. Attorney’s Office’s Criminal Division in Trenton.
Defense counsel: Lisa Van Hoeck., Trenton, New Jersey
Mercer County Business Owner Sentenced to Prison for Tax EvasionRead the Press Release
PITTSBURGH, PA - A resident of Hermitage, PA, has been sentenced in federal court to 18 months of incarceration followed by 18 months of supervised release on his conviction of tax evasion, Acting United States Attorney Stephen R. Kaufman announced today. The Court also imposed a fine of $10,000.00 and ordered restitution to the IRS in the amount of $510,235.08.
United States District Judge W. Scott Hardy imposed the sentence on Dustin Golub, 35, of Hermitage, PA 16148.
According to information presented to the court, for the calendar years 2016, 2017 and 2018, Golub intentionally failed to report in excess of $3.5 million in gross receipts from his business, Penn Ohio Roofing and Siding. Instead of depositing all of his business receipts into his business operating accounts, he attempted to conceal receipts by spreading them among nine different bank accounts, including personal accounts and accounts in the names of children. Additionally, he structured bank transactions to keep them under $10,000.00 in order to avoid the bank’s IRS reporting requirements.
Assistant United States Attorney Lee J. Karl prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the Internal Revenue Service – Criminal Investigation for the investigation leading to the successful prosecution of Golub.
Media Advisory In-Person Press ConferenceRead the Press Release
WHEN: Friday, July 30, 2021 at 11:00 a.m.
WHERE: Nash County Sheriff’s Office
222 W. Washington Street
Nashville, NC 27856
Re: Prosecutions of Heroin Trafficking Organization
The United States Attorney’s Office announces a press conference to discuss the successful prosecution of a drug trafficking organization that brought large amounts of heroin from New Jersey to Nash, Edgecombe, and Halifax Counties. The lead defendant was responsible for trafficking almost 10 kilograms of heroin.
In addition to Acting United States Attorney G. Norman Acker, III, we anticipate members of the Sheriffs of Nash, Edgecombe, and Halifax Counties along with members of participating police departments to participate in this event.
Credentialed members of the media are invited to attend. For additional information, and to RSVP your intentions to attend this event, please email Don Connelly at [email protected].
Maryland Man Sentenced to Prison and Home Detention on Fraud Conspiracy Charge for Stealing over $1.3 MillionRead the Press Release
WASHINGTON – Mark L. Lezell, 74, of Rockville, Md., has been sentenced to 12 months in prison and 12 months of home detention for his role in a fraud conspiracy targeting companies and individuals from across the United States and around the world.
The announcement was made today by Acting U.S. Attorney Channing D. Phillips, Robert Bornstein, Acting Special Agent in Charge of the FBI Washington Field Office Criminal Division, and Darrell J. Waldon, Acting Special Agent in Charge of the IRS-CI Washington DC Field Office.
Lezell pled guilty in June 2016, in the U.S. District Court for the District of Columbia, to one count of conspiracy to commit wire fraud and one count of failure to file a tax return. He was sentenced on July 28, 2021, by the Honorable Richard J. Leon. In addition to his prison term, the Court ordered Lezell to pay restitution in the amount $1,787,678 as well as a forfeiture money judgment in the amount of $651,955. Following his prison term, he will be placed on 36 months of supervised release, 12 months of which will be on home detention.
According to the government’s evidence, beginning in or about 2009, and continuing through at least 2012, Lezell and his co-conspirator, Issam Abu-Ghosh, conducted a scheme to defraud individuals, companies, and other types of entities, to obtain money. The scheme was conducted in a similar manner for many of the victims. In nearly every instance, Abu-Ghosh represented to the victims that Abu-Ghosh, through his solely-owned company, could obtain a loan for the victims through various connections that he maintained. The loans needed by the victims were often for millions of dollars and to fund large projects. Prior to soliciting potential lenders, Abu-Ghosh required that each victim provide a good faith deposit to be held in escrow to show the victim’s good intentions toward obtaining the loan. The good faith deposits ranged from $15,000 to $250,000.
Lezell, an attorney, acted as the escrow agent for the good faith deposits. Once an agreement was reached between the victim and Abu-Ghosh, the terms and conditions were memorialized in a loan commitment contract. The loan commitment included an escrow agreement, which identified Lezell as the escrow agent and provided conditions under which the escrow agreement would operate, including the transfer of the good faith deposit to a bank account held by Lezell. In most cases, the escrow agreement required that Lezell hold the money with the understanding that the funds would be returned to the victim if Abu-Ghosh failed to identify and provide a lender. Once the victim wired the good faith deposit to the escrow account, most of that money was transferred to Abu-Ghosh within days.
Lezell obtained over $1,653,955 in good faith deposits into his account. No loans were ever obtained by Abu-Ghosh. Instead, the good faith deposits were used by Abu-Ghosh and Lezell for their personal benefit or to further the scheme. Lezell also admitted that he did not file a tax return with the Internal Revenue Service for the tax year 2008, despite receiving a gross income of approximately $350,073.02.
Abu-Ghosh, 63, of Leesburg, Va., plead guilty in September 2018 and was sentenced in January 2020 to 60 months of incarceration, followed by 60 months of supervised release, an order to pay restitution in the amount of $1,358,980, as well as a forfeiture money judgment in the amount of $952,000.
In announcing the sentence, Acting U.S. Attorney Phillips, Acting Special Agent in Charge Bornstein, and Acting Special Agent in Charge Waldron commended the work performed by those who investigated the case from the IRS-Criminal Investigation Division and the FBI’s Washington Field Office. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Diane Lucas and Michelle A. Zamarin, and former Assistant U.S. Attorney Michael Marando, who prosecuted the case.
Martinsburg man admits to role in drug trafficking ringRead the Press Release
MARTINSBURG, WEST VIRGINIA – Sanford Fayton Venable, of Martinsburg, West Virginia, has admitted to his involvement in a drug conspiracy that spanned several states, Acting U.S. Attorney Randolph J. Bernard announced.
Venable, 51, pleaded guilty today to one count of “Distribution of Forty Grams or More of a Heroin and Fentanyl Mixture.” Venable admitted to selling more than 40 grams of a heroin and fentanyl mixture in November 2019 in Berkeley County. In a separate case, Venable pleaded guilty to one count of “Distribution of 28 grams or More of Cocaine Base.” Venable admitted to selling more than 28 grams of cocaine base, also known as “crack,” in August 2019 in Berkeley County.
Venable faces at least five years and up to 40 years of incarceration and a fine of up to $5,000,000 for each count. 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.
This case is the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Assistant U.S. Attorney Lara Omps-Botteicher and Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, are prosecuting the cases on behalf of the government. The FBI; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms & Explosives; and the Eastern Panhandle Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Find the related press release here: https://www.justice.gov/usao-ndwv/pr/25-charged-six-state-drug-conspiracy-involving-heroin-fentanyl-cocaine
Man Sentenced for Methamphetamine and Heroin Drug ConspiracyRead the Press Release
An Arizona man was sentenced Wednesday in federal court for taking part in a methamphetamine and heroin drug conspiracy, announced Acting U.S. Attorney Clint Johnson.
Anthony Ward Irving pleaded guilty to drug conspiracy on Nov. 25, 2020, and today was sentenced to 5 years in federal prison by U.S. District Judge Claire V. Eagan. Following his prison sentence, Irving will serve 5 years on supervised release.
In his written plea agreement, Irving admitted to conspiring with Tymalk Love, Casey Eastwood, and others to distribute and to possess with intent to distribute 500 grams or more of methamphetamine from January 2018 to February 2019. He further admitted to possessing with the intent to distribute heroin.
Irving acted as a “broker” for the transfer of the drugs between bulk distributors in Arizona and Love and his associates in Oklahoma and elsewhere. Irving admitted that he and his coconspirators coordinated drug deals using cell phones, drug couriers, and electronic transfers of cash. Irving received monetary compensation for his participation in the drug conspiracy.
In December, Eastwood also pleaded guilty to drug conspiracy. Love, who led the conspiracy while incarcerated in the Oklahoma Department of Corrections, pleaded guilty in June to drug conspiracy and possession of a firearm in furtherance of a drug trafficking crime.
The Oklahoma Bureau of Narcotics and Dangerous Drugs, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Customs and Border Protection, and Tulsa County Sheriff’s Office are the investigative agencies. Assistant U.S. Attorneys Thomas E. Duncombe and Kevin C. Leitch prosecuted the case.
Maine Man Sentenced to 70 Months for Drug Trafficking, Firearm, and Fraud OffensesRead the Press Release
CONCORD - Richard Stanton, 34, of Hope, Maine was sentenced to 70 months in federal prison for drug trafficking, firearms, and fraud offenses, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on March 18, 2019, New Hampshire State Troopers stopped a vehicle with a defective taillight. The driver, Stanton, was seen reaching under the front passenger seat as they approached. Due to safety concerns, a trooper asked Stanton to exit and walk to the rear of the vehicle. Stanton initially provided false information about his identity to the officers. Officers later determined his actual identity. He was arrested after officers determined that he had a suspended driver’s license and that he was the subject of outstanding warrants in Maine
Stanton told the officers there was no one to pick up the vehicle roadside. Per their policy, the officers started to inventory the vehicle in anticipation of it being towed. Various drug paraphernalia was located during the search. Additionally, the officers observed an unlocked gun case in the rear seat containing a rifle and several rounds of ammunition. Officers then stopped the search to apply for a search warrant. The following day, pursuant to the search warrant, the vehicle was searched and officers discovered Stanton’s wallet hidden in a compartment along with over 118 grams of heroin secreted in the dashboard. As a previously-convicted felon, Stanton is prohibited from possessing firearms and ammunition.
On July 24, 2019, Stanton, an uninsured individual, checked into a medical center in Bangor, Maine. Stanton signed a consent to treatment form using another individual’s identity who was a lawful recipient of Maine Care benefits. Stanton received care and generated medical bills to be processed in the other individual’s name.
Stanton previously pleaded guilty on January 28, 20201, to possession of heroin with intent to distribute, possession of a firearm and ammunition by a prohibited person, and making a false statement in connection with health care benefits.
“Drug traffickers threaten our communities by distributing deadly substances,” said Acting U.S. Attorney Farley. “When criminals are armed, they present an even greater danger. Thanks to the hard work of law enforcement officers, this armed criminal will no longer to be able to sell drugs or commit fraud offenses.”
“Illegal drug distribution ravages the very foundations of our families and communities here in New Hampshire,” said DEA Special Agent in Charge Brian D. Boyle. “Let this sentence be a warning to those traffickers who are coming from out of state to distribute this poison that DEA and its local, state and federal partners will do everything in our power to bring you to justice.”
This matter was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Office of the Inspector General of the U.S. Department of Health and Human Services with assistance from the New Hampshire State Police. The case was prosecuted by Assistant U.S. Attorney Jennifer Cole Davis.
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MS-13 member who committed murder as part of racketeering conspiracy sentenced to 35 years in prisonRead the Press Release
COLUMBUS, Ohio – A defendant responsible for murder as charged in the federal case against local members and associates of MS-13 was sentenced in U.S. District Court today.
Juan Flores-Castro, 32, of Columbus, is the ninth defendant to be convicted and sentenced to at least 30 years in prison for committing murder on behalf of the transnational criminal organization. Specifically, Flores-Castro was sentenced to 35 years in prison.
The others include:
- Martin Neftali Aguilar-Rivera (“Momia”) – sentenced to life in prison without parole
- Jose Bonilla-Mejia (“Espia”) – sentenced to life in prison without parole
- Pedro Alfonso Osorio-Flores (“Smokey”) – sentenced to 40 years in prison
- Jose Manuel Romero-Parada (“Russo”) – sentenced to 40 years in prison
- Jose Salvador Gonzalez-Campos (“Danger”) – sentenced to 40 years in prison
- Juan Jose Jimenez-Montufar (“Chele Trece”) – sentenced to 35 years in prison
- Jose Daniel Gonzalez-Campos (“Flaco”) – sentenced to 30 years in prison
- Jose Mendez-Peraza (“Shadow”) – sentenced to 30 years in prison
The murders include: 1) the December 2006 murder of Jose Mendez, a suspected confidential informant, in Perry County; 2) the November 2008 murder of Ramon Ramos on Lockbourne Road in Columbus; 3) the mid-2015 murder of Carlos Serrano-Ramos, a suspected rival gang member, near Innis Road in Columbus; 4) the November 2015 murder of Wilson Villeda near Innis Road in Columbus; 5) the December 2016 murder of Salvador Martinez-Diaz, a suspected rival gang member, on Melroy Avenue in Columbus; 6) the 2016 murder of Jose Ovillio Ayala-Alas in Virginia; 7) the 2017 murder of 15-year-old Genesis Lizbeth Cornejo-Alvarado, who was believed to have dated a rival gang member, in Texas; and 8) the 2017 murder and dismemberment of Israel Anibal Mejia-Martinez in Indianapolis.
In total, 22 defendants have been convicted. The U.S. Attorney’s Office charged 23 individuals as members and associates of MS-13 in Columbus in a February 2018 second superseding indictment. Daniel Alexander Diaz-Romero (“Manchas”) remains a fugitive.
The defendants have been found guilty as part of a racketeering conspiracy, which includes eight murders as well as attempted murder, extortion, money laundering, drug trafficking, assault, obstruction of justice, witness intimidation, weapons offenses and immigration-related violations. Specifically, Flores-Castro was held responsible for his role in the murders of Wilson Villeda and Salvador Martinez-Diaz, as well as for selling drugs on behalf of the gang.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Rebecca Adducci, Detroit Field Office Director, U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations; Franklin County Sheriff Dallas Baldwin; and Columbus Police Chief Elaine Bryant announced the sentence imposed this morning by U.S. District Judge Edmund A. Sargus, Jr.
Deputy Criminal Chief Brian J. Martinez and Assistant United States Attorney Noah R. Litton are representing the United States in this case.
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Lubbock Man Sentenced to 30 Years for Gun, Drug Crimes After Firing at OfficersRead the Press Release
A Lubbock man who shot at police and then led them on a 115 mile-per-hour chase in Lamesa, Texas, was sentenced today to 30 years in federal prison for gun and drug crimes, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Zachary Jay Barfield, 28, pleaded guilty in April to one count of possession with intent to distribute methamphetamine and one count of discharge of firearms in furtherance of a drug trafficking crime. He was sentenced Thursday by U.S. District Judge James Wesley Hendrix.
On Nov. 4, 2020, Lamesa police officers attempted to stop a vehicle driven by Mr. Barfield, who was then a felon on parole with an active warrant for deadly conduct by discharging a firearm.
According to plea papers, Mr. Barfield admitted that as law enforcement approached his vehicle shouting commands, he fired a gun at the officers and sped away. Travelling at more than 115 miles per hour, he headed toward County Road 8201, then turned onto an unpaved road and proceeded into a pasture, evading officers.
Shortly thereafter, law enforcement located the abandoned vehicle in a ditch in Andrews County, Texas. Inside, they found a 12 gauge shotgun, ammunition, and a fanny pack containing more than 40 grams of methamphetamine. Nearby, they located a man who stated that he was seated in the backseat of the vehicle during the chase. He allegedly admitted he had been planning to purchase $20 worth of meth from the driver – Zachary Barfield – before law enforcement pulled the car over.
Law enforcement then dispatched a Department of Public Safety helicopter and a Texas Department of Criminal Justice bloodhound tracking canine to help locate Mr. Barfield. The following day, at 2:45 a.m., they located him and his girlfriend in a field roughly 8.4 miles from the abandoned car. The pair were laying on face-down on top of two Smith & Wesson guns: a 9 mm semiautomatic pistol and a .40 caliber semiautomatic pistol.
During an interview at the local sheriff’s office, Mr. Barfield waived his right to remain silent and admitted that he was a distributor of methamphetamine, and that he discharged a firearm in order to advance his distribution scheme.
The Lamesa Police Department, the Texas Department of Public Safety, the Texas Department of Criminal Justice, the Drug Enforcement Administration’s Dallas Field Division, and the Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division conducted the investigation with the assistance of the Dawson County Sheriff’s Office. Assistant U.S. Attorney Stephen Rancourt prosecuted the case.
Local Media Production and Political Consulting Firm Pleads Guilty to Wire FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that LSA Strategies LLC, a media production and political consulting firm located in Buffalo, NY, pleaded guilty before Senior U.S. District Judge William M. Skretny to wire fraud and faces a penalty up to $500,000.
Assistant U.S. Attorney Paul E. Bonanno, who is handling the case, stated that Steven M. Casey organized LSA Strategies under the laws of New York State on June 6, 2012. Between August 20 and September 19, 2012, LSA Strategies devised a scheme to defraud a candidate (Candidate 1) running for the New York State Senate 60th District.
Steven Casey provided consulting services to Candidate 1, including arranging for campaign mailings to be printed by Company 1. In doing so, Casey requested that Company 1 increase each of its invoices to Candidate 1 by a specified amount. However, Casey did not inform Candidate 1 of the increase in the amount of the invoices, rather Casey led the candidate to believe that he was working on a voluntary basis. Candidate 1 was unaware that Company 1’s invoices were being increased to provide sums of money to Casey and LSA. After Candidate 1 paid the invoices, Company 1 paid LSA the amount by which the invoices had been increased. In total, Company 1 paid LSA $8,283.59.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.
Sentencing is scheduled for December 1, 2021, at 9:00 a.m. before Judge Skretny.
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Lane County Drug Dealer Sentenced to 10 Years in Federal PrisonRead the Press Release
EUGENE, Ore.—A Lane County, Oregon man was sentenced to federal prison today for distributing large quantities of methamphetamine in Springfield, Oregon.
Delfino Angel Davila-Tamayo, 27, was sentenced to 120 months in federal prison and five years’ supervised release.
According to court documents, in April 2018, Davila-Tamayo was identified as a supplier of methamphetamine in the Springfield area. The next month, Davila-Tamayo sold an informant four pounds of methamphetamine. He was arrested the following day when he went to collect payment from the informant.
Investigators searched Davila-Tamayo’s residence and located a .45 caliber pistol, ammunition, drug packaging materials, and scales. He admitted to selling methamphetamine and carrying the pistol for protection.
After his arrest, Davila-Tamayo was granted pre-trial release and fled. After being on the run for more than a year, he was located and arrested a second time.
On October 16, 2019, a federal grand jury in Eugene returned a three-count indictment charging Davila-Tamayo with distribution of methamphetamine and possession of a firearm in furtherance of a drug trafficking crime.
On April 28, 2021, Davila-Tamayo pleaded guilty to distribution of methamphetamine. As part of his plea agreement, Davila-Tamayo agreed to voluntarily abandon the .45 caliber pistol and ammunition seized by law enforcement.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the U.S. Drug Enforcement Administration and the Springfield Police Department. It was prosecuted by Jeffrey S. Sweet, Assistant U.S. Attorney for the District of Oregon.
Kentucky Man Charged with Federal Child Pornography OffensesRead the Press Release
NASHVILLE – A criminal complaint unsealed yesterday, charged a Florence, Kentucky man with attempted production of child pornography, attempted enticement of a minor to engage in criminal sexual activity, and attempted transfer of obscene material to a minor, announced Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee.
Thomas Niemeyer, 42, was arrested by FBI agents in Kentucky yesterday and made an initial appearance before a U.S. Magistrate Judge in the Eastern District of Kentucky. He will be returned to the Middle District of Tennessee for further proceedings.
According to the complaint, an FBI agent in middle Tennessee was conducting a covert online investigation, posing as an underage female on an online dating app. Although the app requires users to be at least 18 years of age, it is widely known that many users under the age of 18 misrepresent their age.
On March 30, 2021, the FBI agent was contacted online by an individual, later identified as Neimeyer, whose profile indicated that he was 38. The FBI agent verified to Neimeyer that she was actually 13 years old and Neimeyer almost immediately turned the conversation to a sexual nature. During the course of the next few months, the FBI agent and Neimeyer continued their conversations on the Snapchat app and Niemeyer sent numerous photos and videos depicting sexual activity and made several requests to the FBI agent to send nude photos.
On June 18, 2021, Neimeyer and the FBI agent agreed to meet in middle Tennessee to engage in sexual activity, however, Neimeyer contacted the FBI agent that morning and said he had changed his mind after driving some distance toward Tennessee because he was afraid of being met by law enforcement when he arrived. Further investigation by the FBI identified Neimeyer as the suspect and confirmed the location of the IP address as Neimeyer’s home in Florence, Kentucky.
If convicted, Neimeyer faces a mandatory minimum of 15 years, and up to life in prison.
This case was investigated by the FBI. Assistant U.S. Attorney Monica Morrison is prosecuting the case.
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Jeffersonville Man Sentenced for Threatening Police OfficerRead the Press Release
LOUISVILLE, KENTUCKY – Addam Turner, age 35, of Jeffersonville, Indiana was sentenced today by United States District Judge Claria Horn Boom to 6 months incarceration to be followed by 3 years of supervised release for threatening a police officer, via Twitter, in violation of Title 18, United States Code, Section 875(c). As part of the conditions of supervised release, Turner will be subject to electronic location monitoring for 6 months. He has been in federal custody since February 11, 2021.
According to the plea agreement, Turner admitted that on or about December 28, 2020, he knowingly sent a message in interstate commerce, via the internet and Twitter, containing a true threat to injure the person of A.C., a police officer, by posting to a message containing, among other things, a red bullseye on A.C.' s forehead. Turner transmitted the threatening communication using his Twitter account "Profane812" for the purpose of issuing the threat, or with knowledge that the communication would be viewed as a threat. Turner acknowledged that a reasonable person would have understood the communication as a serious expression of an intention to do harm.
The complaint and indictment filed in the case allege that on Friday, December 25, 2020, Saint Matthews Police Department (SMPD) conducted traffic stops on North Hubbards Lane, in Saint Matthews, Kentucky. SMPD stopped vehicles in a protest caravan. During the traffic stop, Turner approached SMPD officers with an AR-pistol and a holstered handgun on his person. Turner switched the safety of the AR-pistol into the fire position and placed his right index finger inside the trigger guard and onto the trigger. SMPD officers issued verbal commands to Turner to remove his hand from this position, putting officers on the scene in fear of imminent physical danger and injury. During his arrest, Turner used physical force against arresting officers acting under official authority. Turner was arrested by SMPD for menacing (misdemeanor) and resisting arrest (misdemeanor). SMPD officer A.C. assisted with Turner’s arrest. On December 28, 2020, Turner, used the Twitter profile, "Profane812" and a username of @ProfaneRedacted, to post a photograph of A.C. with a red bullseye on the forehead of A.C. and skulls and a burning anarchy symbol in the background of the photograph. The criminal complaint filed in the case identified Turner as a member of the United Pharoah Guard, also known as the Loujahadeen, which is a Boogaloo Bois based ideology.
“We take threatening statements made to citizens of the Western District of Kentucky very seriously, stated Acting U.S. Attorney Michael A. Bennett. “Threats directed to law enforcement officers who risk their lives daily to keep our communities safe are particularly troubling and will be pursued aggressively. I appreciate the outstanding work of the FBI and the prosecutors assigned to this case. Our residents are well-served by their work.”
“There is perhaps a misperception by some that people can say anything they want over the Internet with impunity. When somebody makes threatening statements, whether directed to a law enforcement officer or any other person, those words have consequences, ” said Acting Special Agent in Edward J. Gray of the FBI’s Louisville Field Office. “Mr. Turner became a felon today because he thought he could threaten a law enforcement officer online. Mr. Turner found out how wrong he was. Others should learn from his mistake and remember that the FBI takes these matters seriously and will work with our law enforcement and prosecutive partners to actively investigate and prosecute those individuals who pose a threat to the safety of our community.”
The FBI investigated the case. Assistant U.S. Attorney Joshua Judd and DOJ Trial Attorney Dmitriy Slavin prosecuted the case.
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International Wholesale Currency Dealer Pleads Guilty to Unlawfully Operating in the United StatesRead the Press Release
Assistant U. S. Attorneys Michael A. Deshong, Daniel C. Silva, and Carl Brooker (619) 546-9290
NEWS RELEASE SUMMARY—July 29, 2021
SAN DIEGO—GPOMCT Grupo Empresarial S.A. de C.V., an international, Mexico-based wholesale currency dealer and currency exchange business, pleaded guilty in federal court today to unlawfully operating in the United States. Through its subsidiaries, GPOMCT controls more than 40 locations in Mexico that handle an average of over $1 million in U.S. currency daily.
Special Agents from Homeland Security Investigations (HSI) led the investigation into hundreds of transactions that involved GPOMCT importing large volumes of U.S. dollars into the United States between 2019 and 2021. Agents from Federal Deposit Insurance Corporation Office of Inspector General assisted HSI in its investigation.
As admitted in the plea agreement entered today before U.S. Magistrate Judge Michael S. Berg, GPOMCT imported shipments of currency from Mexico into the United States for the purposes of selling Mexican pesos to a currency exchange located in San Ysidro, California, identified only as “MSB 1” in the plea agreement. Between September 2019 and September 2020, GPOMCT imported approximately 195 shipments of currency—each worth between $90,000 and $100,000 in U.S. dollars—and delivered them to MSB 1 in San Ysidro. GPOMCT used the services of an armored car company to collect currency from MSB 1 as payment and deliver it to a third-party intermediary in Miami, Florida.
By offering a variety of services as a wholesale currency dealer, GPOMCT admitted that it operated as an unlicensed money transmitting business in the United States and agreed to criminally forfeit $1.1 million as property involved in its unlawful operations. By failing to register as a money transmitting business, GPOMCT did not file currency and transactional reports with the Department of the Treasury, as required by the Bank Secrecy Act, nor did it subject itself to inspection by the Department of Treasury for compliance with these financial laws and regulations.
Acting U.S. Attorney Randy S. Grossman said, “Financial laws and regulations are not a suggestion. They are significant tools to combat international money laundering, tax evasion, and other crimes. Financial institutions that operate in the United States of America should learn from the crimes committed by GPOMCT. This office will continue to demand the highest level of compliance from financial institutions in the Southern District of California.” Grossman praised prosecutors Michael Deshong, Daniel Silva, and Carl Brooker as well as agents from Homeland Security Investigations and Federal Deposit Insurance Corporation for their excellent work on this case.
During the course of the investigation, agents also learned that GPOMCT used the services of an armored car company—and the armored car company’s Mexican affiliate—to import U.S. dollars into the United States and deliver them to third parties around the United States on hundreds of occasions between January 2019 and February 2021. These third parties would convert the U.S. dollars to Mexican pesos and electronically transmit the funds back to GPOMCT in Mexico, thereby completing the wholesale currency cycle.
GPOMCT has since registered as a money services business, or MSB, and acknowledged that it is now expected to comply with all U.S. statutes and regulations, including anti-money laundering requirements.
Cardell T. Morant, Special Agent in Charge for Homeland Security Investigations, San Diego, stated, “HSI is committed to protecting the integrity of the U.S. financial system by holding Money Service Businesses accountable for the registration and reporting requirements necessary to ensure transparency. Companies or individuals that import, transport, or transfer large amounts of currency without complying with reporting requirements create opportunities for criminal organizations to introduce their profits into the financial system without scrutiny. This guilty plea should send a strong signal to MSBs to remain vigilant in their anti-money laundering duties.”
“This guilty plea holds GPOMCT responsible for failing to comply with requirements established under anti-money laundering laws,” said Special Agent in Charge Jeffrey D. Pittano of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG). “The FDIC OIG is committed to working with our law enforcement partners to investigate those who fail to adhere to laws and regulations that are designed to detect and prevent financial crimes.”
Sentencing is scheduled to occur on October 15, 2021 before U.S. District Judge Janis L. Sammartino.
DEFENDANTS Case Number 21cr2120-JLS
GPOMCT Grupo Empresarial S.A. de C.V.
SUMMARY OF CHARGES
Operating an Unlicensed Money Transmitting Business—Title 18, U.S.C., Section 1960
Criminal Forfeiture—Title 18, U.S.C., Section 982
Maximum penalty: $500,000 fine or twice the gross gain or loss from the offense, whichever is greater; criminal forfeiture
AGENCY
Homeland Security Investigations
Federal Deposit Insurance Corporation
Inmate Serving Lengthy Sentence for Third Degree Murder Gets Additional Time for Pandemic Unemployment Assistance FraudRead the Press Release
PITTSBURGH, PA- A former resident of Philadelphia, Pennsylvania, was sentenced in connection with a conspiracy to commit mail fraud, Acting United States Attorney Stephen R. Kaufman announced today.
Gary Clanton, age 41, had pled guilty to one count of Conspiracy before Judge Nora Barry Fischer on May 12, 2021.
In connection with the sentencing, the court was advised that in order to combat the devastating impact of the ongoing COVID-19 pandemic on the United States, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed into law. The CARES Act created the Pandemic Unemployment Assistance (PUA) Program, which provided unemployment benefits to individuals not eligible for regular unemployment compensation or extended unemployment benefits. Individuals are eligible for PUA if they were unemployed due to the pandemic and could accept a job if one were offered.
At the time of the conspiracy, Clanton was serving a 20-to-40 year sentence for third degree murder, to be followed by a 5-to-10 year sentence for conspiracy to commit murder, at State Correctional Institution (SCI) Fayette. During his incarceration, the defendant conspired to commit mail fraud in order to obtain PUA benefits. Due to his incarceration, the defendant was unemployed and unemployable for reasons unrelated to the pandemic. Nevertheless, the defendant’s jail call recordings prove that he directed another to falsify material facts in a PUA application filed in the defendant’s name. The total amount paid on the claim was $12,870.00, which the United States Postal Service transported in the mail. Following the application’s filing, Clanton informed someone during a recorded jail call, “I’m in jail already, so for me, it don’t matter . . . I got my own account, I got my own so it’s not like, so in my situation I’m in prison already, so what ya’ll gonna do to me?”
On July 29, 2021, Judge Fischer sentenced Clanton to 10 months imprisonment to be served consecutive to his undischarged state sentences, a $100 special assessment, and restitution in the amount of $12,870.00.
Assistant United States Attorney Brendan J. McKenna prosecuted this case on behalf of the government.
The United States Secret Service and United States Department of Labor conducted the investigation that led to the prosecution of Gary Clanton.
IRS Obtains Court Order Authorizing Summonses for Records Relating to U.S. Taxpayers Who Used Panamanian Offshore Service Providers to Hide Assets and Evade TaxesRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, David A. Hubbert, Acting Assistant Attorney General for the Justice Department’s Tax Division, and Charles P. Rettig, Commissioner of the Internal Revenue Service (“IRS”), announced that U.S. District Judge Gregory H. Woods entered an order yesterday authorizing the IRS to issue summonses requiring multiple couriers and financial institutions to produce information about U.S. taxpayers who may have used the services of Panama Offshore Legal Services (“POLS”) and its associates (together, the “POLS Group”) to evade federal income taxes. Specifically, the IRS summonses seek to trace courier deliveries and electronic fund transfers between the POLS Group and its clients, in order to identify the POLS Group’s U.S. taxpayer clients who have used the POLS Group’s services to create or control foreign assets and entities to avoid compliance with their U.S. tax obligations.
Manhattan U.S. Attorney Audrey Strauss said: “This action underscores our Office’s commitment to hold accountable those who use offshore service providers to avoid U.S. taxes. In issuing these John Doe summonses, we continue our joint efforts with the IRS to investigate tax evaders who use foreign financial accounts and sham foreign entities to hide their assets.”
Acting Assistant Attorney General David A. Hubbert said: “The Department of Justice, working alongside the IRS, is dedicated to unearthing the use of foreign bank accounts to evade U.S. taxes. We will use the many tools available to us, including John Doe summonses like the ones authorized today, to ensure that taxpayers are fully meeting their responsibilities.”
IRS Commissioner Charles P. Rettig said: “These court-ordered summonses should put on notice every individual and business seeking to avoid paying their fair share of taxes by hiding assets in offshore accounts and companies. These records will empower the IRS and the Department of Justice to find those attempting to skirt their tax obligations and ensure their compliance with the U.S. tax laws.”
Federal tax law requires U.S. taxpayers to pay taxes on all income earned worldwide. U.S. taxpayers must also disclose certain foreign financial accounts and assets. According to the allegations set forth in the documents filed in support of the petition to authorize the John Doe summonses, and other information in the public record:
POLS is a Panamanian law firm that advertises services, including to U.S.-based clients, to assist in concealing ownership of offshore entities and accounts. Among other services, POLS and its associates offer assistance with forming corporations and foundations and creating offshore financial accounts, for purposes of asset protection. POLS highlights secrecy as a key advantage of its entity formation services, promising its clients “100% anonymity, privacy and confidentiality.” Other members of the POLS Group similarly advertise that they can assist clients with concealing assets and avoiding taxes. For example, one POLS Group member assures clients that “a carefully designed corporate strategy allows you to care for your loved ones free from probate, inheritance taxes, and other legal and tax problems.” The IRS has learned of at least one identified U.S. taxpayer who used POLS’s services to create an unreported offshore entity and account in Panama, through the IRS’s Offshore Voluntary Disclosure Program (“OVDP”). The OVDP allows U.S. taxpayers to voluntarily disclose foreign accounts or entities used to evade tax in exchange for fixed penalties.
In this action, the Court granted the IRS permission to serve what are known as “John Doe” summonses on 10 entities: Federal Express Corporation; FedEx Ground Package System, Inc.; DHL Express; United Parcel Service, Inc.; the Federal Reserve Bank of New York; The Clearing House Payments Company LLC; HSBC Bank USA, N.A.; Citibank, N.A.; Wells Fargo Bank, N.A.; and Bank of America, N.A. There is no allegation in this action that the summons recipients have engaged in any wrongdoing. Rather, the IRS uses John Doe summonses to obtain information about possible violations of internal revenue laws by individuals whose identities are unknown. The John Doe summonses direct these couriers and financial entities to produce records that will enable the IRS to identify U.S. taxpayers who have used the POLS Group’s services, along with other documents relating to the POLS Group’s business.
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This case is being handled by the Office’s Tax and Bankruptcy Unit. Assistant U.S. Attorney Talia Kraemer is in charge of the case.
Gregg County Man Sentenced for Federal Drug Trafficking ViolationsRead the Press Release
TYLER, Texas – A Kilgore man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Christopher Marcell Mumphrey, 43, pleaded guilty on March 20, 2021, to possession with intent to distribute methamphetamine and was sentenced to 100 months in federal prison today by U.S. District Judge Jeremy D. Kernodle.
“So long as there are those who have committed themselves to infesting their communities with illegal drugs, the U.S. Attorney’s Office, with our state and local partners, are committed to interdicting those efforts,” said Acting U.S. Attorney Nicholas J. Ganjei. “We will continue to go after meth dealers in East Texas.”
According to information presented in court, on Feb. 5, 2020, Mumphrey was a passenger in a vehicle which was used to transport and distribute methamphetamine in Smith County, Texas. Mumphrey exited the vehicle and signaled to the buyer to approach the vehicle to complete the transaction. Mumphrey was indicted by a federal grand jury on Nov. 6, 2000 and charged with federal drug trafficking violations.
This case was investigated by the Federal Bureau of Investigation, the Smith County Sheriff’s Office and the Texas Department of Public Safety - CID and prosecuted by Assistant U.S. Attorney Alan Jackson.
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Gilmer County man sentenced to nearly 18 years for fentanyl chargeRead the Press Release
ELKINS, WEST VIRGINIA – Joshua Lee Rutherford, of Linn, West Virginia, was sentenced today to 215 months of incarceration for his role in a methamphetamine and fentanyl distribution operation, Acting U.S. Attorney Randolph J. Bernard announced.
Rutherford, 32, pled guilty in January 2021 to one count of “Possession with Intent to Distribute at Least Forty Grams of Fentanyl—Aiding and Abetting.” Rutherford admitted to having more than 40 grams of fentanyl, enough to kill more than 13,000 people, in Hardy County in January 2020.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Potomac Highlands Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated. The task force is comprised of the DEA, the FBI, the West Virginia State Police, the Mineral County Sheriff's Office, the Hampshire County Sheriff's Office, the Hardy County Sheriff's Office, the Grant County Sheriff's Office, and the Keyser Police Department.
U.S. District Judge Thomas S. Kleeh presided.
Find the related press release here: https://www.justice.gov/usao-ndwv/pr/gilmer-and-grant-county-residents-indicted-methamphetamine-and-fentanyl-charges
Gang Member Sentenced to 21+ Years for Drug CrimeRead the Press Release
A gang member who started a riot at the Lubbock County Jail last month was sentenced today to more than 21 years in federal prison for a drug crime, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Clarence Willard, Jr., 28, pleaded guilty in March to possession with intent to distribute crack cocaine. He was sentenced Thursday to 262 months in prison by U.S. District Judge James Wesley Hendrix.
According to plea papers, Mr. Willard – aka “C-Will” – admitted that when officers attempted to pull his car over on Sept. 2, 2020, he ditched the vehicle and fled on foot with a clear plastic baggie of cocaine in his hand. An officer deployed his taser and Mr. Willard fell to the ground, dropping the baggie, which contained approximately 48 grams of crack cocaine.
Law enforcement testified today that during their undercover investigation, they discovered that Mr. Willard ran a trap house in East Lubbock, selling crack cocaine for roughly $100 per gram. Officers said they found numerous videos of Mr. Willard flaunting his drug trafficking on his phone, including a video of him displaying what he stated was $200,000 cash. Mr. Willard also recorded freestyle rap videos of himself openly discussing crack cocaine trafficking.
At his sentencing hearing, prosecutors introduced evidence showing that Mr. Willard, a member of the Crips gang, started a riot in the Lubbock county jail while awaiting sentencing.
A gang intelligence Sargent with the Lubbock County Sheriff’s Office testified that other Crip members stated that they participated in the riot because Willard was the “Mayor of Eastside,” and effectively ran crack cocaine distribution in East Lubbock.
Prosecutors played surveillance video of the riot, which showed Willard starting the melee and then viciously stomping and kicking and rival gang members in the jail pod. Officers eventually deployed pepper spray to end the riot, and the placed the entire facility of approximately 1200 inmates on lockdown as a result of Willard’s conduct.
Mr. Willard’s main co-defendant, Kevaundre Boyd, was sentenced on May 20 to 210 months in federal prison for possession with intent to distribute cocaine.
The Drug Enforcement Administration’s Dallas Field Division conducted the investigation, with significant assistance from the Lubbock Police Department, the Lubbock County Sheriff’s Office, the Texas Department of Public Safety, Homeland Security Investigations, and the Texas Anti-Gang Unit. Assistant U.S. Attorney Stephen Rancourt prosecuted the case.
Four Executives and Company Charged with Price Fixing in Ongoing Investigation into Broiler Chicken IndustryRead the Press Release
Note: The charges against Defendants Justin Gay and Wesley Scott Tucker were dismissed on Aug. 11, 2022. The charges against Defendants Jason McGuire and Timothy Stiller were dismissed on Oct. 17, 2022.
A federal grand jury in Denver, Colorado, returned an indictment yesterday charging Koch Foods, headquartered in Park Ridge, Illinois, for participating in a nationwide conspiracy to fix prices and rig bids for broiler chicken products. Separately, a federal grand jury in Denver returned an indictment charging four executives for their roles in the same conspiracy.
According to court documents, the four charged former Pilgrim’s Pride executives are Jason McGuire, a former Executive Vice President of Sales for Prepared Foods; Timothy Stiller, a former General Manager of Fresh Food Services and Small Bird Debone; Wesley “Scott” Tucker, a former National Accounts sales executive; and Justin Gay, a former Director of Fresh Foodservice Sales.
The indictments allege that the defendants and co-conspirators conspired to suppress and eliminate competition for sales of broiler chicken products, which are chickens raised for human consumption and sold to grocers and restaurants. Koch’s senior vice president, William Kantola, is among ten individuals indicted in October 2020 for their roles in the conspiracy. On May 19, a grand jury returned an indictment against Claxton Poultry for its role in the same conspiracy, which today’s indictment supersedes. Pilgrim’s Pride, a major broiler chicken producer based in Greeley, Colorado, pleaded guilty and was sentenced in February 2021 to pay a criminal fine of $107 million for its role in the conspiracy. The long-running conspiracy began as early as 2012 and lasted until at least 2019.
“As today’s charges show, the division remains committed to holding both individuals and companies accountable when they choose profits over following the law,” said Acting Assistant Attorney General Richard A. Powers of the Justice Department’s Antitrust Division. “Our investigation into criminal price fixing of broiler chickens continues, and we will not stop until we ensure that wrongdoers are held accountable and competition is restored to this critical industry.”
“Price fixing is not a victimless crime, and the illegal actions taken by these companies and individuals in the broiler chicken industry have had a direct and negative impact on the American consumer,” said Assistant Director in Charge Steven M. D’Antuono of the FBI Washington Field Office. “The FBI is committed to pursuing those who violate antitrust laws, harming the nation’s free and competitive marketplace all for their own monetary gain.”
“Price fixing, bid rigging and related activities harm consumers and our system of free market competition,” said Scott Kieffer, Assistant Inspector General for Investigations at the U.S. Department of Commerce, Office of Inspector General. “We remain committed to working with the Department of Justice and our law enforcement partners to aggressively investigate and prosecute corrupt behavior in order to protect the integrity of our nation’s commerce.”
Koch Foods, McGuire, Stiller, Tucker and Gay are each charged with a violation of the Sherman Antitrust Act. Defendants McGuire, Stiller, Tucker and Gay will make their initial court appearances on Aug. 11 before U.S. Magistrate Judge Crews of the U.S. District Court for Colorado. Koch Foods’ initial appearance is also scheduled on Aug. 11 before U.S. Magistrate Judge Crews for the U.S. District Court for Colorado The Sherman Act carries a statutory maximum penalty of 10 years in prison and a $1 million fine for individuals, and a $100 million fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by victims, if either of those amounts is greater than the statutory maximum fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the broiler chicken industry, which is being conducted by the Antitrust Division with the assistance of the Department of Commerce Inspector General’s Office, the FBI’s Washington Field Office and the U.S. Department of Agriculture Inspector General’s Office. The case is being prosecuted by the Antitrust Division.
Anyone with information on price fixing, bid rigging or other anticompetitive conduct related to the broiler chicken industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Qualcomm Director Admits to Tax Evasion Scheme with Former Chabad of Poway RabbiRead the Press Release
Assistant U. S. Attorneys Michelle L. Wasserman (619) 546-8431 and Valerie Chu (619) 546-6750
NEWS RELEASE SUMMARY – July 29, 2021
SAN DIEGO – Jason Ellis of Poway pleaded guilty in federal court today to filing a false tax return as part of a years’ long tax-evasion scheme with former Chabad of Poway Rabbi Yisroel Goldstein.
Until around 2018, Rabbi Goldstein was the director and head rabbi at Chabad of Poway, a tax-exempt religious organization. Goldstein also operated several non-profit entities affiliated with the Chabad, including the Friendship Circle of San Diego. Beginning in 2008, at Rabbi Goldstein’s request, Ellis, who was at the time an employee of Qualcomm, made a $1,000 donation to Friendship Circle. Ellis then requested that Qualcomm match that donation through the company’s corporate matching program. Unbeknownst to Qualcomm, Goldstein met with Ellis in person and returned the entirety of his $1,000 to him in cash, and kept the falsely matched Qualcomm donation. Ellis repeated this scheme in the same way every year through 2017.
In 2016, Ellis was promoted to the position of Director at Qualcomm, which meant that the company would match up to $5,000 in charitable donations. In 2016 and 2017, Ellis met with Goldstein and gave him a check for $5,000 for Friendship Circle and secured a $5,000 matching donation from Qualcomm. In each of those years Goldstein gave Ellis $5,000 back in cash. Between 2008 and 2017, Ellis made a total of 10 fraudulent charitable donations to Friendship Circle, each of which was matched by Qualcomm. Qualcomm matched a total of $18,000 in fraudulent donations by Ellis.
According to Ellis’ plea agreement, in 2018, Goldstein sent a message to Ellis through another individual reminding Ellis to make his donation. Ellis thought that it was strange that Goldstein was communicating through an intermediary, and became suspicious that something was wrong. That year Ellis made his annual $5,000 donation to Friendship Circle, but did not get any cash back from Goldstein. However, in 2019, a year in which Ellis did not make a donation to Friendship Circle, Ellis received in the mail an unexpected donation receipt for $5,000 from Friendship Circle, signed by the director of the organization, thanking Ellis for his tax-deductible donation. Ellis used this fraudulent donation receipt to falsely claim a $5,000 tax deductible donation on his 2019 tax returns, even though he knew he was not entitled to the deduction because he had not donated $5,000 to Friendship Circle in 2019.
Between 2015-2019 Ellis also falsely claimed his children’s preschool tuition at the Chabad as a charitable deduction on his taxes. During that time period Ellis wrote eight checks to Chabad of Poway, totaling $55,600 for his children’s preschool tuition. Ellis then falsely reported to the IRS that he had made tax deductible donations to charity despite knowing that these were in fact tuition payments and therefore not tax-deductible donations.
Through these various schemes Ellis evaded over $27,000 in taxes.
In July 2020, Rabbi Goldstein pleaded guilty “Mr. Ellis victimized not only honest U.S. taxpayers, but also a local corporation trying to improve our community through a charitable corporate-matching program,” said Acting U.S. Attorney Randy S. Grossman. “Giving phony donations as a way to avoid paying taxes is not only unscrupulous and deceitful – it’s a crime. Tax cheats who game the system will be held to account for their conduct.” to fraud charges, admitting that he participated in a complex, years-long, multi-million-dollar tax-evasion scheme and other financial deceptions involving theft of public money. Rabbi Goldstein’s plea agreement outlined the tax evasion scheme with Ellis.
Ellis is the ninth individual to plead guilty to crimes discovered in this investigation. Two additional individuals have agreed to deferred prosecution agreements as a result of the investigation. Rabbi Goldstein has agreed to cooperate with the ongoing investigation. He is scheduled to be sentenced by U.S. District Judge Cynthia Bashant on October 26, 2021.
Grossman praised prosecutors Michelle Wasserman and Valerie Chu and FBI and IRS agents for their excellent work on this case.
“In conspiring with Rabbi Goldstein in multiple tax evasion schemes, Jason Ellis showed a blatant disregard for our laws; laws designed to promote charitable giving and provide incentives for hard working Americans,” said FBI Special Agent in Charge Suzanne Turner. “What Jason Ellis chose to do in taking advantage of his own employer and the tax system worked to degrade our collective trust in these laws. The FBI is committed to finding and bringing to justice those who would abuse a system which encourages giving to non-profit organizations designed to help others.”
“For over ten years, Mr. Ellis participated in an illegal scheme that not only defrauded his employer but also stole tens of thousands of dollars from the United States,” said Ryan L. Korner, Special Agent in Charge of IRS Criminal Investigation’s Los Angeles Field Office. “Mr. Ellis’s lies and exploitation of charitable giving programs offered by both Qualcomm and the IRS is made more egregious by the length of his involvement. IRS Criminal Investigation, in partnership with its law enforcement partners, is resolute in bringing these thieves to justice.”
Jason Ellis is next scheduled to appear at a sentencing hearing on October 25, 2021 at 9:00 a.m. before Judge Cynthia Ann Bashant.
SUMMARY OF CHARGES Case Number 21-CR-2200-BAS
Jason Ellis Age: 42 Poway, CA
Filing False Tax Return, in violation of Title 26, U.S.C. §7206(1)
Maximum Penalty: Three years in prison
PREVIOUSLY CHARGED DEFENDANTS AND SUMMARY OF CHARGES
Yisroel Goldstein, Case Number 20CR1916-BAS Age: 58 Poway
Conspiracy to Defraud the United States and Commit Wire Fraud, in violation of Title 18, USC 371
Maximum Penalty: Five years in prison
Alexander Avergoon, Case Number 19CR2955-BAS Age: 44 San Diego
Wire Fraud, in violation of Title 18, USC 1343
Maximum Penalty: Twenty years in prison
Aggravated Identity Theft, in violation of Title 18, USC 1028A
Maximum Penalty: Two years minimum consecutive term in prison
Money Laundering, in violation of Title 18, USC 1956(a)(1)(B)(i)
Maximum Penalty: Twenty years in prison
Bruce Baker, Case Number 20CR1912-BAS Age: 74 La Jolla
Conspiracy to Defraud the United States and file false tax returns, in violation of Title 18, USC 371
Maximum Penalty: Five years in prison
Bijan Moossazadeh, Case Number 20CR1893-BAS Age: 63 San Diego
Filing a False Tax Return, in violation of Title 26, USC 7206(1)
Maximum Penalty: Three years in prison
Yousef Shemirani, Case Number 20CR1895-BAS Age: 74 Poway
Filing a False Tax Return, in violation of Title 26, USC 7206(1)
Maximum Penalty: Three years in prison
Boris Shkoller, Case Number 20CR1913-BAS Age: 83 Del Mar
Filing a False Tax Return, in violation of Title 26, USC 7206(1)
Maximum Penalty: Three years in prison
Mendel Goldstein, Case Number 20CR2772-BAS Age: 63 Brooklyn, NY
Conspiracy to Defraud the United States and Commit Wire Fraud, in violation of Title 18, USC 371
Maximum Penalty: Five years in prison
Stuart Weinstock, Case Number 21CR0042-BAS Age: 64 Escondido, CA
Filing False Tax Return, in violation of Title 26, U.S.C. §7206(1)
Maximum Penalty: Three years in prison
Rotem Cooper, Case Number 20CR3968-BAS Age: 54 San Diego
Deferred Prosecution Agreement
Conspiracy to Commit Wire Fraud, in violation of Title 18, USC 371
Igor Shtilkind, Case Number 20CR3955-BAS Age: 55 San Diego
Deferred Prosecution Agreement
Conspiracy to Commit Wire Fraud, in violation of Title 18, USC 371
INVESTIGATING AGENCIES
Federal Bureau of Investigation
Internal Revenue Service
Former Nikola Corporation CEO Trevor Milton Charged in Securities Fraud SchemeRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, and Phillip R. Bartlett, Inspector-in-Charge of the New York Division of the United States Postal Inspection Service (“USPIS”), announced today the unsealing of a criminal indictment charging TREVOR MILTON with securities and wire fraud in connection with his scheme to defraud and mislead investors about the development of products and technology by the company he founded, Nikola Corporation (“Nikola”).
Manhattan U.S. Attorney Audrey Strauss said: “As alleged, Trevor Milton brazenly and repeatedly used social media, and appearances and interviews on television, podcasts, and in print, to make false and misleading claims about the status of Nikola’s trucks and technology. But today’s criminal charges against Milton are where the rubber meets the road, and he now will be held accountable for his allegedly false and misleading statements to investors.”
Inspector-in-Charge Phillip R. Bartlett said: “This defendant allegedly concealed the progress and success of Nikola’s technology, when he lied to investors and lured them into believing that they had invested at the ground floor of a company that had already developed viable Nikola One and Badger prototypes that were ready to be produced. The one thing fraudsters have in common – they’re liars, cheaters and thieves.”
MILTON surrendered this morning and will be presented later today before United States Magistrate Judge Sarah Netburn. The case is assigned to U.S. District Judge Edgardo Ramos.
According to the allegations in the Indictment unsealed today in Manhattan federal court:[1]
Overview
From at least in or about November 2019 up through and including at least in or about September 2020, TREVOR MILTON engaged in a scheme to defraud investors by inducing them to purchase shares of Nikola Corporation (“Nikola”), the electric- and hydrogen-powered vehicle and energy company that MILTON founded, through false and misleading statements regarding Nikola’s product and technology development. MILTON’s scheme targeted individual, non-professional investors – so-called “retail investors” – by making false and misleading statements directly to the investing public through social media and television, print, and podcast interviews.
MILTON made these false and misleading statements regarding Nikola’s products and capabilities to induce retail investors to purchase Nikola stock. Among the retail investors who ultimately invested in Nikola were investors who had no prior experience in the stock market and had begun trading during the COVID-19 pandemic to replace or supplement lost income or to occupy their time while in lockdown, and some of the retail investors that MILTON’s fraudulent scheme targeted suffered tens and even hundreds of thousands of dollars in losses, including, in certain cases, the loss of their retirement savings or funds that they had borrowed to invest in Nikola. Moreover, MILTON took advantage of the fact that Nikola went public by merging with a Special Purpose Acquisition Company or “SPAC,” rather than through a traditional IPO, by making many of his false and misleading claims during a period where he would have not been allowed to make public statements under rules that govern IPOs.
MILTON made false claims regarding nearly all aspects of Nikola’s business, including: (a) false and misleading statements that the company had early success in creating a “fully functioning” semi-truck prototype known as the “Nikola One,” when MILTON knew the prototype was inoperable; (b) false and misleading statements that Nikola had engineered and built an electric- and hydrogen-powered pickup truck known as “the Badger” from the “ground up” using Nikola’s parts and technology, when MILTON knew that was not true; (c) false and misleading statements that Nikola was producing hydrogen and was doing so at a reduced cost, when MILTON knew that in fact no hydrogen was being produced at all by Nikola, at any cost; (d) false and misleading statements that Nikola had developed batteries and other important components in-house, when MILTON knew that Nikola was acquiring those parts from third parties; and (e) false and misleading claims that reservations made for the future delivery of Nikola’s semi-trucks were binding orders representing billions in revenue, when the vast majority of those orders could be cancelled at any time or were for a truck Nikola had no intent to produce in the near-term.
Nikola One
Throughout in or about 2020, MILTON promoted a false and exaggerated narrative that Nikola was a first mover in the zero-emissions-trucking business. Specifically, MILTON emphasized that Nikola had defied expectations as a young, disruptive company when it managed to build its prototype Nikola One, which Nikola unveiled on or about December 1, 2016, at a large event that was filmed and broadcast on the internet. During that event and later, MILTON claimed that the prototype Nikola One was a fully functioning truck, and emphasized that early purported success as a defining event for Nikola. For example, at the unveiling event for the Nikola One, MILTON claimed the Nikola One “fully functions and works, which is really incredible.”
In fact, the Nikola One prototype was not completed, let alone tested and validated, by the time of the unveiling event. Rather, the prototype was wholly missing significant parts, including gears and motors, and the control system (i.e., the system that communicates the driver’s directions to the vehicle) was incomplete. The infotainment system in the cab was also incomplete. Instead, for the purpose of the unveiling event, tablet computers or other computer screens were mounted into the areas where the screens for the infotainment would be, and the screens were set to display images created to have the appearance of infotainment screens, with speedometers, maps, and other information displayed.
Later, in or about January 2018, and despite the fact that the Nikola One prototype was never completed or operational, MILTON had Nikola publish on Twitter and also published on his own Twitter account a video in which the Nikola One appeared to be driving on its own power down a road with no incline. In fact, to film these clips, the Nikola One was towed to the top of hill, at which point the “driver” released the brakes, and the truck rolled down the hill until being brought to a stop in front of the stop sign.
The Badger
From in or about February 2020 up through and including at least in or about September 2020, MILTON promoted a new electric pickup truck called the Badger through false and misleading claims about the Badger’s engineering and development. In particular, MILTON repeatedly and falsely stated that Nikola engineered and built the Badger from the “ground up” as a “clean sheet” vehicle using Nikola’s in-house components and intellectual property, that the company had been working on the program for years and had tapped into billions of dollars in Nikola engineering, that the building of prototype vehicles was complete and they were “real” trucks and “fully functioning vehicle inside and outside,” and that an original equipment manufacturer partner (the “OEM Partner”) would mass-produce the vehicle using Nikola’s prototype design and engineering.
In fact, the production of Badger prototypes was outsourced, at MILTON’s direction, to third parties, and the components were not being built from the ground up. Rather, Nikola purchased several Ford F-150 pickup trucks – a highly popular model to which MILTON had claimed his Badger would compare favorably – to use as “donor” or “surrogate” vehicles, and used the vehicles’ chasses and bodies as the base for constructing the Badger prototypes. At MILTON’s direction and with his approval, engineers working on the Badger prototypes took steps to hide from the public that Ford donor vehicles were used to produce the prototypes. And the two prototype Badgers that ultimately were built were little more than show cars and not real consumer vehicles. For example, the Badger prototypes could not be driven on roads because some of the parts of the body were carbon fiber composite and because they had not undergone safety testing. The Badger prototypes also lacked certain parts, such as airbags and an operable HVAC. Similarly, many of the lights in the interior of the Badger prototypes were not operable and were merely backlit.
Moreover, despite MILTON’s claims that Nikola’s OEM Partner would manufacture the Badgers that Nikola had designed and engineered, and that the vehicles would be “70 percent Nikola 30 percent [the OEM Partner],” the OEM Partner planned to build the Badger based on one of its own electric vehicle platforms. In fact, the OEM Partner planned to use no Nikola technology or engineering, except for the general aesthetic and potentially the infotainment system. No one at the OEM Partner ever saw the Badger prototypes that Nikola had been working on and they were not part of the OEM Partner’s engineering or development plans.
Hydrogen Production
MILTON also made numerous false and misleading claims regarding Nikola’s hydrogen business. Specifically, and among other things, MILTON made false and misleading claims regarding the status of Nikola’s production of hydrogen, the current cost of producing hydrogen, the cost of electricity to produce hydrogen, Nikola’s ability to produce hydrogen using clean energy, and the status of permits related to hydrogen production.
For example, in or about March 12, 2020, MILTON stated, “Up until Nikola came in the market, hydrogen was around $16 a kilogram, U.S. dollars. Now Nikola is producing it well below $4 a kilogram.” In fact, Nikola has never produced any hydrogen at any price, nor at the time could it have produced hydrogen for below $4 per kilogram. To the contrary, Nikola has never obtained a permit to produce hydrogen or installed the equipment necessary to produce hydrogen. At the time that MILTON was claiming that Nikola was producing hydrogen for less than $4 per kilogram, it was in fact purchasing hydrogen from a supplier for $16 per kilogram.
As another example, in a July 17, 2020, podcast, MILTON stated, among other things, that when Nikola first started, hydrogen production stations “were going to be 50 to 60 million,” but now Nikola is “down to, you know, 14, 14 million bucks” due to the “standardization of a hydrogen station.” In truth and in fact, Nikola had not built a single hydrogen production station, much less “standardized” hydrogen production stations. At the time, due to the high cost of electricity in California, Nikola was seriously considering moving away from its plan to produce hydrogen on-site at all of its fueling stations, and instead was considering producing hydrogen at a central location through liquefaction. Milton was well aware of the issues with Nikola’s hydrogen station plan, but directed that Nikola employees “[k]eep the liquefaction discussions quiet from the market.”
In House Technology
MILTON has repeatedly claimed that Nikola has intellectual property rights over important components of its semi-truck line. While MILTON has stated that Nikola outsources many parts of the trucks, like its tires or windshield, MILTON has also repeatedly stated that Nikola makes the most important parts, including batteries and the powertrain, of the semi-trucks “in house.” For example, in or about June 2020, MILTON tweeted, “We do our own batteries at Nikola and have since day 1,” and “All the technology, software, controls, E axle, inverters etc. we do internally.”
In fact, although Nikola has partnered with various companies to try to develop proprietary battery technology, these efforts were not successful, and Nikola has not successfully developed technology internally, and the batteries it has planned to use in its semi-trucks were developed and manufactured by third parties. Similarly, Nikola has not produced an inverter in house and the inverters it planned to use in its semi-trucks were developed and manufactured by third parties.
Reservations
MILTON has also repeatedly misstated the nature of Nikola’s reservations to suggest that reservations made for its semi-trucks are firm and binding. For example, in or about July 2020, MILTON claimed that Nikola had “billions and billions of dollars with the contracts” and that these reservations were not “just like, a non-committal thing,” but instead were “like, sign on the dotted line, billions and billions and billions and billions of dollars in orders.”
In fact, although Nikola did have 14,000 reservations for its sleeper semi-truck, with the exception of a reservation for approximately 800 semi-trucks, which is binding provided that Nikola meets certain conditions, these reservations were non-binding and cancellable at any time for any reason.
Milton’s False and Misleading Statements Induced Retail Investors to Purchase Nikola Stock
After MILTON made the false and misleading statements regarding Nikola’s products and capabilities described above, tens of thousands of retail investors purchased Nikola’s stock between in or around March and September 2020. During this same period, certain institutional investors who had access to more complete information regarding Nikola’s products and technology, including some who received Nikola shares as part of the SPAC transaction, were able to sell their stock for a significant profit.
The value of Nikola’s stock plummeted after the fact that certain of MILTON’s statements had been false and misleading was disclosed to the market in or around September 2020. As a result, many Nikola stockholders, including the retail investors who were the target of MILTON’s scheme, suffered significant financial losses, in some cases totaling in the tens or hundreds of thousands of dollars and compromising their financial security or retirement savings.
* * *
MILTON, 39, of Oakley, Utah, is charged with two counts of securities fraud and one count of wire fraud. The securities fraud counts carry maximum penalties of 20 and 25 years in prison, respectively. The wire fraud count carries a maximum penalty of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the outstanding work of the USPIS, which jointly conducted this investigation with special agents from the U.S. Attorney’s Office. Ms. Strauss further thanked the U.S. Securities and Exchange Commission, which today filed a parallel civil action.
The prosecution of this case is being overseen by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Jordan Estes, Matthew Podolsky, Nicolas Roos are in charge of the case.
If you believe you are a victim of Trevor Milton or have relevant information, please email: [email protected].
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Former New York City Council Member Sentenced to Prison for Tax FraudRead the Press Release
Audrey Strauss, United States Attorney for the Southern District of New York, announced that CHAIM DEUTSCH, a former New York City Council Member, was sentenced today in Manhattan federal court to three months in prison for filing a false tax return in connection with outside income he received from his real estate management corporation. DEUTSCH previously pled guilty before United States Magistrate Judge James L. Cott, who imposed today’s sentence.
U.S. Attorney Audrey Strauss said: “Chaim Deutsch, a former New York City Council Member, violated his oath of office and the law when he defrauded the IRS in connection with income from his real estate business. At the same time he was serving as an elected official and community leader, Deutsch concealed his true business income to avoid paying his fair share of taxes. Appropriately, Deutsch has been sentenced to prison for his criminal conduct.”
According to the allegations contained in the Information to which DEUTSCH pled guilty, other court filings, statements made during public court proceedings, and publicly available information:
From in or about January 2014 through April 2021, DEUTSCH served as the New York City Council Member for the 48th District, which includes portions of Brooklyn. DEUTSCH was also the sole owner of Chasa Management, Inc., a real estate management business, and he received more than $120,000 annually in outside income from that business, until the end of 2017 when a change in the law prohibited council members from maintaining outside employment. On or about April 27, 2021, subsequent to his plea in the instant case, DEUTSCH was determined to have vacated his elected office as a result of violating his oath of office by defrauding the federal government in connection with the instant tax offense.
During the tax years 2013 through 2015, DEUTSCH filed false individual and corporate tax returns that decreased his tax liability by claiming false and fictitious business deductions. In particular, DEUTSCH falsely deducted personal expenses as business expenses, including rental payments for an apartment that he maintained in the 48th District in order to obtain residency for his council position; utility, water, repair, maintenance, automobile, and phone expenses; as well as routine living expenses such as groceries and clothing. In addition, DEUTSCH further decreased his tax liability by filing fraudulent schedules to his personal income tax forms that declared fictitious business expenses, including for additional purported rent, vehicles, phones, and utility expenses.
As a result of the false deduction schemes, DEUTSCH received federal tax refunds in each of the relevant tax years. Specifically, in tax year 2013, DEUTSCH’s false filings generated a federal tax refund of $1,937; in tax year 2014, DEUTSCH’s false filings generated a federal tax refund of $262; and in tax year 2015, DEUTSCH’s false filings generated a federal tax refund of $7,511.
In preparing his personal tax returns and the books and tax returns of Chasa Management, DEUTSCH employed a tax preparer and accounting firm based in Brooklyn, and DEUTSCH would direct the firm to classify or reclassify expenses as business-related to decrease his tax liability. Only after DEUTSCH was satisfied that the purported business expenses had sufficiently decreased his tax liability were the tax returns finalized and filed. After DEUTSCH learned of the investigation, he used a different tax preparer to assist in the preparation of his subsequent years’ tax returns.
In total, for tax years 2013 through 2015, DEUTSCH claimed approximately $157,000 in false business expenses on Chasa Management’s returns and an additional approximately $111,000 in false business expenses on his individual income tax returns. DEUTSCH’s failure to properly pay taxes on his business income evaded approximately $82,076 in taxes due to the Internal Revenue Service (“IRS”), not including interest and penalties.
* * *
In addition to the prison term, Judge Cott ordered DEUTSCH, 52, of Brooklyn, New York, to serve one year of supervised release, to pay a fine in the amount of $5,500, and to pay restitution to the IRS in the amount of $107,007.05.
Ms. Strauss praised the outstanding work of IRS Criminal Investigation and the Special Agents of the U.S. Attorney’s Office. Ms. Strauss also thanked the New York City Department of Investigation for its assistance in the investigation.
The case is being prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorney Eli J. Mark is in charge of the prosecution.
Former Medical Student Sentenced for Online Sextortion SchemeRead the Press Release
NORFOLK, Va. – A Canadian man was sentenced to 40 years in prison today for orchestrating an online sextortion scheme and producing images of child sexual abuse.
“The defendant repeatedly engaged in the sexual exploitation and extortion of numerous young girls using threats and fear to commit devastating crimes,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “As this case demonstrates, we will aggressively pursue perpetrators of this unfathomable form of abuse – no matter how long it takes – to help bring a measure of justice and healing for the victims.”
According to court documents, Marco Viscomi, 36, of Ontario, was first identified by the Virginia Beach Police Department (VBPD) and Homeland Security Investigations (HSI) in 2012. In January 2012, a father of two girls, then ages 13 and 17 years old, reported to the VBPD that his daughters had been sexually extorted by someone they met online. The person online threatened the girls and forced the sisters to engage in sexually explicit conduct while he watched online from Canada. The VBPD and HSI traced the culprit to Ontario and identified Viscomi as the person responsible. Viscomi was a 26-year-old medical student at that time.
“After nearly a decade, this case is finally coming to a close because of the relentless work of law enforcement,” said Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C. “Viscomi manipulated young victims into engaging in sexually explicit conduct, and then, once identified, fought tirelessly to avoid facing charges for his actions. Today, justice was served, and another child predator is behind bars.”
Additional investigation uncovered Viscomi had engaged in similar sextortion conduct with hundreds of other victims, but not all victims were able to be identified. HSI was able to identify and locate over 70 such minors, including several sets of sisters who Viscomi terrorized online. In July 2012, Viscomi was charged in federal court in the Eastern District of Virginia and arrested in Canada. He fought extradition to the United States until December 2019, when the Canadian courts finally ordered him to be extradited to Norfolk to face the charges.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C.; and Paul Neudigate, Chief of Virginia Beach Police, made the announcement after sentencing by Senior U.S. District Judge Rebecca Beach Smith.
Assistant U.S. Attorneys Elizabeth M. Yusi and E. Rebecca Gantt prosecuted 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. Attorney’s Offices and the 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.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. 2:12-cr-134.
Former MacDill Airman Sentenced to More Than 15 Years in Federal Prison for Sexually Exploiting Children Using the InternetRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew has sentenced Trevor Mayer (24, Sheldon, Iowa) to 15 years and 8 months in federal prison for producing material depicting the sexual exploitation of children. Mayer was also ordered to serve a 15-year term of supervised release and to register as a sex offender.
Mayer had pleaded guilty on December 15, 2020.
According to court documents, Mayer sought out children as young as 13 years old online and asked them to send him sexually explicit images using a popular online messaging application (app) or to engage in sexually explicit conduct and livestream the video to him. At times, Mayer attempted to coerce his victims by threatening to harm them or by bribing them with gift cards. When the victims complied, Mayer then used a separate app to surreptitiously record the sexually explicit images and videos without his victims’ knowledge. Mayer also downloaded images depicting the sexual abuse of children as young as 6 years of age.
This case was investigated by the U.S. Air Force Office of Special Investigations. It was prosecuted by Assistant United States Attorney Colin McDonell.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Colorado Judge Sentenced for Obstructing Federal Investigation of Drug Trafficking OrganizationRead the Press Release
DENVER - A former Colorado state court judge was sentenced Wednesday in the District of Colorado to a year and one day in prison for obstructing a federal task force investigation of a large-scale cocaine trafficking organization.
Ryan Kamada, 42, of Windsor, Colorado, pleaded guilty on June 30, 2020. According to court documents, beginning in or around October 2018, a federal task force was investigating a drug trafficking organization that was distributing large quantities of cocaine throughout northern Colorado. One of the members of the organization was a drug trafficker who lived in Greeley, Colorado. Kamada learned about the investigation in his official capacity as a judge and then disclosed details of the investigation to a friend, who then tipped off the target individual. Kamada had known the drug trafficker since high school.
“By leaking the existence of a search warrant to help his close friend avoid possible criminal exposure, Ryan Kamada abused the power of his judicial position and violated the trust that the people of Colorado placed in him” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “This prosecution confirms that no person – even a judge – is above the law.”
“Public officials charged with upholding the law must be held to the same standard by which they judge others,” said Acting U.S. Attorney Matt Kirsch for the District of Colorado. “Former Judge Kamada has been held properly accountable for his breach of that public trust.”
“The FBI has a solemn responsibility to investigate allegations of public corruption and the abuse of power by any public servant,” said Special Agent in Charge Michael Schneider of the FBI’s Denver Field Office. “The actions of Ryan Kamada were not only illegal, but they also interfered with a federal investigation and undermined public trust in our judicial system. This sentence highlights the commitment of the FBI and our partners to root out corruption. FBI Denver thanks the Greeley Police Department and the U.S. Attorney’s Office for their dedication throughout this investigation.”
Beginning in January 2019, Kamada served as a District Court Judge of the 19th Judicial District of Colorado. While serving as the “on call” judge one evening in April 2019, Kamada received a phone call from a task force officer who was seeking a search warrant related to the investigation into the drug trafficker. The task force officer pointed out to Kamada that he was associated with the drug trafficker on social media. As a result, Kamada recused himself from the case. Early the next morning, Kamada called his best friend, Geoffrey Chacon, who had also known the drug trafficker since childhood. Kamada told Chacon that law enforcement was “watching” the drug trafficker’s house, car, and phone, and instructed Chacon to “stay away” from the drug trafficker. Chacon subsequently informed the drug trafficker about the warrant and modified Chacon’s own behavior to avoid law enforcement attention.
The information that Chacon provided to the drug trafficker also caused the drug trafficker to change his pattern of conduct and substantially interfered with the task force’s investigation. After Chacon relayed the information that he received from the judge to the drug trafficker, Chacon destroyed records of his communications with the drug trafficker to impair efforts by law enforcement to tie Chacon to the drug trafficker. In November 2019, Chacon pleaded guilty in federal court to one count of destruction of records with the intent to obstruct a federal investigation and he is scheduled to be sentenced on Aug. 27.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Matthew T. Kirsch of the District of Colorado; and Special Agent in Charge Michael H. Schneider of the FBI’s Denver Field Office made the announcement.
The FBI’s Denver Field Office investigated the case, with substantial assistance from the Greeley Police Department.
Trial Attorney John Taddei of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Bryan Fields of the District of Colorado prosecuted the case.
Former Colorado Judge Sentenced for Obstructing Federal Investigation of Drug Trafficking OrganizationRead the Press Release
A former Colorado state court judge was sentenced Wednesday in the District of Colorado to a year and one day in prison for obstructing a federal task force investigation of a large-scale cocaine trafficking organization.
Ryan Kamada, 42, of Windsor, pleaded guilty on June 30, 2020. According to court documents, beginning in or around October 2018, a federal task force was investigating a drug trafficking organization that was distributing large quantities of cocaine throughout northern Colorado. One of the members of the organization was a drug trafficker who lived in Greeley, Colorado. Kamada learned about the investigation in his official capacity as a judge and then disclosed details of the investigation to a friend, who then tipped off the target individual. Kamada had known the drug trafficker since high school.
“By leaking the existence of a search warrant to help his close friend avoid possible criminal exposure, Ryan Kamada abused the power of his judicial position and violated the trust that the people of Colorado placed in him,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “This prosecution confirms that no person – even a judge – is above the law.”
“Public officials charged with upholding the law must be held to the same standard by which they judge others,” said Acting U.S. Attorney Matt Kirsch for the District of Colorado. “Former Judge Kamada has been held properly accountable for his breach of that public trust.”
“The FBI has a solemn responsibility to investigate allegations of public corruption and the abuse of power by any public servant,” said Special Agent in Charge Michael Schneider of the FBI’s Denver Field Office. “The actions of Ryan Kamada were not only illegal, but they also interfered with a federal investigation and undermined public trust in our judicial system. This sentence highlights the commitment of the FBI and our partners to root out corruption. FBI Denver thanks the Greeley Police Department and the U.S. Attorney’s Office for their dedication throughout this investigation.”
Beginning in January 2019, Kamada served as a District Court Judge of the 19th Judicial District of Colorado. While serving as the “on call” judge one evening in April 2019, Kamada received a phone call from a task force officer who was seeking a search warrant related to the investigation into the drug trafficker. The task force officer pointed out to Kamada that he was associated with the drug trafficker on social media. As a result, Kamada recused himself from the case. Early the next morning, Kamada called his best friend, Geoffrey Chacon, who had also known the drug trafficker since childhood. Kamada told Chacon that law enforcement was “watching” the drug trafficker’s house, car and phone, and instructed Chacon to “stay away” from the drug trafficker. Chacon subsequently informed the drug trafficker about the warrant and modified Chacon’s own behavior to avoid law enforcement attention.
The information that Chacon provided to the drug trafficker also caused the drug trafficker to change his pattern of conduct and substantially interfered with the task force’s investigation. After Chacon relayed the information that he received from the judge to the drug trafficker, Chacon destroyed records of his communications with the drug trafficker to impair efforts by law enforcement to tie Chacon to the drug trafficker. In November 2019, Chacon pleaded guilty in federal court to one count of destruction of records with the intent to obstruct a federal investigation, and he is scheduled to be sentenced on Aug. 27.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, Acting U.S. Attorney Matthew T. Kirsch of the District of Colorado and Special Agent in Charge Michael H. Schneider of the FBI’s Denver Field Office made the announcement.
The FBI’s Denver Field Office investigated the case, with substantial assistance from the Greeley Police Department.
Trial Attorney John Taddei of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Bryan Fields of the District of Colorado prosecuted the case.
Federal Grand Jury Indicts 18 for Roles in Drug Trafficking Organization Operating in HuntingtonRead the Press Release
Over 47 Pounds of Fentanyl, 6.5 Pounds of Methamphetamine, 4.5 Pounds of Cocaine, 2 Pounds of Heroin, 14 Firearms and More Than $335,000 Seized
HUNTINGTON, W.Va. – After a lengthy investigation, 18 individuals have been indicted by a federal grand jury for their roles in a drug trafficking organization (DTO) operating in Huntington. Seventeen of these individuals are charged with conspiracy to distribute a variety of drugs including fentanyl, methamphetamine, cocaine, cocaine base (crack), oxycodone, and heroin. Other charges in the indictment include the distribution and possession with intent to distribute various drugs and using a telephone to facilitate a felony drug trafficking offense. The indictment was returned under seal on July 28, 2021 and unsealed today after the arrest of 14 defendants.
Earlier today, federal agents and officers from various law enforcement agencies executed arrest and search warrants in numerous locations in and around Huntington. Federal agents also executed a search warrant last week in Columbus, Ohio, leading to the seizure of approximately 36 pounds of fentanyl and the arrest of Brayan Luces.
The indictment alleges that Brayan Luces frequently supplied William Raeshaun Byrd of Huntington with large quantities of fentanyl and cocaine. The investigation revealed that Byrd often received multi-kilogram shipments of fentanyl and cocaine from Luces which were transported from Columbus to Huntington by vehicle. Byrd supplied multiple individuals including Christopher Leon Vest with fentanyl and cocaine. Vest in turn supplied Scott Lee Midkiff and Erica Antionette Kirker with fentanyl and methamphetamine. Byrd, Vest, Midkiff, and Kirker all distributed significant quantities of fentanyl, cocaine, and methamphetamine to other dealers in the Huntington area. This DTO utilized multiple residences throughout Huntington to store and prepare various drugs for distribution. Other individuals in the conspiracy distributed and or assisted in the distribution of methamphetamine, fentanyl, cocaine, cocaine base (crack), oxycodone and heroin in the Huntington area and other locations in West Virginia.
“The hard work and dedication of our law enforcement partners has led to the disruption of this dangerous DTO that was distributing large amounts of illegal drugs in the Huntington area,” said Acting United States Attorney Lisa G. Johnston. “I want to thank the FBI and our federal, state, and local partners that conducted the lengthy investigation and the many law enforcement officers who assisted in today’s takedown. Our efforts in this case should reassure the people of Huntington that we will continue to work tirelessly to identify and prosecute drug dealers at all levels in order to keep our communities safe.”
“The suspects charged in this indictment made a business out of selling dangerous, illegal drugs,” said FBI Pittsburgh Special Agent in Charge Mike Nordwall. “Today’s arrests send the message that their business venture is over. We will not tolerate brazen drug dealers operating in plain view near schools and in the community we all call home. The FBI focuses on dismantling these types of criminal organizations from the top down. I want the community in and around the Huntington area to know we, alongside our partners, are committed to making it a safer place for everyone.”
“The Cabell County Sheriff’s Department is proud to have participated in this long-term drug investigation with the FBI and other federal, state and local law enforcement agencies,” said Cabell County Sheriff Chuck Zerkle. “Through our collaborative efforts, we have removed many drug dealers from our streets, some of which have plagued our community for over 10 years.”
Those charged include:
William Raeshaun Byrd, 31, Huntington
Marvin Jerome Calvin, 40, Huntington
Mark Anthony Chandler, 30, Huntington
Kimberly Ann Combs, 44, Huntington
Robert Lamont Congleton, 41, Huntington
Reginald Jerome Hairston, 43, Huntington
Marcus Allen Johnson, 37, Huntington
Erica Antoinette Kirker, 34, Huntington
Brayan Luces, 24, Columbus, Ohio
Aaron Scott Midkiff, 36, Huntington
Edward Shane Midkiff, 34, Huntington
Scott Lee Midkiff, 35, Huntington
William Edward Nellons, Jr., 37, Huntington
Leonard Brandon Joe Rice, 34, Louisa, Kentucky
Dennis Wayne Snyder, 31, Hurricane
Ricky Lee Taylor, 57, Charleston
Christopher Leon Vest, 33, Huntington
Dillon Andrew Young, 28, Sissonville
The case was investigated by the Federal Bureau of Investigation (FBI) and the Southern West Virginia TOC-West Task Force consisting of the Cabell County Sheriff’s Department, the Hurricane Police Department, and the Marshall University Police Department, with support from the West Virginia State Police, the Drug Enforcement Administration (DEA) and the Violent Crime and Drug Task Force West. The Ohio Highway Patrol, the Kentucky State Police, and the FBI and DEA in Columbus also assisted in the investigation.
Assistant United States Attorneys Joseph F. Adams and Courtney L. Cremeans are prosecuting this case for the government.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00109.
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Fayette County Man Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – A Fayette County man pleaded guilty to a federal drug crime.
According to court documents, Anthony Maurice Bell, 54, of Oak Hill, possessed more than 400 grams of a substance containing fentanyl and a firearm in Oak Hill on January 26, 2021. Bell admitted that he intended to sell the fentanyl.
Bell pleaded guilty to possession with intent to distribute 40 grams or more of fentanyl and faces a mandatory minimum of five years and up to 40 years in prison when he is sentenced on November 4, 2021.
“The excellent work of the Oak Hill Police Department and the Central West Virginia Drug Task Force in this case prevented a significant amount of dangerous fentanyl from being distributed throughout our communities,” said Acting United States Attorney Lisa G. Johnston. “Fentanyl is the leading cause of overdose deaths in our state and the U.S. Attorney’s Office is working with law enforcement throughout the District to identify fentanyl dealers and hold them accountable.”
United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Nick Miller is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-00016.
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Fairbanks Area Man Sentenced to 15 Years for Possession of Child PornographyRead the Press Release
FAIRBANKS – A North Pole, Alaska, man was sentenced by Senior U.S. District Judge Ralph Beistline to 15 years in federal prison followed by a lifetime of supervised release for possession of child pornography after a prior conviction for sexual abuse of a minor.
According to court documents, Jason Patzke, 47, downloaded, accessed, and deleted pornographic videos depicting children as young as four and five years old engaged in sexual acts with adults.
In June 2018 the Federal Bureau of Investigation downloaded the videos in question from a BitTorrent account they later linked to Jason Patzke. During an interview with FBI detectives, Patzke admitted downloading child pornography images and videos. He stated that he deleted the images from his computer using a scrubber program.
Patzke was subject to increased penalties due to prior State of Alaska felony convictions for sexual abuse of an 11-year-old in 2001 and indecent exposure involving teenagers in 2004.
“The streets and children in the Fairbanks area are safer today with Patzke in federal prison for the next 15 years,” said Acting U.S. Attorney Bryan Wilson, District of Alaska. “We are committed to aggressively prosecuting and holding accountable those who create, possess or distribute child pornography, particularly those with a history of abusing children. We can never rest as long as even one child is being robbed of their childhood in this horrific manner.”
“Sexual exploitation of children is one of the most egregious offenses against one of our most vulnerable populations,” said Assistant Special Agent in Charge Adam Pierce of the FBI’s Anchorage Field Office. “The defendant knowingly exploited innocent children, including toddlers, for his own indulgence. Those who engage in such conduct should expect to be held accountable.”
The Federal Bureau of Investigation (FBI) Child Exploitation and Human Trafficking Task Force conducted the investigation.
Assistant U.S. Attorney Daniel Doty prosecuted 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 visit www.justice.gov/psc.
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Erie Man Pleads to Child Sexual Exploitation ChargeRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, pleaded guilty in federal court to a charge of violating federal laws relating to the sexual exploitation of children, Acting United States Attorney Stephen R. Kaufman announced today.
Cody A. Neely, 33, pleaded guilty to one count before United States District Judge Stephanie L. Haines.
In connection with the guilty plea, the court was advised that from May 2019 to October 2019, Neely received computer images and movies depicting prepubescent minors engaging in sexually explicit conduct. A forensic examination of Neely’s digital devices revealed thousands of items of child sexual abuse material.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Judge Haines scheduled sentencing for December 7, 2021 at 11:00 a.m. The law provides for a total sentence of 20 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.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
Homeland Security Investigations conducted the investigation that led to the prosecution of Neely.
Eagle Grove Man to Federal Prison for Meth ConvictionRead the Press Release
A man who conspired to distribute methamphetamine was sentenced July 27, 2021, to 5 years in federal prison.
Donovan Lalor, 50, from Eagle Grove, Iowa, was convicted of one count of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine.
At the plea hearing, Lalor admitted that he conspired to distribute more than 5 pounds of pure methamphetamine from January 2019 through March 2020 in the Wright and Webster County areas. Lalor admitted he regularly obtained up to half-pound quantities of meth for redistribution along with other co-conspirators. Their source was a residence located within 1,000 feet of a protected location, namely, Greenwood Park in Eagle Grove, Iowa.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Lalor remains in custody of the United States Marshal until he can be transported to a federal prison. Lalor was sentenced to 60 months’ imprisonment and must serve a term of 8 years of supervised release following imprisonment.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Iowa Division of Narcotics Enforcement, Wright County Sheriff’s Office, Eagle Grove Police Department, and Iowa Criminalistics Laboratory.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-3012.
Follow us on Twitter @USAO_NDIA.
Dominican National Pleads Guilty to Social Security Misuse and Making False StatementRead the Press Release
BOSTON – A Dominican national previously residing in Taunton pleaded guilty today to false representation of a Social Security number and making a false statement relating to health care matters.
Reynold Pereyra Diaz, 39, pleaded guilty to one count of false representation of a Social Security number and one count of making a false statement relating to a federal health care program. U.S. District Court Judge Allison D. Burroughs deferred acceptance of the plea until sentencing, which is scheduled for Nov.18, 2021. Pereyra Diaz was arrested and charged in December 2019.
Pereyra Diaz used the name and identifiers of a U.S. citizen for at least 18 years, including to obtain a Massachusetts driver’s license and to apply for MassHealth benefits. In addition, during a traffic stop in 2015, Pereyra Diaz provided police with a driver’s license in the victim’s name and was found in possession of 15 baggies containing a substance believe to be cocaine located in a hidden compartment of his vehicle. As a result, Pereyra Diaz was indicted under the victim’s name on drug trafficking charges, which were later dropped. Pereyra Diaz also applied for a $48,000 car loan under the victim’s identity in 2016.
A search of Pereyra Diaz’s residence in December 2018 recovered a marriage license under his true name as well as a driver’s license, birth certificate, Social Security card and bank cards under the victim’s stolen identity.
The investigation was conducted by Homeland Security’s Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized field investigative group comprised of personnel from various local, state, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity, and benefit fraud schemes.
The charges of false representation of a Social Security number and making a false statement relating to a federal health care program each provide for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; and Phillip M. Coyne, Special Agent in Charge of the U.S. Department of Health & Human Services, Office of Inspector General, made the announcement today. Valuable assistance was provided by the Social Security Administration, Office of Inspector General, Office of Investigations; U.S. Postal Inspection Service; U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations; U.S. Department of State, Diplomatic Security Service; U.S. Department of Housing and Urban Development, Office of Inspector General; U.S. Department of Labor, Office of Inspector General; and the Lynn, Lawrence and Taunton Police Departments. Assistant U.S. Attorney Benjamin A. Saltzman of Mendell’s Major Crimes Unit is prosecuting the case.
Danville Man Sentenced to 114 Months in Prison for Brandishing a Firearm During a Robbery of the Casey’s General Store in DanvilleRead the Press Release
URBANA, Ill. – A Danville, Ill., man, Courtland Rowell, Jr., 21, of the 900 block of Moore Street has been sentenced to 114 months for obstruction of commerce by robbery and brandishing a firearm during and in relation to a crime of violence.
At Rowell’s sentencing hearing, U.S. District Court Judge Colin S. Bruce sentenced Rowell to 30 months of imprisonment for the obstruction of commerce by robbery charge, and an additional 84 months for brandishing a firearm during and in relation to a crime of violence. Both sentences were ordered to be served consecutively. Rowell was also ordered to pay restitution to the victim of the offense.
The charges arose from a late-night robbery of the Casey’s General Store at 845 East Voorhees Street in Danville on June 3, 2019. Rowell and another individual entered the store wearing masks and dark clothing. Brandishing a firearm, Rowell ordered the store’s employees to comply while his partner cleared out the register. Law enforcement was alerted to the robbery in progress and captured Rowell as he fled from the scene. Charges are still pending in the Central District of Illinois against another individual related to this offense.
Rowell pled guilty to the charges on March 18, 2021.
The Department of Justice’s recent renewed commitment to Project Safe Neighborhoods establishes four fundamental principles to guide efforts to reduce violent crime: 1) build trust and legitimacy within communities; 2) invest in community-based prevention and intervention programs; 3) target enforcement and priorities to focus resources on identifying, investigating, and prosecuting the most significant drivers of gun violence and other violent crime; and, 4) measure results with the goal to reduce the level of violence in our communities and not to increase the number of arrests and prosecutions as if they were ends in themselves. For more information on the Project Safe Neighborhoods program visit https://www.justice.gov/psn
“To help make our community safer, the United States Attorney’s Office remains fully vested in all of the pillars of project Safe Neighborhoods. We will continue to work with our law enforcement and State’s Attorney partners to prosecute the most deserving violent offenders in the proper forum while at the same time marshaling all available Department of Justice resources to promote the other three pillars.” Said Acting United States Attorney Doug Quivey. A holistic approach to reduce gun violence to include full community cooperation is essential.”
The Danville Police Department and Vermilion County Sheriff’s Office investigated the case. Assistant U.S. Attorney Bryan Freres represented the government in the prosecution in coordination with the Vermilion County State’s Attorney’s Office.
Cortland County Man Pleads Guilty to Sexually Exploiting a ChildRead the Press Release
SYRACUSE, NEW YORK – Lawrence Berry, 27, of Marathon, New York pled guilty today to one count of conspiracy to sexually exploit a child and five counts of sexual exploitation of a child, announced Acting United States Attorney Antoinette T. Bacon and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his guilty plea, Berry admitted that he conspired with Brittany Berry (who has already pleaded guilty to the same charges) to sexually exploit a 3-year-old minor child in August and September of 2018 and that he directed Brittany Berry to sexually exploit the child on five different occasions for the purpose of creating and sending images and videos (live and recorded) of the sexual abuse to him over the internet.
Sentencing is scheduled for November 23, 2021 in Utica before United States District Judge David N. Hurd. Berry faces a minimum sentence of 15 years and up to 30 years in prison on each of the six counts of conviction. He also will be required to spend at least 5 years and up to a lifetime term on post-imprisonment supervised release. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Upon release from prison Berry will be required to register as a sex offender in any state where he lives, is employed, or is a student.
This case was investigated by the FBI and the City of Cortland Police Department and is being prosecuted by Assistant U.S. Attorney Michael D. Gadarian and Special Assistant U.S. Attorney Adrian LaRochelle as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney's offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Cook County Man Sentenced to 64 months in Prison for Possessing Firearms as a Convicted FelonRead the Press Release
URBANA, Ill. – A Dolton, Ill., man, Jerry Caldwell, 59, of the 14000 block of Shepard Drive has been sentenced to 64 months in the Bureau of Prisons for possessing firearms as a convicted felon.
At Caldwell’s sentencing hearing on July 12, 2021, Senior U.S. District Court Judge Michael M. Mihm found Caldwell was responsible for possessing three handguns, one of which had an obliterated serial number. At the time of sentencing, Judge Mihm rejected Caldwell’s testimony that he bought the guns because he intended to turn them over to a nonprofit organization that worked to remove guns from the street.
The charges arose from a drug investigation conducted by the Kankakee Area Metropolitan Enforcement Group. Law enforcement learned that Caldwell was attempting to purchase several handguns from a detainee at the Jerome Combs Detention Center in Kankakee, who was trying to sell the guns through a third party while he was in custody. During covertly recorded phone calls, Caldwell told the seller that he was purchasing the guns so he could resell them to another individual in Chicago. On April 1, 2020, Caldwell traveled to Kankakee County and purchased the guns. During a traffic stop, law enforcement arrested him and seized the three handguns he purchased. Officers also seized a shotgun and AK-47-style rifle from a residence in Kankakee that Caldwell declined to purchase.
The Department of Justice’s recent renewed commitment to Project Safe Neighborhoods establishes four fundamental principles to guide efforts to reduce violent crime: 1) build trust and legitimacy within communities; 2) invest in community-based prevention and intervention programs; 3) target enforcement and priorities to focus resources on identifying, investigating, and prosecuting the most significant drivers of gun violence and other violent crime; and, 4) measure results with the goal to reduce the level of violence in our communities and not to increase the number of arrests and prosecutions as if they were ends in themselves.
“The prosecution of this case falls squarely into the third pillar of Project Safe Neighborhoods, said Acting United States Attorney Doug Quivey. The illegal gun trade helps fuel the violence plaguing our community and the broader surrounding area. Working closely with our law enforcement partners, we remain committed to curtailing it.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kankakee Area Metropolitan Enforcement Group, Kankakee Police Department, and Kankakee County Sheriff’s Department investigated the case. Assistant United States Attorney Bryan Freres represented the government in the prosecution.
Citizen of Dominican Republic Sentenced to 37 Months for Distributing Fentanyl in Troy and RensselaerRead the Press Release
ALBANY, NEW YORK – Junior Rafael Arias Soto, age 50, a citizen of the Dominican Republic and a resident of Troy, New York, was sentenced today to 37 months in prison for distributing fentanyl in the cities of Rensselaer and Troy.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division.
As part of his guilty plea, Arias Soto admitted that between June 2019 and June 2020, he distributed at least 155 grams of a fentanyl mixture to customers in Troy and Rensselaer.
Chief United States District Judge Glenn T. Suddaby also imposed a 2-year term of supervised release, to begin after Arias Soto’s release from prison. Arias Soto has been in custody since his arrest in June 2020 and is subject to deportation following the completion of his prison sentence.
This case was investigated by the DEA, with assistance provided by Homeland Security Investigations (HSI), the Rensselaer Police Department and the Troy Police Department, and was prosecuted by Assistant U.S. Attorney Emmet J. O’Hanlon.
Cayuga County Man Pleads Guilty to Receipt and Possession of Child Pornography, and to Unlawful Possession of a FirearmRead the Press Release
SYRACUSE, NEW YORK – Richard J. Potter, Jr., age 57, of Springport, New York, pled guilty today to charges of receipt and possession of child pornography, and to possession of a firearm by a prohibited person. The announcement was made by Acting United States Attorney Antoinette T. Bacon and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
In pleading guilty before United States District Judge David N. Hurd in Utica, Potter admitted that from June 2018 to in or about January 2019, he used the Internet to search for and receive child pornography. Potter also admitted that on January 23, 2019, he possessed a total of 33,066 images and 206 videos of child pornography on 35 separate electronic devices, and 451 images of child pornography in a cloud storage account that he maintained and controlled.
Potter, who was previously convicted in 2003 of a crime related to the sexual abuse of a minor, faces at least 15 years and up to 40 years in prison for the child pornography crimes, as well as a term of supervised release of between 5 years and life. Upon his release from prison, Potter will be required to register as a sex offender in any state where he lives, is employed, or is a student.
Potter also pled guilty to being a felon in possession of a firearm, admitting that on January 23, 2019, he possessed a 12-gauge shotgun. For this offense, Potter faces up to 10 years in prison.
A defendant’s sentence is imposed by a judge based on the statute the defendant violated, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the FBI Syracuse Mid-State Child Exploitation Task Force. This task force is comprised of FBI Special Agents and Investigators of the New York State Police, Bureau of Criminal Investigation (BCI). The case is being prosecuted by Special Assistant U.S. Attorney Adrian S. LaRochelle as a part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
California-Based Narcotics Trafficker Sentenced to Nearly Five Years in Federal Prison for Conspiracy to Distribute Fentanyl and Other Drugs to Maryland and Other East Coast CommunitiesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced Ana Christina Avalos a/k/a “Christina Cazares-Quintero”, age 35, of Phelan, California, to 57 months in federal prison, followed by five years of supervised release for conspiracy to distribute and possession with intent to distribute controlled substances.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration - Washington Division; Chief Malik Aziz of the Prince George’s County Police Department; Chief Marcus Jones of the Montgomery County Police Department and Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police.
According to her plea agreement, between at least December 2018 and January 2020, Avalos conspired with others to distribute and posses with the intent to distribute fentanyl, cocaine, and marijuana. Avalos and a co-conspirator resided in California and acted as international narcotic importers for a drug trafficking organization.
Along with a co-conspirator, Avalos supplied narcotics to fellow co-conspirators who then shipped narcotics from the west coast to the east coast of the United States. A New York based co-conspirator supplied co-conspirators in Maryland, Washington D.C., and the Northern Virginia areas. Avalos regularly traveled to the New York area to collect money from accomplices and other narcotic customers.
For example, on May 21, 2019, Avalos received $9,000 as partial payment for a drug transaction totaling in $22,500. In exchange, Avalos provided the associate with cocaine. Over the course of the next month, at Avalos’s instruction, a co-conspirator made payments to Avalos by depositing money orders into Avalos’s checking account.
Law enforcement also captured three phone calls between Avalos and co-conspirators in which they discuss the quality, logistics, and potential financial gain from trafficking-controlled substances. Additionally, there were a number of drug-laden packages shipped from the west coast to the east coast as part of the drug trafficking conspiracy. Law enforcement captured four parcels and discovered approximately 505 grams of cocaine, approximately 5.73 pounds of marijuana, approximately 9.2 grams of marijuana, and 28 pounds of marijuana inside the respective parcels.
As stated in the plea agreement, on January 8, 2020 law enforcement officers executed a search warrant at several locations important to the drug trafficking organization, including Avalos’s and a co-conspirator’s shared California residence, a Virginia residence, and another co-conspirator’s California residence. Officers recovered approximately 500 grams of marijuana, a .38 caliber revolver, and a semi-automatic handgun from Avalos’s residence. As a result of a search warrant conducted at a co-conspirator’s California residence and a co-conspirator’s Virginia residence, officers seized four cell phones, a drug ledger, drug packaging materials, two heat sealers, approximately 17 pounds of marijuana, one kilogram of cocaine, approximately 48 grams of heroin, and other drug packaging tools.
In total, officers recovered approximately 866 grams of fentanyl, approximately 1,505 grams of cocaine, and at least 36,897 grams of marijuana.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Acting United States Attorney Jonathan F. Lenzner commended the DEA, the Maryland State Police, and the Prince George’s County Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Erin B. Pulice and Timothy F. Hagan who prosecuted the case.
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California Man Pleads Guilty to Defrauding Thousands of Donors to Scam Political Action Committees by Impersonating U.S. Senate Candidates and CampaignsRead the Press Release
Audrey Strauss, United States Attorney for the Southern District of New York, announced the guilty plea today of JOHN PIERRE DUPONT, a/k/a “John Gary Rinaldo,” in connection with a years-long scheme to defraud thousands of donors to scam political action committees that impersonated numerous U.S. Senate campaigns and candidates. DUPONT pled guilty to wire fraud and aggravated identity theft before U.S. District Judge Richard M. Berman.
U.S. Attorney Audrey Strauss said: “In impersonating campaigns and candidates to raise money for fake political action committees, John Pierre Dupont took advantage of thousands of vulnerable individual donors who believed they were contributing to causes they believed in. Instead, hundreds of thousands of dollars that were intended to be legitimate donations were instead stolen by the defendant for his own personal enrichment. With today’s guilty plea, Dupont has admitted to his scheme and now faces a significant term of incarceration.”
According to the allegations in the Indictment, court filings, and statements made during court proceedings:
From 2015 through 2019, DUPONT defrauded thousands of donors who believed they were donating to three political action committees established by DUPONT (the “Scam PACs”), or to campaigns the Scam PACs falsely claimed to support. DUPONT’s scheme resulted in hundreds of thousands of dollars being donated through websites he controlled and operated, none of which was donated to campaigns or causes.
The websites purported to be raising money in support of senate campaigns and candidates, a candidate for governor, and a candidate for president. Another website operated by DUPONT purported to be raising money “to unite immigrant families,” falsely claiming that donations to the Foundation for Sanity in Politics PAC would “go to help pay our volunteer attorneys’, doctors’, nurses’ and social workers’ costs and pay for transportation to unite immigrant families.” In fact, that PAC had no volunteers or staff, and dedicated no funds to paying for any action or advocacy.
DUPONT’s scheme targeted victims throughout the country, raising funds based on fraudulent representations that the donations would support the relevant causes, candidates, and campaigns. In reality, all of the money raised was kept and used by DUPONT, including to continue perpetrating the fraud through additional fundraising and overhead expenditures. None of the money donated to the Scam PACs was spent on political contributions, and DUPONT failed to report the donations, as required, in filings with the Federal Election Commission.
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DUPONT, 82, of Blythe, Ca, pled guilty to one count of wire fraud, which carried a maximum sentence of 20 years in prison, and one count of aggravated identity theft, which carries a mandatory two years in prison consecutive to any other sentence imposed. 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. Sentencing before Judge Berman is scheduled for October 21, 2021, at 10:00 a.m.
Ms. Strauss praised the outstanding investigative work of the Special Agents of the United States Attorney’s Office for the Southern District of New York.
If you think you are a victim of the scheme alleged in this press release, please contact Wendy Olsen, Victim & Witness Services for the U.S. Attorney’s Office for the Southern District of New York, at 866-874-8900.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorney Alex Rossmiller is in charge of the prosecution.
Buffalo Man Who Ran Cross-Country Drug Conspiracy Going to Prison for More Than 10 YearsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy, Jr. announced today that Antwan Hugley, a/k/a Twan; a/k/a Anthony Carter; a/k/a Juan Luis Rodriguez-Martinez; 42, of Atlanta, GA, who pleaded guilty to conspiring to possess with intent to distribute, and distributing, five kilograms or more of cocaine, and possession of firearms in furtherance of drug trafficking activities, was sentenced to serve 130 months in prison by Chief U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Michael J. Adler, who handled the case, stated that between 2010 and June 29, 2016, the defendant conspired with others to sell cocaine. Hugley obtained kilogram bricks of cocaine from Georgia and Texas for distribution in the Buffalo area and elsewhere. At various times in 2013 and 2014, the FBI seized cocaine from multiple individuals who purchased their cocaine from the defendant. Also in 2014, the defendant possessed a firearm while in a vehicle with his wife. It was Hugley’s firearm, and he possessed this firearm at other times during drug transactions.
In 2015 a Greyhound bus entered Canada via the Peace Bridge Port of Entry. Law enforcement officers searched a bag, which had originated in Atlanta, GA, found it to contain five kilograms of cocaine. The bag was intended for delivery in Buffalo and belonged to Hugley. A Greyhound employee in Buffalo reported that an unknown man came to pick up the luggage in Buffalo, but abruptly walked away when told “I hope your luggage wasn't the one with a lot of drugs.”
In 2016, Hugley was arrested in Orlando, Florida and found to have in his possession a driver's license with his picture in the name Juan Luis Rodriguez-Martinez. He also had a piece of paper with the social security number for Martinez and several credit/debit cards in that name. The defendant had a bank account in that name which revealed nearly $90,000 in and out of the account in about 15 months. The expenses were primarily related to hotels, planes, and rental cars in Houston, Atlanta, and Rochester, NY, which were locations associated with the Hugley’s drug-trafficking activity.
The sentencing is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Stephen Belongia, Special Agent-in-Charge, and the Houston Police Department, under the direction of Police Chief Troy Finner.
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