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9 September 2021
Tulsa Resident Pleads Guilty to Robbery in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Hunter Ray Kelley, 20, entered a guilty plea to Robbery in Indian Country in violation of 18 United States Code Sections 1151, 1152, and 2111, punishable by imprisonment for a period of no more than 15 years and/or a fine of up to $250,000.00, a term of supervised release to be determined by the Court, and a special assessment fee in the amount of $100.00.
The Indictment alleged that on or about May 13, 2021, the defendant went inside a convenience store brandishing what appeared to be a tan AR-15-style rifle. The defendant pointed the rifle at the clerk and demanded money. When the defendant left the store, it was with cash, cartons of cigarettes, loose cigars and cigarillos, and lighters. The defendant then led police officers and deputy sheriffs on a high-speed chase before he stopped and surrendered.
The charges arose from an investigation by the Okmulgee Police Department, the Okmulgee Sheriff’s Office, and the Federal Bureau of Investigation.
The Honorable Jodi Warmbrod Dishman, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant U.S. Attorney Anthony C. Marek represented the United States.
Tulsa Man Sentenced for Shooting a Minor During an Illegal Handgun SaleRead the Press Release
A Tulsa man who shot and killed a minor during an illegal firearms sale was sentenced Thursday in federal court, announced Acting U.S. Attorney Clint Johnson.
U.S. District Judge Gregory K. Frizzell sentenced Carl John Irons Jr., 20, to 10 years in federal prison followed by three years of supervised release. On June 9, 2021, Irons pleaded guilty to voluntary manslaughter in Indian Country.
“An illegal gun sale ended in tragedy when a 16-year-old was killed in an exchange of gunfire,” said Acting U.S. Attorney Clint Johnson. “Too many families have lost children to gun violence. These shootings are a waste of young lives. My thoughts are with this family as they continue to grieve the loss of this young man.”
In a plea agreement, Irons admitted to shooting and killing the minor victim on Feb. 4, 2020. The incident occurred when two groups met for an illegal gun sale. A conflict arose between the two groups, leading to an exchange of gunfire. The victim, who was in the opposing group, was shot in the head and body and died at an area hospital on Feb. 8, 2020. The crime occurred at an apartment complex on South Mingo Road in Tulsa.
The victim was a citizen of the Cherokee Nation, and the crime was committed within the boundaries of the Muscogee Nation.
The Tulsa Police Department and FBI conducted the investigation. Assistant U.S. Attorney Eric O. Johnston prosecuted the case.
Trio of Cyber Criminals Plead Guilty to Conspiracy to Commit Fraud and Aggravated Identity TheftRead the Press Release
Orlando, Florida – Alessandro Doreus (28, North Miami) today pleaded guilty to one count of conspiracy to possess 15 or more access devices with the intent to defraud and two counts of aggravated identity theft. His co-defendants, Jean Elie Doreus Jovin (33, Loganville, GA) and Djouman Doreus (29, North Miami), had pleaded guilty to the same charges last month. All three defendants face a maximum penalty of five years in federal prison for the conspiracy charge, and a minimum mandatory penalty of two years in federal prison for the aggravated identity theft charges.
According to the plea agreements, from at least 2015 through 2020, Jovin, Alessandro Doreus, and Djouman Doreus conspired to knowingly, and with intent to defraud, possess tens of thousands of counterfeit and unauthorized access devices—including the names, Social Security numbers, account numbers, usernames, and passwords of identity theft victims. The conspirators frequently exchanged these counterfeit and unauthorized access devices—in bulk—among themselves. For example, in November 2018, Jovin emailed Alessandro Doreus a file that contained data for approximately 58,700 credit cards. The conspirators also routinely sent each other messages that contained scores of names, Social Security numbers, and dates of birth of identity theft victims.
The conspirators engaged in a number of fraudulent schemes using the personally identifiable information (PII) that they had amassed. They fraudulently opened and used numerous financial accounts in the names of identity theft victims. They also used stolen or fraudulently obtained credit card information to pay fake vendor accounts that Jovin opened and controlled. In addition, they used the names and Social Security numbers of identity theft victims to file fraudulent tax returns and obtain tax refunds to which they were not entitled.
Jovin also purchased multiple compromised computer server credentials (including usernames and passwords) on a dark web marketplace and used those compromised server credentials to remotely and fraudulently access computer servers. At times, Jovin shared these compromised server credentials with Alessandro Doreus.
To make it difficult for authorities to trace and attribute fraudulent activity to them, the conspirators created dozens of email accounts—one of which was [email protected]. The conspirators used these email accounts exclusively or primarily to perpetuate their fraud scheme.
In August 2020, the FBI executed a search warrant at Alessandro Doreus’s home and seized notebooks that contained the PII of more than 300 identity theft victims and credit cards issued in the names of identity theft victims. The FBI also seized $490,365, which are proceeds obtained from this conspiracy.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. It is being prosecuted by Assistant United States Attorney Emily C. L. Chang.
Three San Francisco Garbage Companies Admit Bribery and Pay $36 Million to Resolve Federal InvestigationRead the Press Release
SAN FRANCISCO – Three trash disposal companies that serve San Francisco, all subsidiaries of Recology Inc., were charged today in federal court with conspiracy to commit honest services fraud and have agreed to pay $36 million in criminal penalties, to revamp their corporate structure, and to cooperate fully in ongoing law enforcement and regulatory investigations, announced Acting United States Attorney Stephanie M. Hinds, Federal Bureau of Investigation Special Agent in Charge Craig D. Fair, and Internal Revenue Service Criminal Investigation Acting Special Agent in Charge Michael Daniels.
“San Francisco citizens were victimized for years in a bribery scheme involving public contractors and a powerful, corrupt San Francisco public official,” announced Acting United States Attorney Stephanie M. Hinds. “San Francisco citizens expect and deserve honest services from its government. Today, the SF Recology Group and its parent company Recology, Inc. are taking positive steps to rectify that flagrant wrong and have committed to full cooperation in the ongoing investigation into San Francisco City Hall corruption.”
“Today’s resolution is the result of years of hard work by the FBI and its partners to combat corruption in San Francisco,” said Craig D. Fair, Special Agent in Charge of the FBI San Francisco Field Office. “While engaging in bribery, SF Recology Group prioritized money over the trust of their customers. The FBI remains committed to seeking out instances of public corruption and holding those who violate federal law accountable for their actions.”
“The significant amount of illegal kickbacks SF Recology Group paid to Mohammed Nuru demonstrates a corrupt and reprehensible cheating of the American public,” said IRS Criminal Investigation Acting Special Agent in Charge Michael Daniels. “It is unacceptable and illegal to help yourself to public funds, but if you do, know this: IRS Criminal Investigation will be there waiting to seek justice on behalf of the citizens of San Francisco.”
The federal information filed today alleges that the companies Recology San Francisco, Sunset Scavenger Company, and Golden Gate Disposal & Recycling Company – collectively referred to as the SF Recology Group – conspired to bribe the former Director of San Francisco’s Department of Public Works (DPW), Mohammed Nuru. The entities of the SF Recology Group are each privately-held companies of their parent company Recology Inc., which is headquartered in San Francisco (the City) and provides trash collection services for the City’s residents, businesses, and government. During the conspiracy, Mohammed Nuru presided as Director over DPW. DPW had an annual budget of more than $350 million and was one of San Francisco’s largest municipal operations. Nuru had substantial influence over the SF Recology Group’s business with the City, including the ability to influence its contract rates and to approve or deny its proposed operational changes.
The criminal investigation and prosecution against the SF Recology Group is being resolved with a deferred prosecution agreement. In the agreement, which is subject to court approval, the SF Recology Group admits the allegations against it and that it conspired to bribe DPW Director Nuru from 2014 through January 2020, when Nuru was arrested and charged. The SF Recology Group at the time employed Paul Giusti as its Group Government and Community Relations Manager. Giusti reported to John Porter, the Vice President and General Manager of the Group and, before Porter assumed that position, to Porter’s predecessor.
In the agreement, the SF Recology Group admits that Giusti and others directed a stream of benefits to Nuru, including financial contributions, services, gifts, and other things of value, in exchange for Nuru taking official actions and positions favoring the SF Recology Group’s business and contracts with the City. The payments and benefits that the SF Recology Group provided to Nuru included the following: (1) $150,000 per year, in $30,000 installments, from 2014 through the end of 2019, to a San Francisco non-profit organization knowing that Nuru could ultimately control how the money was spent; (2) $60,000 to fund Nuru’s annual DPW holiday bash from 2016 to 2019, disguised as “holiday donations” to the Lefty O’Doul’s Foundation for Kids; (3) a job for Nuru’s son at a SF Recology Group company; (4) SF Recology Group-funded internships for Nuru’s son in the summers of 2017 and 2018 at a San Francisco non-profit on whose board Giusti served; and (5) other gifts, including a two-night stay at a New York hotel for Nuru and another high-ranking city official totaling $865.34 per room. The SF Recology Group admits that Giusti made these bribes with the knowledge and approval of his supervisor Porter and, before Porter was Giusti’s supervisor, with the knowledge and approval Porter’s predecessor.
The deferred prosecution agreement requires the SF Recology Group to pay a $36 million criminal fine. In addition to the $36 million fine, the deferred prosecution agreement obligates Recology, Inc. to fully cooperate with government investigations, to implement an enhanced corporate compliance program, and to provide annual reports to the United States Attorney’s Office on implementation and remediation.
If Recology, Inc. or the SF Recology Group fail to completely perform or fulfill each of their obligations under the agreement during the agreement’s three year term, the U.S. Attorney’s Office can pursue criminal charges for the charged offense and other conduct.
Dates for arraignment of the SF Recology Group and further proceedings before the United States District Court have not yet been set.
Giusti and Porter were each charged earlier in this investigation. Giusti was charged with bribery and money laundering on November 18, 2020, and he recently pleaded guilty to one count of conspiracy to bribe a local official and commit honest services fraud and agreed to cooperate with federal investigators (case # 21-0294 WHO). On April 13, 2021, Porter was also charged with bribery and money laundering (case # CR 21-70609 MAG). Porter’s criminal prosecution remains underway.
The case is being prosecuted by the Corporate and Securities Fraud Section of the U.S. Attorney’s Office. The case is being investigated by the FBI and IRS Criminal Investigation.
Three Operators of Financial Services Firm Indicted for $155 Million Investment FraudRead the Press Release
BROOKLYN, NY – An indictment was unsealed yesterday in federal court in Brooklyn charging three former operators of financial services firm Biscayne Capital with conspiring to defraud investors and financial institutions in an international fraud scheme that caused more than $155 million in investor losses. Roberto Gustavo Cortes Ripalda (“Cortes”), Fernando Haberer Bergson (“Haberer”) and Ernesto Heraclito Weisson Pazmino (“Weisson”) are charged with conspiracy to commit wire fraud, bank fraud and money laundering. Weisson was arrested yesterday in Florida, made his initial appearance yesterday afternoon in federal court in Miami and was ordered held pending a detention hearing. Cortes and Haberer were arrested yesterday in Spain and Argentina, respectively.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, Kenneth A. Polite Jr., Assistant Attorney General of the Justice Department’s Criminal Division, Darrell J. Waldon, Acting Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, Washington, D.C. Field Office (IRS-CI), and Raymond Villanueva, Special Agent in-Charge, Homeland Security Investigations, Washington, D.C. Field Office (HSI), announced the arrests and charges.
“As alleged, the defendants orchestrated a complex and fraudulent scheme to repeatedly mislead investors about the nature and performance of their investments. The defendants enriched themselves with millions of dollars in investor funds while making misrepresentations that caused more than $155 million in investor losses,” stated Acting United States Attorney Kasulis. “The charges demonstrate this Office’s commitment to ensuring integrity in the management of investor funds and prosecuting those who commit fraud to enrich themselves at their investors’ expense.” Ms. Kasulis also expressed her appreciation to the IRS-CI Boston Field Office for their assistance with the case.
“The charges unsealed yesterday reflect the seriousness of criminal activities carried out by the defendants. Our agency, and particularly the D.C. based Global Illicit Financial Team, remains dedicated to rigorously investigating criminal organizations that jeopardize the integrity of our financial system,” stated IRS-CI Acting Special Agent-in-Charge Waldon.
“Financial schemes like the one alleged here not only damage the lives of those victimized by the fraud, but the international money laundering involved poses a direct threat to the security of the U.S. financial system,” stated HSI Special Agent-in-Charge Villanueva. “HSI is committed to working with its law enforcement and private sector partners to investigate these criminal enterprises and stop them in their tracks.”
As alleged in the indictment, Biscayne Capital was a financial services company founded in approximately 2005 and maintained offices in Florida, Ecuador, Argentina, the Bahamas and Uruguay. Between approximately 2013 and 2018, Cortes, Haberer and Weisson, together with others, orchestrated a scheme to defraud Biscayne Capital clients and financial institutions through a series of material misrepresentations and omissions about how Biscayne Capital client funds would be used. The defendants and their co-conspirators used the funds they fraudulently obtained from clients and financial institutions to pay other investors, cover Biscayne Capital expenses and pay themselves millions of dollars.
The indictment further alleges that the defendants and their co-conspirators falsely represented to some Biscayne Capital clients that the clients’ investments in certain private investment products (referred to in the indictment as “Proprietary Products”) would be used to finance the development of real estate projects. In reality, the defendants and their co-conspirators used clients’ investments to pay other Biscayne Capital clients. In some cases, the defendants and their co-conspirators invested in Proprietary Products without the clients’ knowledge and provided clients with fraudulent account statements that showed fake investments. The defendants and others also conspired to fraudulently induce financial institutions to extend short-term credit to help further the scheme. Haberer then generated fake letters of authorization to repay the banks out of Biscayne Capital clients’ accounts without those clients’ authorization.
In approximately September 2018, the scheme collapsed, and Biscayne Capital went into liquidation, resulting in more than $155 million in losses to Biscayne Capital clients.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Business and Securities Fraud Section and the Criminal Division’s Money Laundering and Asset and Recovery Section (“MLARS”) and Fraud Section. Assistant United States Attorneys David Gopstein and Benjamin Weintraub of the Eastern District of New York, MLARS Trial Attorneys Randall Warden and Shaunik R. Panse and Fraud Section Trial Attorney John (Fritz) Scanlon are in charge of the prosecution. The Justice Department’s Office of International Affairs provided significant assistance in this matter.
The Defendants:
ROBERTO GUSTAVO CORTES RIPALDA
Age: 54
Madrid, SpainFERNANDO HABERER BERGSON
Age: 48
ArgentinaERNESTO HERACLITO WEISSON PAZMINO
Age: 53
Miami, FloridaE.D.N.Y. Docket No. 21-CR-458 (DG)
Three Operators of Financial Services Firm Charged and Arrested in Alleged $155 Million Investment Fraud SchemeRead the Press Release
A three-count criminal indictment was unsealed yesterday in federal court in the Eastern District of New York charging Roberto Gustavo Cortes Ripalda, 54, of Madrid, Spain; Fernando Haberer Bergson, 48, of Buenos Aires, Argentina; and Ernesto Heraclito Weisson Pazmino, 53, of Miami, Florida, with conspiring to defraud investors and financial institutions as part of an international fraud scheme stretching through the United States, South America, and Europe. The defendants are each charged with conspiracy to commit wire fraud, conspiracy to commit bank fraud, and conspiracy to commit money laundering. Federal agents arrested Weisson in Miami yesterday. Cortes and Haberer were also arrested yesterday in Spain and Argentina, respectively.
According to the indictment, Cortes and Weisson founded Biscayne Capital, a financial services company, in 2005. Between approximately 2013 and 2018, Cortes, Haberer, and Weisson, together with others, orchestrated a scheme to defraud Biscayne Capital clients and financial institutions through a series of material misrepresentations and omissions about, among other things, how Biscayne Capital client funds would be used. The defendants and their co-conspirators used the funds they fraudulently obtained from clients and financial institutions to pay other investors, cover Biscayne Capital expenses, and pay themselves millions of dollars.
The indictment further alleges the defendants and their co-conspirators falsely told some Biscayne Capital clients that the clients’ investments in certain private investment products (referred to in the indictment as “Proprietary Products”) would be used to finance the development of real estate projects, when in fact, the defendants and their co-conspirators used the clients’ investments to pay other Biscayne Capital clients. The indictment also alleges the defendants and their co-conspirators invested certain clients’ money in Proprietary Products without those clients’ knowledge, and then provided those clients with fraudulent account statements that showed fake investments. The defendants and others also conspired to fraudulently induce financial institutions to extend short-term credit to help further the scheme. Haberer then generated fake letters of authorization to repay the banks out of Biscayne Capital clients’ accounts without those clients’ authorization.
By September 2018, the alleged scheme collapsed, and Biscayne Capital went into liquidation, causing more than $155 million in losses to Biscayne Capital clients.
Weisson had an initial court appearance yesterday before U.S. Magistrate Judge Chris M. McAliley of the U.S. District Court for the Southern District of Florida. If convicted of all counts, each defendant faces a maximum penalty of 70 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Jacquelyn M. Kasulis of the Eastern District of New York; Acting Special Agent in Charge Darrell J. Waldon of the IRS-Criminal Investigation (IRS-CI) Washington Field Office; Special Agent in Charge Joleen D. Simpson of the IRS-CI Boston Field Office; and Special Agent in Charge Raymond Villanueva of the Homeland Security Investigations (HSI) Washington Field Office made the announcement.
The IRS-CI Global Illicit Financial Team and HSI are investigating the case.
Trial Attorneys Randall Warden and Shaunik R. Panse of the Justice Department’s Money Laundering and Asset Recovery Section (MLARS); Trial Attorney John (Fritz) Scanlon of the Justice Department’s Fraud Section; and Assistant U.S. Attorneys David Gopstein and Benjamin Weintraub of the U.S. Attorney’s Office for the Eastern District of New York are prosecuting the case.
The Justice Department’s Office of International Affairs provided significant assistance in this case.
MLARS’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Talbot County Cocaine Supplier Sentenced to 10 Years in Federal Prison for Narcotics ChargesRead the Press Release
Baltimore, Maryland – U.S. District Judge Stephanie A. Gallagher sentenced Tavon Dwayne Banks, age 37, of Cambridge, Maryland, to 10 years in federal prison, followed by five years of supervised release, for conspiracy to distribute narcotics and possession with the intent to distribute cocaine and cocaine base.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; and Talbot County Sheriff Joseph Gamble.
According to his guilty plea, during an investigation that began in September 2019, the Talbot County Narcotics Task Force and Homeland Security identified Banks as a multi-ounce cocaine supplier through hundreds of intercepted telecommunications targeted towards a co-conspirator. Banks distributed narcotics throughout Talbot and Dorchester Counties. For example, on June 25, 2020, Banks and a co-conspirator discussed arranging a meeting with a cocaine supplier. Investigators believe that Banks and his co-conspirator combined funds to purchase five ounces of cocaine to refresh their supply.
On July 16, 2020, investigators observed Banks and a co-conspirator meet with an unknown narcotics supplier at a predetermined location to obtain cocaine. Additionally, investigators also observed Banks visiting an Easton, Maryland stash house and conduct suspected drug transactions.
On July 17, 2020, investigators executed a search warrant at Banks’ residence. As a result of the search warrant, investigators recovered $30,100 located under a couch cushion, 196 grams of cocaine, 18.2 grams of crack cocaine, a digital scale, bags with trace amounts of a white powdery substance, and a cell phone.
A forensic examination of the cell phone revealed messages and photos relating to Banks’ distribution of cocaine, including a photo of Banks cooking crack cocaine.
Acting United States Attorney Jonathan F. Lenzner commended HSI, the Talbot County State’s Attorney’s Office, the Dorchester County State’s Attorney’s Office, and the Talbot County Sheriff’s Office for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Kim Y. Oldham, who prosecuted the case.
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South Texas man sentenced for harboring over 200 in inhumane conditionsRead the Press Release
BROWNSVILLE, Texas – A 35-year-old Brownsville resident has been ordered to federal prison for harboring illegal citizens within the United States, announced Acting U.S. Attorney Jennifer B. Lowery.
Santos De Leon-Cardenas pleaded guilty April 29.
Today, U.S. District Judge Ferando Rodriguez Jr. ordered him to serve a 30-month sentence to be immediately followed by three years of supervised release. In handing down the sentence, Judge Rodriguez noted De Leon-Cardenas harbored 57 non-citizens in crowded and unsanitary conditions.
On March 22, authorities arrived at a hotel room in Brownsville believed to be used to harbor undocumented individuals. They conducted surveillance and were eventually able to apprehend De Leon-Cardenas as well as 57 others, two of whom were unaccompanied minors. De Leon-Cardenas hid them in a single one-bedroom hotel room with little ventilation.
De Leon-Cardenas will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Border Patrol and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Cameron County Precinct 2 Constables Office. Assistant U.S. Attorney Edgardo J. Rodriguez prosecuted the case.
South Korean National Pleads Guilty to Federal Criminal Charge for Poaching Wild Succulent Plants for Illegal Exportation to AsiaRead the Press Release
LOS ANGELES – A South Korean national who was extradited from South Africa pleaded guilty today to a federal criminal charge for attempting to illegally export to Asia live Dudleya succulent plants worth more than $600,000 that he and his co-schemers had pulled out of the ground at remote state parks in Northern California.
Byungsu Kim, 46, pleaded guilty to one count of attempting to export plants taken in violation of state law.
According to his plea agreement, on October 11, 2018, Kim and co-defendants Youngin Back, 47, and Bong Jun Kim, 46, traveled by car from Los Angeles International Airport to Crescent City, California. From October 14 to October 16, Kim and the co-defendants harvested numerous Dudleya plants from DeMartin State Beach in Klamath, California, and from Del Norte Coast Redwoods State Park.
Kim admitted he knew the taking of the Dudleya plants was unlawful and that he had conducted internet searches on his smartphone for “poaching succulents” and “dudleya” and had read a press release regarding the arrest and convictions of three other Dudleya poachers.
On October 22, 2018, Kim and the co-defendants traveled from Northern California to a nursery in Vista and unloaded the Dudleya plants that they had poached during the previous week. The following day, the men traveled to Russian Gulch State Park in Mendocino County, where, wearing backpacks and using hand-held radios to communicate, they pulled additional Dudleya plants out of the ground before returning once again to the Vista nursery.
Prior to the plants’ shipment, Byungsu Kim scheduled an inspection with a county agriculture official at the Vista nursery and falsely told her the government-issued certificate necessary for the plants’ exportation should list 1,397 Dudleya plants (259 pounds/117.5 kilograms) for export to South Korea and that the “place of origin” of the plants was San Diego County.
The defendants then transported the plants to a commercial exporter in Compton, to whom Byungsu Kim intended to present the fraudulently obtained certificate so the Dudleya plants could be smuggled to South Korea. When the defendants left, local law enforcement executed a search warrant at the cargo shipping company and found more than 3,000 Dudleya plants in boxes that were labeled “Rush” and “Live Plants.” These were the plants the defendants had pulled out of the ground from public lands in Northern California.
Kim admitted that at the time that he and the co-defendants engaged in the illegal conduct, they did not have a scientific permit nor a federal permit that would allow them to harvest Dudleya plants. He also admitted to being the scheme’s organizer.
Although California law enforcement officials had confiscated Kim’s passport following his arrest on state charges relating to his October 2018 conduct, Kim fraudulently obtained a new South Korean passport in January 2019 by falsely claiming to the South Korean Consulate in Los Angeles that he had lost his passport.
In May 2019, soon after Kim learned of the federal criminal charges pending against him in this case, he and Back fled to Mexico on foot through the Tijuana-San Ysidro border crossing. Using his fraudulently obtained passport, Kim then flew with Back from Mexico to China, and then flew from China to South Korea.
Kim was arrested in South Africa in October 2019 for charges related to a similar scheme in which he illegally collected plants from protected areas in that nation to export to South Korea. Kim pleaded guilty to the criminal charges in South Africa and was extradited to the United States in October 2020. He has remained in federal custody since that time.
United States District Judge George H. Wu has scheduled a January 13, 2022 sentencing hearing, at which time Kim will face a statutory maximum sentence of five years in federal prison.
Bong Jun Kim pleaded guilty in July 2019 to one count of attempting to export plants taken in violation of state law. He served four months in federal custody and was released in October 2019 after Judge Wu imposed a sentence of time served.
Back remains a fugitive.
The California Department of Fish and Wildlife, the United States Fish and Wildlife Service, Homeland Security Investigations, U.S. Customs and Border Protection, San Diego County’s Department of Agriculture, Weights and Measures, the U.S. Department of Agriculture, and the California State Parks investigated this matter. The Justice Department’s Office of International Affairs provided significant assistance in securing the defendant’s extradition from South Africa.
Assistant United States Attorneys Matthew W. O’Brien and Dennis Mitchell of the Environmental and Community Safety Crimes Section are prosecuting this case.
Six indicted on drug chargesRead the Press Release
WHEELING, WEST VIRGINIA - Six Ohio and West Virginia residents are facing drug charges, Acting United States Attorney Randolph J. Bernard announced.
The indictment charges six people with one count of “Conspiracy to Distribute and Possess with Intent to Distribute Cocaine Base, Cocaine Hydrochloride, Methamphetamine, and Heroin” and several other drug charges. The six are accused of working together to sell the drugs in Ohio County, in the Southern District of Ohio and elsewhere from June 2019 to August 2021. Those charged are:
- William Hinton, also known as “Abu Twoseventeen.” 48, of Wheeling, West Virginia
- Jontue Coleman, also known as “J,” 44, of Cleveland, Ohio
- Samantha Frost, 38, of Wheeling, West Virginia
- Myron Henderson, also known as “Charlie,” 40, of Euclid, Ohio
- Kaprice D. Russell, also known as “Kap,” 33, of Steubenville, Ohio
- Melissa Joann Hibbitts, 35, of Wheeling, West Virginia
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, the Belmont County, Ohio, Sheriff’s Office, and the St. Clairsville Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Sioux City Man to a Federal Prison for Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced in federal court in Sioux City, Iowa, on September 8, 2021, to a total of twenty years in prison.
Hugo Arechiga Torres, 40, most recently from Sioux City, Iowa, but formerly from Washington and South Dakota, was sentenced on September 8, 2021, after having pled guilty on February 18, 2021, to conspiracy to distribute methamphetamine. Torres was previously convicted three times in South Dakota for felony drug trafficking offenses, including a federal case in 2014.
At his plea and sentencing hearings, evidence showed that between December 2019 and August 2020, Torres and others distributed at least 15 kilograms of methamphetamine in the Sioux City area, including Sioux Falls, South Dakota. On August 13, 2020, law enforcement used a confidential informant to purchase ten pounds of methamphetamine from Torres. On August 17, 2020, law enforcement used a confidential informant to make a $13,000 drug debt payment to Torres, and obtained another two pounds of methamphetamine from him. Upon his arrest the next day, officers seized $754 from Torres, which was found to include five of the pre-serialized $100 bills provided to Torres, as part of the $13,000 drug debt payment. Torres committed this offense while under terms of federal supervised release for a similar drug trafficking offense in the District of South Dakota.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Torres was sentenced to 210 months’ imprisonment and must serve a seven-year term of supervised release following the imprisonment. Torres committed was also sentenced to 60-months’ imprisonment for violation of his federal supervised release, 30 months of which must be served consecutive to, and 30 months concurrent with, his 210-month sentence. Torres remains in custody of the United States Marshal until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; and the Woodbury County Attorney’s Office, as well as the South Dakota Division of Criminal Investigation and the Sioux Falls Area Drug Task Force.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4067. Follow us on Twitter @USAO_NDIA.
Seven Defendants Arrested in Joint State/Federal Investigation into Myrtle Beach Drug Trafficking ConspiracyRead the Press Release
Myrtle Beach, South Carolina --- Acting United States Attorney M. Rhett Dehart announced today that a joint team of dozens of federal, state, and local law enforcement officers, led by the U.S. Drug Enforcement Administration (DEA), arrested seven individuals who have been indicted in federal court and face charges related to an interstate drug trafficking organization that operated out of Myrtle Beach and Kingstree.
The investigation specifically targeted members of this drug trafficking organization based on sales of large quantities of dangerous drugs, including heroin, methamphetamine, cocaine, and crack cocaine, and use of firearms in furtherance of their drug trafficking crimes.
The following defendants were arrested today and charged in a recently unsealed federal indictment:
- LEROY JUNIOR CUNNINGHAM, a/k/a “Black,” a/k/a “Chris,” 45, of Myrtle Beach, is charged with conspiracy to possess with intent to distribute and distribute 100 grams or more of a mixture or substance containing a detectable amount of heroin, a Schedule I controlled substance, and 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine and 500 grams or more of a mixture or substance containing a detectable amount of cocaine, Schedule II controlled substances. This charge carries a potential penalty of 10 years to Life imprisonment.
- TYRONE BROWN, a/k/a “Chief,” 46, of Myrtle Beach, is charged with conspiracy to possess with intent to distribute and distribute 100 grams or more of a mixture or substance containing a detectable amount of heroin, a Schedule I controlled substance, and 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine and 500 grams or more of a mixture or substance containing a detectable amount of cocaine, Schedule II controlled substances. This charge carries a potential penalty of 10 years to Life imprisonment.
- ALEX LETROY GLOVER, 41, of Conway, is charged with conspiracy to possess with intent to distribute and distribute 100 grams or more of a mixture or substance containing a detectable amount of heroin, a Schedule I controlled substance, and 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance. This charge carries a potential penalty of 5 to 40 years imprisonment.
- TONYA GRANT MITCHELL, 45, of Andrews, is charged with conspiracy to possess with intent to distribute and distribute 500 grams or more of a mixture or substance containing a detectable amount of cocaine, a Schedule II controlled substance. This charge carries a potential penalty of 5 to 40 years imprisonment.
- DERRICK LEE CUNNINGHAM, a/k/a “Ruby Tuby,” 43, of Myrtle Beach, is charged with conspiracy to possess with intent to distribute and distribute a quantity of heroin, a Schedule I controlled substance, 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine and a quantity of cocaine, Schedule II controlled substances. This charge carries a potential penalty of 5 to 40 years imprisonment.
- CAMERON JOHN KAZIMIERCZAK, a/k/a “Cam,” 30, of Myrtle Beach, is charged with conspiracy to possess with intent to distribute and distribute a quantity of methamphetamine and a quantity of cocaine, Schedule II controlled substances. This charge carries a potential penalty of up to 20 years imprisonment.
- MARLIN CARLOS MCKNIGHT, a/k/a “Martin Carlos McKnight,” 46, of Goose Creek, is charged with conspiracy to possess with intent to distribute and distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a quantity of cocaine base (commonly referred to as “crack cocaine”), and a quantity of cocaine, Schedule II controlled substances. This charge carries a potential penalty of 5 to 40 years imprisonment.
Three defendants are still at large, including JAMEL RASHAD SMALL, 32, of Myrtle Beach. Charges against the two other defendants remain sealed at this time.
This investigation is the latest in a series of joint state/federal operations aimed at curbing violent crime and drug overdoses in the Myrtle Beach area. In 2020 and 2021, Operation New Optix resulted in drug charges against 34 defendants, 22 of whom have pled guilty to date. In 2017, Operation Silver Sunset targeted 29 associates of a violent. In 2018, Operation Rise and Shine targeted 33 associates of a related gang. In 2020, Operation Broken Branch targeted 31 members of a drug trafficking organization in the Cedar Branch area of Horry County.
Agents with DEA’s Florence Resident Office quarterbacked this investigation with significant participation from the following agencies: Myrtle Beach Police Department, Horry County Police Department, North Myrtle Beach Department of Public Safety, Florence County Sheriff’s Office, Horry County Sheriff’s Office, South Carolina State Law Enforcement Division (SLED), United States Marshals Service, and the Kingstree Police Department.
“The United States Attorney’s Office continues to vigorously prosecute major drug trafficking organizations, and the charges here speak to those efforts,” said Acting U.S. Attorney DeHart. “I want to thank all our federal and local partners for the countless hours they have spent working to dismantle these organizations across the Myrtle Beach area. They continue to put themselves in harm’s way to make our communities safer.”
“These arrests are a direct result of the dedicated efforts between DEA and its law enforcement partners,” said the Special Agent in Charge of the DEA Atlanta Field Division Robert J. Murphy. “Heroin, methamphetamine, cocaine and crack are dangerous drugs that pose a clear and present danger to any community. The Myrtle Beach area is safer today because these poly-drug traffickers have been removed from the streets.”
“Today is another example of what can be accomplished using the outstanding partnerships between federal, state, and local law enforcement,” said Chief Amy Prock of the Myrtle Beach Police Department. “The dedication displayed by these officers and agents, along with the support we receive from our community members, shows the continued commitment we all have in addressing the behaviors of those who wish to cause harm in our community.”
Special Assistant United States Attorney Ryan Waller who works jointly with the 15th Circuit Solicitor’s Office and Assistant United States Attorney Everett McMillian, Lead Task Force Attorney for the Organized Crime Drug Enforcement Task Force (OCDETF), are prosecuting the case.
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.
Acting U.S. Attorney DeHart stated that all charges against these defendants are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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San Diego Man Indicted for Interstate Domestic Violence After Allegedly Murdering BoyfriendRead the Press Release
A San Diego man who allegedly murdered his boyfriend in Hale County, Texas is now facing a federal interstate domestic violence charge, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
On Wednesday, a federal grand jury returned a one-count indictment against 23-year-old Alexander Yoichui Duberek, changing interstate domestic violence. Mr. Duberek, wo is currently in state custody on a related murder charge, is expected to make his initial appearance in federal court next week.
According to the indictment, Mr. Duberek allegedly traveled across state lines with intent to kill his dating partner, identified in court documents as “John Doe,” on Oct. 31, 2020.
The state alleges that Mr. Duberek then stabbed to death his 30-year-old boyfriend, whose body was later found on the side of FM 400 the following day.
An indictment is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Duberek is presumed innocent until proven guilty.
If convicted of the federal charges, he faces a sentence of up to life in federal prison.
The Texas Rangers and the Hale County Sheriff’s Office conducted the investigation with the assistance of the Texas Department of Public Safety and the Federal Bureau of Investigation’s Dallas Field Office. Assistant U.S. Attorney Callie Woolam is prosecuting the case.
Rocky Mount Man Sentenced to 10 Years for Federal Firearms ViolationsRead the Press Release
RALEIGH, N.C. – A Rocky Mount man was sentenced to 120 months in prison for stealing ammunition and firearms in Elm City, North Carolina. Cecil Terrance Reams, 48, entered his guilty plea on June 8, 2021.
According to court documents and other information presented in court, Reams, his co-defendant, Brandon Shane Reams, 42, and another male subject, broke into a residence in Elm City, North Carolina, in the early morning hours of August 29, 2018. The Wilson County Sheriff’s Office responded to the scene and determined the group stole three rifles, an undetermined amount of ammunition, and a television from the property. Following the break-in, Cecil and Brandon Reams sold one of the stolen rifles to a convicted felon in Rocky Mount, North Carolina. Officers with the Rocky Mount Police Department recovered the stolen rifle after executing a search warrant at the buyer’s residence pursuant to a separate investigation. At the time of the break-in, Cecil and Brandon Reams were both convicted felons serving active state probation sentences and were required to wear ankle monitors as a condition of their probation. Officers reviewed both subjects’ ankle monitor movements, which showed both men at the Elm City property at the time of the break-in. Reams was arrested on state charges on August 29, 2018 and moved into federal custody on September 24, 2019.
Brandon Reams was sentenced to 60 months in prison on August 4, 2021.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Wilson County Sheriff’s Office, the Rocky Mount Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case and Assistant U.S. Attorney Aakash Singh prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-CR-327-D.
Rochester Man Going to Prison for Selling FentanylRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jerry Figueroa, 27, of Rochester, NY, who was convicted of conspiring to possess with intent to distribute, and distributing, 40 grams or more of fentanyl, was sentenced to serve 18 months in prison by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Cassie Kocher, who handled the case, stated that the defendant was arrested following an investigation into a drug trafficking organization responsible for distributing controlled substances in the area of Wilkins Street in Rochester. Between April and November 28, 2018, Figueroa supplied the organization with controlled substances so that they could be packaged for sale and sold on Wilkins Street. The defendant utilized different cellular telephone numbers to communicate with co-conspirators.
The sentencing is the result of an investigation by New York State Police, under the direction of Major Barry Chase; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. DeVito, New York Field Division; and the Monroe County District Attorney’s Office, under the direction District Attorney Sandra Doorley.
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Repeat Offender Sentenced to Mandatory Federal Prison Term for Drug TraffickingRead the Press Release
Miami, Florida – A federal district judge in West Palm Beach sentenced 42-year-old Clarence G. Kelley, III, a/k/a “Kemp,” of Lake Worth, Florida, to a mandatory term of 5 years in prison for possessing with the intent to distribute more than a kilogram of cocaine.
In March of 2021, law enforcement began investigating Kelley for his involvement in a drug-trafficking operation. As a result of the investigation, law enforcement executed State of Florida warrants at two Lake Worth residences on April 21, 2021. At the residence where Kelley and his girlfriend were found, law enforcement discovered items to include 1,470 grams of cocaine in the garage and a Gucci bag in the bedroom containing Kelley’s driver’s license and approximately $18,000. Kelley admitted that he had purchased the cocaine and sold approximately nine ounces before his arrest. Law enforcement located items to include kilogram presses, grinders, blenders and residue at the second residence, which was used by Kelley to divide the cocaine for sale. Kelley was previously convicted and sentenced federally for distributing crack cocaine.
In June 2021, Kelley pled guilty in West Palm Beach federal court to the sole count of the indictment, which charged the defendant with possession with the intent to distribute 500 grams or more of cocaine. As part of his plea, Kelley agreed to forfeit $19,324.00 to the United States of America.
Juan Antonio Gonzalez, Acting United States Attorney for the Southern District of Florida, La Verne J. Hibbert, Special Agent in Charge, Drug Enforcement Administration, Miami Field Division, and Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, made the announcement.
DEA’s West Palm Beach District Office and the Palm Beach County Sheriff’s Office investigated the case. Assistant United States Attorney Sarah J. Schall prosecuted this case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 21-CR-80075.
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Rensselaer County Man Charged with Pandemic-Related Unemployment FraudRead the Press Release
ALBANY, NEW YORK – Hector J. Sanchez, age 29, of Rensselaer, New York, was arrested today on an indictment charging him with six counts of mail fraud and three counts of aggravated identity theft related to filing for, and receiving more than $80,000 in benefits from, false unemployment insurance claims. The alleged false claims exploited federal programs intended to aid out-of-work New Yorkers during the COVID-19 pandemic.
The announcement was made by Acting United States Attorney Antoinette T. Bacon; Joshua McCallister, Acting Inspector in Charge of the Boston Division of the United States Postal Inspection Service (USPIS); Jonathan Mellone, Special Agent in Charge, New York Region, U.S. Department of Labor, Office of Inspector General (USDOL-OIG); and Matthew Scarpino, Acting Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
The indictment alleges that from August to November 2020, Sanchez engaged in a fraud scheme to obtain the personal identifying information of other individuals, including via social media, and file false unemployment insurance applications in their names with the New York State Department of Labor (NYSDOL). The indictment further alleges that he used debit cards linked to the false claims in order to obtain cash, goods, and services. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Sanchez appeared today before United States Magistrate Judge Daniel J. Stewart and was ordered detained pending a detention hearing for September 14.
The mail fraud charges carry a maximum term of 20 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. The charges for aggravated identity theft carry a mandatory term of two years in prison, to be imposed consecutive to any other term of imprisonment. 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.
The case is being investigated by USPIS, USDOL-OIG, and HSI, with assistance from the NYSDOL Office of Special Investigations and the Albany Police Department. The case is being prosecuted by Assistant U.S. Attorney John T. Chisholm.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Red Lake Felon Pleads Guilty to Possession of a Firearm, Possession with Intent to Distribute Methamphetamine and FentanylRead the Press Release
ST. PAUL, Minn. – A Red Lake man pleaded guilty today to illegally possessing a firearm as a felon and possessing with the intent to distribute methamphetamine and fentanyl, announced Acting U.S. Attorney W. Anders Folk.
According to court documents, on November 21, 2020, Joshua Jon Lussier, 34, was arrested in Hubbard County, Minnesota, pursuant to a federal arrest warrant. In Lussier’s vehicle, law enforcement observed in plain sight a glass smoking device commonly used for methamphetamine and approximately ten grams of methamphetamine. A subsequent search of the vehicle revealed 893 grams of methamphetamine, 83 grams of fentanyl, and drug distribution paraphernalia, including common cutting agents used to increase the total weight amount of controlled substances. Lussier admitted that the drugs in his vehicle belonged to him and were intended for distribution.
In April 2019, Lussier was found in possession of a Remington .243 caliber, Model 770 rifle. Because he has a prior felony conviction in Pennington County, Lussier is prohibited from possessing firearms or ammunition at any time.
This case is the result of investigations conducted by the Red Lake Department of Public Safety and the FBI Paul Bunyan Drug Task Force.
Assistant U.S. Attorney Evan B. Gilead is prosecuting the case.
Raleigh Investment Advisor’s 40 Year Sentence for Ponzi Scheme and Obstruction Affirmed on AppealRead the Press Release
RALEIGH, N.C. – Stephen Condon Peters, a former Raleigh investment advisor and owner of Visionquest Wealth Management, lost his appeal today in a per curiam opinion issued by the United States Court of Appeals for the Fourth Circuit. The judgment against Peters, which included a 40-year prison sentence, $15,063,624.30 in restitution, and forfeiture of assets, was fully affirmed.
Acting United States Attorney G. Norman Acker, III stated, “For years now, the many victims of former investment advisor Stephen Peters have been holding their breath, waiting for any kind of news about the outcome of his appeal, so that they can move on with their lives. Today I am pleased to report that the appeal is over. There were no dissenting votes. Stephen Peters will serve the 40 years imposed upon him. With this result, this office can now resume its efforts to liquidate assets and return them to victims as quickly as possible.”
Peters was convicted on all charges against him in a week-long trial in 2019. The evidence showed that Peters, in his role as a Registered Investment Advisor, defrauded his numerous clients by steering them into investments in which Peters had a direct financial interest. He then compounded his crimes by attempting to defraud the SEC with false documents and statements. At sentencing, the judge commented that Peters’s crimes were “breathtaking,” but were proven with a “tsunami of evidence.” In issuing its 40-year sentence, the Court also noted that Peters “quadrupled down” on the crime by, among other things, perjuring himself at trial.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina, made the announcement following the issuance of the judgment and opinion by the appellate court. The Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation investigated the case. Special Assistant U.S. Attorney Banumathi Rangarajan represented the United States on the appeal. Assistant United States Attorney William M. Gilmore served as the prosecutor. Assistant U.S. Attorney John Harris represented the United States with respect to forfeiture aspects of the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:17-cr-00411-D-1.
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Pittsburgh man offers guilty plea to bank fraud, fabricating letter from former Secretary of State in his favorRead the Press Release
COLUMBUS, Ohio – A Pittsburgh man pleaded guilty in federal court today to crimes related to stealing customers’ information and money from the banks at which he was employed. The defendant also submitted a fake letter to the Court purportedly from former Secretary of State and retired four-star general Colin Powell in support of a lenient sentence for the defendant.
Keith D. O’Kelly, 51, offered a guilty plea in U.S. District Court today to bank fraud and using a false document.
According to his plea document, in 2017 and 2018, O’Kelly gained employment at various banks and used the Social Security number of another individual while applying for employment.
Once employed at the banks, O’Kelly accessed and obtained the banking information of multiple customers to initiate unauthorized payments and transactions for his own financial benefit. For example, in December 2017, while employed as a bank manager, O’Kelly used the information of two bank customers to pay $10,000 toward his own personal credit account.
In January 2020, while on pretrial release, O’Kelly applied for employment at another bank and once again falsely represented a Social Security number as his own.
In March 2021, O’Kelly submitted a fraudulent letter to the Court in relation to a contemplated sentence for his bank fraud conduct. The letter was purportedly from former Secretary of State Colin Powell and recounted a personal story and support in favor of a lenient sentence for O’Kelly. When the United States asked for a point of contact to authenticate the letter, O’Kelly purchased a new phone and provided the number to the government. The government called the number and received a call back from a person claiming to be Powell’s personal assistant of 12 years. The caller said Powell dictated the letter for him to send to O’Kelly. O’Kelly admitted to fabricating the letter and being the caller.
Bank fraud is a federal crime punishable by up to 30 years in prison. Using a false document carries a potential sentence of up to five years in prison. Congress sets the minimum and maximum statutory sentences. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio, and Dan Leeper, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the plea offered today before U.S. Magistrate Judge Norah McCann King. Assistant United States Attorney Brenda S. Shoemaker and Special Assistant United States Attorney Christopher N. St. Pierre are representing the United States in this case.
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Pittsburgh Man Sentenced to Prison for Social Security Fraud and Failing to File Tax ReturnsRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania has been sentenced in federal court to six months in prison followed by two years of supervised release on his conviction of theft of government funds and willful failure to file tax returns, Acting United States Attorney Stephen R. Kaufman announced today.
Chief United States District Judge Mark R. Hornak imposed the sentence on Louis Impell, 58, of Pittsburgh, PA 15210.
According to information presented to the court, Impell filed an application for Social Security benefits falsely claiming that he was disabled and had no income. In reality, however, Impell operated a successful home improvement company and was not disabled. As a result of the fraudulent application, from August 2009 through June 2018, Impell was the recipient of $72,186.78 in Title XVI, Supplemental Security Income benefits to which he was not entitled. Additionally, for the calendar years 2015, 2016, and 2017, Impell failed to file income tax returns that would have disclosed his business income to the IRS. The tax due on his business income was $21,805.
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 and the Social Security Administration, Office of Inspector General for the investigation leading to the successful prosecution of Impell.
Pinellas Man Sentenced to More Than Four Years in Federal Prison for Dealing Drugs and Violating Supervised ReleaseRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew has sentenced Cedric Tonesy Mount (48, St. Petersburg) to 33 months in federal prison for possessing with the intent to distribute controlled substances, and 24 months in prison for violating supervised release. The Court ordered the sentences to be served consecutively. Mount was also ordered to serve an additional 6 years of supervised release.
Mount had pleaded guilty on June 2, 2021.
According to court documents, on January 9, 2019, Mount began a three-year term of supervised release after serving a federal prison sentence for distribution of cocaine. On January 26, 2020, officers from the St. Petersburg Police Department responded to an apartment complex to investigate complaints that Mount was selling drugs from a vehicle parked near the apartments. As officers approached Mount’s vehicle, another individual yelled, “Look out! Police!” Officers saw Mount holding a small box with a plastic baggie sticking out of it. Officers searched Mount, the small box, and the vehicle and found several plastic baggies containing various substances. Subsequent testing determined that the substances in the baggies contained crack cocaine, cocaine, heroin, fentanyl, methamphetamine, and marijuana. The officers also recovered two scales and a gas mask that had been converted into a marijuana bong from inside the vehicle.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the St. Petersburg Police Department, and the Pinellas County Forensic Laboratory. It was prosecuted by Assistant United States Attorney Michael Sinacore.
Philadelphia Woman Admits $100 Million Securities Fraud SchemeRead the Press Release
NEWARK, N.J. – An investment fund manager today admitted orchestrating a $100 million securities fraud scheme, Acting U.S. Attorney Rachael A. Honig announced.
Brenda Smith, 61, of Philadelphia, pleaded guilty by videoconference before U.S. District Judge Madeline Cox Arleo to Count Seven of an indictment charging her with securities fraud.
According to documents filed in this case and statements made in court:
Smith managed and controlled Broad Reach Capital LP, a pooled investment fund/hedge fund that was established in February 2016 and was open to accredited investors with a minimum investment of $1 million.
From February 2016 through August 2019, Smith orchestrated a scheme in which she made misrepresentations to investors and promised that she would invest their funds in particular trading strategies that Broad Reach Capital was allegedly optimally situated to execute. Smith referred to these strategies as dividend capture, VIX Convergence, and opportunistic trading.
Smith misrepresented the success and performance of Broad Reach Capital to investors and prospective investors. She touted Broad Reach Capital as a trade-focused investment fund that was highly liquid and employed a robust risk management program. Smith distributed written materials about Broad Reach Capital to investors and prospective investors that included purported historical performance information, such as claimed annual returns of over 33 percent in 2017 and positive monthly returns in 2018. In fact, the total cash and securities in the Broad Reach Capital bank and brokerage accounts decreased from approximately December 2016 through June 2019. For example, the written materials claimed that Broad Reach Capital had a 1.76 percent return in February 2018 when in reality, Broad Reach Capital’s brokerage accounts lost approximately 50 percent of their value.
To lull investors and induce them to continue investing, Smith provided monthly account statements to investors that falsely showed that their investments were safe and earning significant returns. Smith also falsely represented that she was personally invested in Broad Reach Capital and provided a fictitious account statement to at least one investor.
Over the course of the scheme, Smith collected more than $100 million of cash into Broad Reach Capital from approximately 40 investors. At its peak, however, the value of cash and securities in the Broad Reach Capital bank and brokerage accounts did not exceed approximately $32 million. Instead of investing the money as she promised, Smith transferred tens of millions of dollars out of Broad Reach Capital to entities she controlled for purposes inconsistent with the trading strategies, including more than approximately $10 million for mineral mining operations and approximately $2 million for American Express credit card bills. When investors requested redemption of their investments, Smith diverted other investors’ funds to pay the requested redemption amounts.
The securities fraud count to which Smith pleaded guilty carries a maximum penalty of 20 years in prison and a $5 million fine. Sentencing is scheduled for Jan. 20, 2022.
The U.S. Securities and Exchange Commission (SEC) Philadelphia Regional Office previously filed a civil complaint against Smith based on the same conduct.
Acting U.S. Attorney Honig credited special agents of the FBI Philadelphia Division, under the direction of Acting Special Agent in Charge Bradley S. Benavides, and special agents of the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney, with the investigation leading to today’s sentencing. She also thanked the U.S. Securities and Exchange Commission’s Philadelphia Regional Office, under the direction of Co-Acting Regional Directors Scott Thompson and Joy G. Thompson, for its assistance.
The government is represented by Catherine R. Murphy, Chief of the Economic Crimes Unit of the U.S. Attorney’s Office.
Pekin Ice Methamphetamine Dealer Sentenced to Twenty Years in PrisonRead the Press Release
PEORIA, Ill. –Harold Shane Koch, 42, of Pekin, Illinois, was sentenced today to 20 years in federal prison, to be followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute ice methamphetamine.
Koch, who pleaded guilty on the same day he was sentenced, admitted that he conspired with others to buy and resell methamphetamine throughout the Pekin and Peoria areas for at least a six-month period from August 2019 until his arrest in February 2020. Evidence presented in court showed that Koch sold ice methamphetamine to a police informant on at least two occasions and was also found with ice methamphetamine packaged for resale at the time of his arrest.
At the joint change-of-plea and sentencing hearing, the government stated that the investigation of Koch's criminal activity had revealed that Koch's methamphetamine trafficking dated back to 2018 and involved over seven kilos of ice methamphetamine. The ice methamphetamine specifically seized from Koch during the investigation was determined to have at least 99% purity levels.
During sentencing, U.S. District Court Judge Joe Billy McDade noted that Koch had a stable upbringing and several successful stints in drug treatment in the past. Judge McDade emphasized his hope that Koch would turn his life around after this conviction.
“The high-purity methamphetamine we are seeing in the Central District of Illinois is cheap, highly potent, and readily available,” said Acting U.S. Attorney Douglas J. Quivey. “It’s a drug that can bring out the absolute worst in people, its addictive qualities make it difficult to quit, and it wreaks havoc in our communities. Our office will continue to work with law enforcement to steadily target the drug dealers who peddle this highly addictive substance to users.”
Koch has remained in the custody of the U.S. Marshals since his arrest. The Drug Enforcement Administration and Pekin Police Department investigated the case. Assistant U.S. Attorney Katherine Legge represented the government in the prosecution.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF)’s National Methamphetamine Strategic Initiative, spearheaded locally out of the Pekin Police Department. The primary goal of this initiative is to address methamphetamine trafficking and its attendant consequences by using a coordinated, multi-agency approach targeting the highest levels of drug trafficking leadership. 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.
Owner of cockfighting venue sentenced to prison for running illegal animal fighting operationRead the Press Release
AUGUSTA, GA: A Lincoln County man has been sentenced to prison after admitting that he operated a cockfighting venue.
Lanier Augustus Hightower Jr., 65, of Lincolnton, Ga., was sentenced to 14 months in prison after pleading guilty to Sponsoring and Exhibiting an Animal in an Animal Fighting Venture, said Acting U.S. Attorney David H. Estes. U.S. District Court Chief Judge J. Randal Hall also ordered Hightower to pay a fine of $500, prohibited him from owning or keeping any birds or fowl or attending any events related to birds or cockfighting, and to serve two years of supervised release after completion of his prison term. There is no parole in the federal system.
“This sentence sends a strong message that animal fighting will not be tolerated in the Southern District of Georgia,” said Acting U.S. Attorney Estes. “In coordination with our law enforcement partners, we will target and eliminate these barbaric operations and hold the organizers and participants accountable.”
As described in court documents and testimony, Hightower worked with others in sponsoring a Dec. 14, 2019 cockfight on his farm in Lincoln County. The federal indictment in that case named Hightower and 38 codefendants and remained sealed until June 2020 when multiple law enforcement agencies, led by the U.S. Department of Agriculture Office of the Inspector General, raided the cockfighting venue called Little Sunset in Midville, Ga., operated by William Shannon Scott, 48. Scott operated his venture on alternating weekend schedules with another venue called The Red Barn, owned by Wendell Allan Strickland, 67, of Swainsboro, Ga.,
Scott and Strickland both have pled guilty to charges related to the cockfighting ventures and await sentencing in U.S. District Court.
As part of his plea agreement, Hightower will forfeit to the U.S. Government the 100.04 acres of land in Lincoln County where the cockfights were held. Both Scott and Strickland also face forfeiture of their farms as part of their sentences.
“The brutal practice of watching animals mutilate each other to death holds no entertainment value and will not be tolerated,” said Jason Williams, Special Agent in Charge, USDA-OIG. “This prosecution should serve as notice that our agency, in conjunction with our state and federal partners, will hold these individuals accountable for their interest in this heinous blood sport.”
Chief Judge Hall ordered Hightower to report to prison Nov. 8.
The cases are being investigated by the USDA-OIG and prosecuted for the United States by Assistant U.S. Attorney Xavier A. Cunningham and Special Assistant U.S. Attorney Jessica Rock.
Owner of Long Island Commercial Check Cashing Companies Pleads Guilty to Financial FraudRead the Press Release
Earlier today, in federal court in Central Islip, John Drago, the former owner/operator of several check cashing businesses on Long Island, pleaded guilty to illegally structuring financial transactions and payroll tax evasion. The proceeding took place before United States District Judge Gary R. Brown. When sentenced, Drago faces up to 10 years in prison, has agreed to forfeit approximately $253,000 and to pay restitution of approximately $593,000. As part of his plea, Drago is required to surrender his check cashing licenses, his federal money services business registrations and he is barred from applying for any such licenses or registrations in the future.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, and Thomas Fattorusso, Acting Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI), and Shirin Emami, Acting Superintendent, New York State Department of Financial Services (DFS), announced the guilty plea.
“Drago’s guilty plea makes clear that running a check cashing business is not a license to evade financial reports to cheat the IRS or a blank check for committing fraud,” stated Acting United States Attorney Kasulis. “This Office will prosecute and hold to account defendants like Drago who, under the guise of running a legitimate business, are actually engaging in egregious schemes to avoid paying taxes.”
“Drago’s plea today acknowledges his egregious misuse of Kayla Companies as a conduit to circumvent mandatory CTR filing requirements and evade employment taxes of Kayla Company employees. Greedy tax evasion schemes such as those facilitated by Drago, critically impair the integrity of our financial system and directly impact employees, who may see future benefits such as Social Security, Medicare or Unemployment Compensation reduced or eliminated because of Drago’s willful disregard of the law. IRS Criminal Investigation works tirelessly to protect the American taxpayer and maintain public confidence in our system of taxation,” stated IRS-CI Acting Special Agent-in-Charge Fattorusso.
“John Drago breached the public trust by using his licensed check-cashing businesses to engage in illegal structuring transactions,” said Shirin Emami, Acting Superintendent of Financial Services. “DFS applauds the Eastern District of New York’s prosecution and is pleased to have been able to coordinate with the EDNY on this matter.”
According to court filings and facts presented at the plea proceeding, Drago owned and operated check cashing businesses on Long Island, including Kayla Check Cashing Corp., North Island Check Cashing Corp., South Island Check Cashing Corp., East Island Check Cashing Corp., Bay Shore Check Cashing Corp. and Brentwood Check Cashing Corp. (collectively, the “Kayla Companies”). Financial institutions are required to file a Currency Transaction Report (“CTR”) for each cash transaction in excess of $10,000. In addition, a CTR is required to be filed by the financial institution when multiple checks, the total value of which exceeds $10,000, are cashed in a single day.
From January 2010 to October 31, 2013, Drago instructed employees to cash multiple checks in excess of $10,000 in a single day for certain customers without filing required CTRs. In addition, to avoid the required CTR filings, Drago directed employees to deposit and cash checks that had been submitted together on a single day in amounts in excess of $10,000. Drago also instructed employees to tell certain customers who presented individual checks in amounts exceeding $10,000 to return with multiple checks in amounts that were less than $10,000 to avoid the reporting requirement for such financial transactions. As a result of Drago’s scheme, more than $9.5 million in check cashing transactions were concealed from the IRS.
Between April 1, 2012 and July 31, 2013, Drago paid overtime wages and commissions to employees of the Kayla Companies in cash and failed to inform the IRS of the payment of these cash wages. Drago falsely underreported to the IRS the gross wages paid to his employees to avoid paying the full amount of Federal Insurance Contribution Act taxes that the Kayla Companies owed.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Burton T. Ryan, Jr., Bradley T. King and Madeline O’Connor are in charge of the prosecution.
The Defendant:
JOHN DRAGO
Age: 57
Central Islip, New YorkE.D.N.Y. Docket No. 18-CR-394 (S-1) (GRB)
Okmulgee County Inmate Pleads Guilty to Rioting in Federal Detention FacilityRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jason Don Rowan, 38, entered a guilty plea on August 31, 2021, to Rioting in a Federal Detention Facility, 18 U.S.C. §§ 1792, 2, punishable by imprisonment for a period of up to 10 years and/or a fine of up to $250,000.00, supervised release of not more than 3 years, and a special assessment fee in the amount of $100.00.
The Indictment alleged that on or about April 12, 2021, an FBI Task Force Officer (TFO) received a report of a disturbance in the X-Pod at the Okmulgee County Jail. The X-Pod houses Federal inmates in accordance with a contract between the U.S. Marshals Service and the Okmulgee County Criminal Justice Authority. Upon arrival, the TFO was informed the disturbance had been ongoing and had escalated into a riot situation. When additional law enforcement arrived, a team was formed to enter the pod and restore order. As the officers entered the pod, a group of inmates begin throwing pieces of concrete at the officers, which included three federal law enforcement officers. The riot lasted approximately two and one-half hours before order was restored, and a total of nine inmates (including Rowan) were charged with federal offenses.
The charges arose from an investigation by the United States Department of Homeland Security Investigations, the United States Marshals Service, the Federal Bureau of Investigation, the Okmulgee County Sheriff’s Office, the Okmulgee Police Department, the Okmulgee County Jail, and the Henryetta Police Department.
The Honorable Steven Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Ohio man indicted on drug chargesRead the Press Release
WHEELING, WEST VIRGINIA – Robert L. Bruce, of Groveport, Ohio, is facing drug charges, Acting United States Attorney Randolph J. Bernard announced.
Bruce, also known as “Miami,” 41, was indicted this week on one count of “Distribution of Methamphetamine” and one count of “Possession with Intent to Distribute Methamphetamine.” Bruce is accused of distributing methamphetamine in July and August 2021 in Marshall County.
Bruce faces up to 20 years of incarceration and a fine of up to $1,000,000 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.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Marshall County Drug Task Force, a HIDTA-funded initiative, investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Ohio man indicted on drug chargesRead the Press Release
WHEELING, WEST VIRGINIA – LaShawn Royce Nickelson, of Newark, Ohio, is facing drug and firearms charges, Acting United States Attorney Randolph J. Bernard announced.
Nickelson, 49, was indicted this week on one count of “Conspiracy to Distribute and Possess with the Intent to Distribute Cocaine Base, Cocaine Hydrochloride, Heroin, and Fentanyl,” one count of “Distribution of Cocaine Base within 1000 feet of a Protected Location,” one count of “Aiding and Abetting the Distribution of Cocaine Base,” one count of “Possession with Intent to Distribute Heroin,” one count of “Possession with Intent to Distribute Fentanyl,” one count of “Possession with Intent to Distribute Cocaine Hydrochloride,” one count of “Possession with Intent to Distribute Cocaine Base,” and one count of “Unlawful Possession of a Firearm.” “Nickelson is accused of distributing cocaine base, cocaine hydrochloride, heroin and fentanyl in Ohio County in September and October 2020. Nickelson, a person prohibited from having a firearm because of a prior conviction, is also accused of having a 9mm pistol in October 2020.
Nickelson faces up to 20 years of incarceration and a fine of up to $1,000,000 for each drug count, faces at least one year and up to 40 years of incarceration and fine of up to $2,000,000 for the distribution near a protected location charge, and faces up to 10 years of incarceration and a fine of up to $250,000 for the firearms charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Ohio County man admits to drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Travis E. Vossen, of Wheeling, West Virginia, has admitted to a drug charge, Acting United States Attorney Randolph J. Bernard announced.
Vossen, 32, pleaded guilty today to one count of “Distribution of Fentanyl within 1,000 feet of a Protected Location.” Vossen admitted to selling fentanyl near Ritchie Elementary School in Ohio County in May 2021.
Vossen faces at least one year and up to 40 years of incarceration and fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Clayton J. Reid is prosecuting the case on behalf of the government. The Marshall County Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James P. Mazzone presided.
New York Man Sentenced for Controlled Substance OffenseRead the Press Release
BOSTON – A Bronx, N.Y. man was sentenced today in connection with his role in a conspiracy to distribute a fentanyl in 2019.
Jason Jimenez, 27, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to one year and one day in prison and three years of supervised release. On May 4, 2021, Jimenez pleaded guilty to one count of use of a communication facility to commit a felony under the controlled substances act.
On July 10, 2019, Jimenez was arrested after making admissions to investigators in connection with a fentanyl transaction which he facilitated using his phone. He was indicted in August 2019 as part of a coordinated enforcement operation in the Merrimack Valley dubbed “Operation Devil’s Highway.” The operation targeted the distribution of opioids, including fentanyl and heroin, and resulted in charges against a total of 40 people for federal drug offenses, with at least a dozen more individuals facing state charges.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Valuable assistance was provided by the Lawrence Police Department and North Andover Police Department. Assistant U.S. Attorneys Timothy Moran and Evan Panich of Mendell’s Office prosecuted the case.
New Jersey Men Admit to Drug Distribution ChargesRead the Press Release
NEWARK, N.J. – Two New Jersey men admitted to drug distribution charges in connection conspiring to distribute cocaine base and distributing fentanyl and cocaine base, Acting U.S. Attorney Rachael A. Honig announced today.
Tyrell Wilson, aka “Hell Rell,” 36, of Rahway, New Jersey, pleaded guilty today before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with one count of conspiracy to distribute 280 grams or more of cocaine base and one count of possession with intent to distribute 280 grams or more of cocaine base.
Marvin Lagrier, aka “Black Jesus,” 39, of Newark, pleaded guilty before Judge Arleo on Aug. 12, 2021, to a superseding information charging him with one count of possession with intent to distribute 40 grams or more of fentanyl. Lagrier was a Newark Housing Authority employee at the time of his arrest.
In September 2019, Lagrier and Wilson were charged in a federal criminal complaint with conspiracy to distribute heroin and cocaine and possession with the intent to distribute heroin and cocaine base. Wilson was also charged with possession of a firearm by a convicted felon. Lagrier was indicted on these charges in October 2019.
According to documents filed in this case and statements made in court:
On Sept. 19, 2019, law enforcement officers approached an apartment in Essex County, New Jersey, to execute a court-authorized search warrant. Wilson and Lagrier exited the apartment and attempted to flee the area but were apprehended and placed under arrest. Upon searching the apartment, as well as Wilson’s vehicle and a backpack that Wilson discarded while fleeing, law enforcement officers recovered a large amount of cocaine base, heroin, and fentanyl as well as many items of drug paraphernalia for packaging narcotics. Law enforcement officers also recovered a firearm and several rounds of ammunition as well as several cellular phones. They also recovered several brown Newark Housing Authority uniforms bearing the name tag, “Marvin,” which matched the uniform that Lagrier wore at the time of his arrest.
The cocaine base conspiracy count to which Wilson pleaded guilty carries a statutory mandatory minimum term of imprisonment of 10 years, a maximum potential penalty of life in prison, and a maximum fine of $10 million. The fentanyl possession count to which Lagrier pleaded guilty carries a statutory mandatory minimum term of imprisonment of five years, a maximum potential penalty of 40 years in prison, and a maximum fine of $5 million. Sentencing is scheduled for Dec. 16, 2021 for Lagrier and for Jan. 13, 2021, for Wilson.
Acting U.S. Attorney Honig credited special agents of the DEA, under the direction of Special Agent in Charge Susan A. Gibson in Newark, and members of the Newark Police Department, under the direction of Public Safety Director Brian O’Hara, with the investigation leading to the guilty pleas.
This case is part of the Violent Crime Initiative (VCI), which was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, N.J. State Parole, Union County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, N.J. Department of Corrections, the East Orange Police Department, the Orange Police Department and the Irvington Police Department.
The government is represented by Assistant U.S. Attorney Tracey Agnew and Special Assistant U.S. Attorney Kendall Randolph of the U.S. Attorney’s Office Organized Crime/Gang Unit in Newark.
Native New Yorker convicted in human transporting conspiracyRead the Press Release
LAREDO, Texas – A 53-year-old man has entered a guilty plea to conspiring to transport people unlawfully in the country, announced Acting U.S. Attorney Jennifer B. Lowery
Carl Bernstein, Plainview, New York, admitted to his role in the transportation of 42 undocumented individuals in a commercial trailer out of Laredo to a northern U.S. location.
On June 6, 2021, local authorities stopped Bernstein for a traffic violation as he was driving a tractor-trailer on State Highway 16 near Tilden. They took him into custody upon learning of active arrest warrants.
He exited the tractor, at which time authorities opened the doors and noticed multiple people inside the trailer. All were identified as non-U.S. citizens unlawfully in the country.
Bernstein admitted he expected to be paid for driving the vehicle.
“This case was just good work by law enforcement boots on the ground from beginning to end - with great cooperation and coordination at the local and federal levels,” said sheriff Emmet Shelton of the McMullen County Sheriff’s Office (MCSO). “This is how it is supposed to work. We would like to thank and recognize our federal partners for their support, work and dedication to helping keep Texas safe.”
U.S. District Judge Marina Garcia Marmolejo set sentencing for Dec. 7. At that time, Bernstein faces up to 10 years in federal prison and a possible $250,000 maximum fine.
He has been and will remain in custody pending that hearing.
MCSO conducted the investigation along with Immigration and Customs Enforcement’s Homeland Security Investigations and Border Patrol. Assistant U.S. Attorney Brian Bajew is prosecuting the case.
Morgantown man sentenced for role in a drug trafficking operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Kenneth Burns, of Morgantown, West Virginia, was sentenced today to 13 months of incarceration for his role in a drug trafficking conspiracy, Acting United States Attorney Randolph J. Bernard announced.
Burns, 35, pled guilty in May 2021 to one count of “Unlawful Use of Communication Facility.” Burns admitted to using a phone to help sell fentanyl, cocaine base, and heroin in March 2020 in Monongalia County.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Drug Enforcement Administration, the Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Monongalia County Sheriff’s Office investigated.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Senior U.S. District Judge Irene M. Keeley presided.
Related press release: https://www.justice.gov/usao-ndwv/pr/seventeen-people-charged-heroin-and-crack-cocaine-distribution-operation
Missouri Man Indicted for Bank Robbery in KansasRead the Press Release
KANSAS CITY, KAN. – A federal grand jury in Kansas City, Kansas, returned an indictment charging a man from Kansas City, Missouri, with one count of bank robbery.
According to the criminal complaint preceding the indictment, on Aug. 2, 2021, Broderick Burr, 47, allegedly presented a note demanding money and indicating he had a gun to an employee at Commerce Bank on West 43rd Avenue in Kansas City, Kansas.
The FBI, the Kansas City, Kan., Police Department and the Kansas City, Mo., Police Department are investigating the case.
Assistant U.S. Attorney David Zabel is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Mississippi Man Sentenced for Smuggling Meth, Heroin Aboard TrainRead the Press Release
KANSAS CITY, Mo. – A Jonesboro, Mississippi, man was sentenced in federal court today for transporting more than five pounds of methamphetamine and nearly three pounds of heroin through Kansas City, Missouri, enroute to St. Louis, Mo.
Willie Lewis Braison, 48, was sentenced by U.S. District Judge Brian C. Wimes to seven years and three months in federal prison without parole. Braison was remanded to federal custody immediately following today’s hearing.
On Sept. 16, 2020, Braison pleaded guilty to one count of possessing methamphetamine with the intent to distribute and one count of possessing heroin with the intent to distribute.
A Kansas City, Mo., Police Department detective saw Braison get off the train at a local station on Jan. 17, 2019. The detective contacted Braison and asked to search his suitcase. Braison admitted that he was carrying a suitcase that contained methamphetamine and heroin aboard a train from Los Angeles, California, for delivery in St. Louis. Inside the suitcase, five bundles that contained a total of 5.1 pounds of methamphetamine were hidden inside a cardboard box that was labeled as a variety pack of cookies. Also inside the suitcase were two bundles of heroin hidden inside a pair of size 18 high-top tennis shoes. The bundles, shaped like the insoles of the shoes, weighed a total of 2.9 pounds.
This case was prosecuted by Assistant U.S. Attorney Trey Alford. It was investigated by the Kansas City Interdiction Task Force and the Drug Enforcement Administration.
Minneapolis Man and Woman Plead Guilty to Violent Twin Cities CarjackingRead the Press Release
MINNEAPOLIS – A Minneapolis man and woman pleaded guilty to their roles in an armed carjacking that occurred last summer, announced Acting U.S. Attorney W. Anders Folk.
According to court documents, on August 28, 2020, Jeremiah Lee Ironrope, 24, and Krisanne Marie Benjamin, 25, drove a maroon SUV to a parking lot in Richfield, Minnesota, and parked next to a 2017 Audi A4. Ironrope exited the SUV and pointed a Remington 870 l2-gauge sawed-off shotgun at the driver of the Audi. Ironrope demanded the car keys and then drove off in the Audi while Benjamin followed in the SUV. The following day when law enforcement attempted to stop the solen Audi, Ironrope sped away, driving erratically through traffic. Officers lost sight of the vehicle but later found it after the defendants abandoned it. The vehicle had been partially spray-painted black and inside officers found a variety of property including a stolen wallet, bottles of spray paint, a hat, gloves, and a used 12-gauge shotgun shell under the driver’s seat.
As part of their guilty pleas, Ironrope and Benjamin admitted to two additional carjackings that occurred on July 26, 2020, in Maple Grove and August 7, 2020, in St. Paul. In both instances, the defendants physically assaulted the victims before stealing their vehicles. Ironrope also admitted to two December 2020 carjackings occurring in St. Louis Park and St. Paul. In both instances, Ironrope pointed a handgun at the victims before stealing their vehicles.
Ironrope pleaded guilty to one count of carjacking and one count of using, carrying, and brandishing a firearm during and in relation to a crime of violence. Benjamin pleaded guilty to one count of aiding and abetting carjacking.
“Twin Cities motorists are safer with these two off the streets,” said Acting U.S. Attorney W. Anders Folk. “Over the past year we have witnessed a spike in carjackings throughout the metro area. Federal law enforcement will not tolerate this type of crime on our streets and will continue to investigate and prosecute violent perpetrators such as this.”
This case is the result of an investigation conducted by the FBI, the Minneapolis Police Department, the St. Paul Police Department, the Maple Grove Police Department, the Richfield Police Department, the Edina Police Department, the Roseville Police Department, and the Minnesota State Patrol.
This case is being prosecuted by Assistant U.S. Attorney Nathan H. Nelson.
Meriden Woman Sentenced to More Than 7 Years in Federal Prison for Child Exploitation OffenseRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that AMBER FOLEY, 33, formerly of Meriden, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 90 months of imprisonment, followed by 10 years of supervised release, for distributing sexually explicit images of a four-year old girl.
According to court documents and statements made in court, law enforcement began investigating Foley in October 2017 after she sent a sexually explicit photo of a four-year-old girl to a man with whom she was chatting on MeetMe, a mobile dating application. The investigation revealed that she had previously sent sexually explicit images of both the minor victim and a two-year-old boy to other men on MeetMe. She also initiated conversations about sexual activity involving the minor victim and asked the men to describe in explicit detail the sexual acts they would perform on the minor victim.
Investigators did not uncover any evidence that Foley and the minor victim met the men with whom Foley chatted.
Foley was arrested on January 18, 2018. On May 11, 2021, she pleaded guilty to one count of distribution of child pornography.
This matter was investigated by Homeland Security Investigations (HSI) and the Meriden and Hartford Police Departments, with the assistance of the Connecticut Department of Children and Families. The case is being prosecuted by Assistant U.S. Attorneys Nancy V. Gifford and Maria del Pilar Gonzalez.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Members of a Drug Trafficking Ring That Operated in Haughville Have Been SentencedRead the Press Release
INDIANAPOLIS - A drug trafficking ring consisting of at least 24 people have been sentenced in federal court. The organization operated in and around the historic Haughville neighborhood in
Indianapolis from April 2018 to January 2019. A federal grand jury in Evansville indicted the members of this organization in January of 2019.According to court documents, from April 2018 and continuing through January 2019, twenty- four members of a drug trafficking ring would sell large quantities of illegal substances in and around the near westside of Indianapolis. Jshane Trice and Terrence Stum directed the illegal activities of the methamphetamine, heroin, and cocaine trafficking organization. The other members of the organization would assist Trice or Stum by distributing the drugs, purchasing drugs for redistribution, prepare the drugs for distribution, transport the drugs for distribution, and conceal the drugs on other members behalf.
“This investigation is a great example of law enforcement working together to address citizens’ concerns about narcotics trafficking in their neighborhoods,” said Acting U.S. Attorney John E.
Childress. “Using combined resources to attack these criminal organizations works and I want to thank our federal, state, and local partners for their help in dismantling this high-level narcotics organization within Indianapolis.”Below are the individuals who were indicted, prosecuted, and sentenced to federal prison.
• Jshaun Trice – sentenced to 210 months and 5 years supervised release
• Terrence Stum – sentenced to 262 months and 5 years supervised release
• Demetrick Holder – sentenced to 72 months and 3 years supervised release
• Gerald Hoskins – sentenced to 36 months and 3 years supervised release
• Darryl Allen – sentenced to 240 months and 5 years supervised release
• Eric Bard – sentenced to 262 months and 5 years supervised release
• Dustin Manuel – sentenced to 96 months and 5 years supervised release
• Kelvin Washington – sentenced to 60 months and 4 years supervised release
• Devin Jones – sentenced to 30 months and 3 years supervised release
• Adrian Myles – sentenced to 60 months and 5 years supervised release
• Christopher Hill – sentenced to 120 months and 5 years supervised release
• Robert Hadley – sentenced to 72 months and 4 years supervised release
• Danny Jenkins – sentenced to 118 months and 4 years supervised release
• Antonio McClure – sentenced to 160 months and 5 years supervised release
• James Gibson – sentenced to 124 months and 5 years supervised release
• Carlo Payne – sentenced to 160 months and 5 years supervised release
• Thomas Acord – sentenced to 108 months and 3 years supervised release
• Alton Brown Sr. – sentenced to 121 months and 5 years supervised release
• Steven Savage – sentenced to time served and 4 years supervised release
• Derrick O’Connor – sentenced to 60 months and 3 years supervised release
• Melissa Kidwell – sentenced to time served and 4 years supervised release
• Jacqueline Huffman – sentenced to 60 months and 4 years supervised release
• Jacob Jones – sentenced to 140 months and 5 years supervised release
• Allen Brown – sentenced to time served and 4 years supervised releaseMultiple law enforcement agencies contributed to the prosecution of this case including the Federal Bureau of Investigations, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the
Drug Enforcement Administration, the Indiana State Police, and the Indianapolis Metropolitan Police
Department.Assistant U.S. Attorney’s Peter A. Blackett and Michelle P. Brady prosecuted 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.
Maryland Man Who Threatened Maryland Congressman Sentenced to Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Sidhartha Kumar Mathur, age 35, of West Friendship, Maryland to two years’ probation including eight weekends in the federal bureau of prisons and six months of home detention with electronic monitoring for making false statements to federal agents, relating to the death threats he sent to a Member of Congress representing Maryland. Judge Bennett also ordered Mathur to preform 100 hours of community service.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Chief Tom Manger of the United States Capitol Police.
According to his guilty plea, in December 2020, Mathur communicated a threat in a webmail message on a congressional representative’s website. Mathur’s threats included violent statements such as “I will kill you and blow up your office if you try to take my vote away” and “I know where you and your family lives. You will be ended.” Mathur listed the name and previous address of a former classmate and neighbor (Individual B) for the webmail contact information.
Mathur also left a threatening voice message on the same Representative’s District Office voicemail stating similar threats including, “If you even mess with my vote, I’m going to come and slit your throat and I’ll kill your family.”
During an interview with special agents of the United States Capitol Police, Mathur confirmed the phone number used to place the threatening voicemail belonged to him and that he called the congressional member out of anger.
As detailed in his plea agreement, Mathur further acknowledged that Individual B was a former neighbor and classmate. However, Mathur falsely denied responsibility for the webmail threat submitted in Individual B’s name. The agents reiterated that providing false statements to federal agents was a felony offense. Mathur continued to falsely deny responsibility for the threatening webmail messages written in Individual B’s name. When given a final opportunity to correct his false statement, Mathur again falsely denied making the webmail threat.
Acting United States Attorney Jonathan F. Lenzner commended the U.S. Capitol Police for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Zachary A. Myers who prosecuted the case.
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Martinsburg man admits to drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Dwayne Paige, of Martinsburg, West Virginia, has admitted to a drug charge, Acting United States Attorney Randolph J. Bernard announced.
Paige, 47, pleaded guilty today to one count of “Distribution of Fentanyl and Heroin.” Paige admitted to selling heroin and fentanyl in December 2018 in Berkeley County.
Paige faces at least 10 years and up to 13 years of incarceration and fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Timothy D. Helman is prosecuting the case on behalf of the government. The Washington County, Maryland Task Force investigated.
Chief U.S. District Judge Gina M. Groh presided.
Maine Nonprofits to Receive Federal Funding for Legal Assistance to VictimsRead the Press Release
PORTLAND, Maine—Four Maine nonprofit organizations will receive a total of over $2.3 million from the Legal Assistance for Victims (LAV) Program of the Department of Justice’s Office on Violence Against Women, Acting U.S. Attorney Donald E. Clark announced. Nationally, the LAV Program is awarding nearly $36 million in victim legal assistance funding to organizations across the country.
Caring Unlimited Corporation in Sanford will receive $593,653; the Family Violence Project in Augusta will receive $596,527; the Next Step Domestic Violence Project in Ellsworth will receive $600,000; and Partners for Peace in Bangor will receive $552,131.
“Providing assistance to crime victims is one of the fundamental responsibilities of the justice system,” said Acting U.S. Attorney Clark. “I am pleased that these four organizations will receive significant funding to enhance the crucial services they provide to Maine crime victims.”
The LAV Program is intended to increase the availability of civil and criminal legal assistance needed to effectively aid adult and youth victims of sexual assault, domestic violence, dating violence, and stalking by providing funds for comprehensive direct legal services to victims in legal matters relating to or arising out of that abuse or violence. Comprehensive legal services extend beyond representation in emergency and non-emergency protection order hearings to address the broad spectrum of legal issues that victims encounter, including family matters such as divorce, child custody or child support, immigration, administrative agency proceedings, and consumer or housing matters.
The Office on Violence Against Women provides federal leadership in developing the national capacity to reduce violence against women and administer justice for and strengthen services to victims of domestic violence, dating violence, sexual assault, and stalking.
Madison Man Sentenced to 2 Years for Illegal Gun PossessionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Deshawn Robb, 29, Milwaukee, Wisconsin, was sentenced yesterday by Chief U.S. District Judge James D. Peterson to two years in prison for being a felon in possession of a firearm. Robb pleaded guilty to this charge on June 21, 2021.
On June 20, 2020, a Wisconsin State Patrol Trooper stopped Robb for speeding in Marathon County, Wisconsin. While speaking with Robb, the trooper smelled marijuana in the car. Robb admitted that there was a handgun in the vehicle under his seat and that he was a convicted felon. The trooper recovered a loaded .40 caliber Smith & Wesson pistol. In 2013 Robb was convicted of the felony crime of substantial battery in Milwaukee County and was sentenced to prison.
At sentencing, Judge Peterson said that Robb was not abiding by his felony firearm prohibition and was concerned that Robb was putting himself in environments where he thought he needed a gun for protection. Judge Peterson found that the sentence was necessary to punish Robb and deter him from possessing another firearm. Robb will also serve 3 years of supervised release.
The charge against Robb was the result of an investigation conducted by the Wisconsin State Patrol, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Corey Stephan.
Lynnwood, Washington man sentenced to 10 years in prison for gun and drug traffickingRead the Press Release
Seattle – A 39-year-old Lynnwood, Washington, man was sentenced today in U.S. District Court in Seattle to 10 years in prison for federal charges stemming from his drug and gun trafficking, announced Acting U.S. Attorney Tessa M. Gorman. Jose L. Casablanca and co-defendant, Jessie N. Cruz, were arrested in late July 2020, following a lengthy undercover investigation. In May 2021, Casablanca pleaded guilty to conspiracy to distribute controlled substances, possession of a machine gun, and possession of a firearm in furtherance of a drug trafficking crime. At the sentencing hearing, U.S. District Judge Robert S. Lasnik said, “This is your last chance… When you come out in your 40s you will have missed many events with your daughters.” Judge Lasnik urged Casablanca to choose a new path.
“This defendant sold heroin, methamphetamine, and fentanyl, three of the most deadly and addictive controlled substances available, that have ravaged communities and families in Western Washington,” said Acting U.S. Attorney Gorman. “Add to that his firearms trafficking – including possessing a machine gun – and this defendant has demonstrated he is a danger to the community.”
Records filed in the case detail how two detectives with the Snohomish Regional Drug Task Force (SRDTF) posed as drug and gun buyers to gather information about the pair’s drug trafficking activity. The undercover detectives made purchases of heroin, methamphetamine, and fentanyl pills from Casablanca and Cruz. They also purchased a fully automatic firearm, classified as an illegal machine gun, and other firearms from the pair. Casablanca is a convicted felon and prohibited from possessing firearms, so the two discussed with undercover officers how Cruz transported the guns to the sale location so that Casablanca would not be caught with a firearm.
Casablanca and Cruz confided to the undercover detectives where they had hidden a massive amount of fentanyl in their Lynnwood home. On the day they were arrested at a regional airport, they met with yet another undercover officer who was posing as someone who could get them access to a pill press to make fentanyl tainted pills from their large stash of the potentially deadly drug. A court-authorized search warrant at the Lynnwood home resulted in the seizure of large amounts of heroin, fentanyl, multiple firearms, and ammunition, as well as body armor.
At the time of their arrest, law enforcement searched the Maserati the couple used in their drug trafficking activities and found both narcotics and a firearm.
Co-defendant Cruz was sentenced in April 2021 to 7 years in prison. Both will be on three years of supervised release following prison.
The case was investigated by the Snohomish Regional Drug Task Force and the United States Marshals Service Violent Offender Task Force, with assistance from the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
The case is being prosecuted by Assistant United States Attorney Kate Crisham.
Lynn Man Sentenced for Drug ConspiracyRead the Press Release
BOSTON – A Lynn man was sentenced today for his role in a drug trafficking conspiracy.
Patrick Dunn, 30, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to three years of supervised release. The government recommended a sentence of eight months in prison. On March 26, 2021, Dunn pleaded guilty to conspiracy to distribute and to possess with intent to distribute 40 grams or more of fentanyl and cocaine.
Dunn was charged as part of an investigation into a drug trafficking organization distributing large quantities of fentanyl, cocaine and other controlled substances in the greater Boston area. In September 2017, Dunn distributed cocaine and fentanyl to an undercover officer in Boston.
Acting United States Attorney Nathaniel R. Mendell; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Acting Commissioner Gregory Long made the announcement today. Assistant U.S. Attorneys Corey Steinberg and John Mulcahy of Mendell’s Narcotics & Money Laundering Unit prosecuted the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Limestone Man Sentenced for Hobbs ActRead the Press Release
Greeneville, Tenn. – On September 9, 2021, Marc Kristopher Skeen, 37, of Limestone, Tennessee, was sentenced to 245 months imprisonment, followed by a five-year term of supervised release by the Honorable Clifton L. Corker, in the United States District Court for the Eastern District of Tennessee at Greeneville.
A Grand Jury issued a multi-count indictment for Skeen in October 2019, for the offenses of robbery of a convenience store in Johnson City, Tennessee and discharging a firearm during the robbery. Skeen entered a plea of guilty in June 2021.
According to the plea agreement filed with the court, on July 28, 2019, Skeen arrived at the Stop In Market on S. Roan Street, in Johnson City, Tennessee. As he arrived, he discharged a firearm through his vehicle’s windshield. He then exited his car, fired two more rounds through the glass door of the convenience store and into nearby equipment. Officers of the Johnson City Police Department responded to the location. Skeen took the convenience store clerk hostage, which resulted in a 6-hour standoff with police. During the standoff, Skeen forced the hostage to provide him with beer and cigarettes from the store. Skeen released his hostage without injury.
“This prosecution is part of the Department of Justice’s comprehensive strategy to combat violence in our communities, and an example of a just outcome resulting from the collaboration between our office and the Johnson City Police Department.” said Acting United States Attorney Francis M. Hamilton III.
The criminal indictment was the result of an investigation by the Johnson City Police Department and was led by Investigator Shane Malone.
Assistant United States Attorneys B. Todd Martin represented the United States.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Lexington Man Sentenced to 28 Years for Federal Drug and Firearm ChargesRead the Press Release
LEXINGTON, Ky. — A Lexington man, Marquis Antonio Tompkins, 42, was sentenced on Friday, by Chief U.S. District Judge Danny C. Reeves, to 336 months (28 years) in prison, followed by 6 years of supervised release, after being convicted of multiple counts of distributing heroin and fentanyl, as well as being a convicted felon in possession of a firearm.
According to evidence presented at trial, Tompkins sold a combination of fentanyl and heroin, on five separate occasions in Lexington, between February 2020 and March 18, 2020. The jury also found that Tompkins possessed a Taurus .40 caliber pistol, after having been previously convicted of a prior felony offense. Tompkins had four prior felony convictions, two for distributing cocaine, one for use of a firearm in the commission of a drug offense, and one for being a felon in possession of a firearm. Based on his prior criminal history Tompkins was determined to be a Career Offender, under federal law. Additionally, Tompkins was on supervised release from a prior conviction when he was charged with the present offenses.
Under federal law, Tompkins must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for six years.
“For the fifth time, this Defendant has been convicted of a felony drug trafficking or firearm offense,” said Carlton S. Shier, IV, Acting Untied States Attorney for the Eastern District of Kentucky. “His drug trafficking, illegal possession of guns, continued defiance of the law, and status as a Career Offender undoubtedly justify the substantial sentence he was given.”
“This sentence sends a strong message and will protect the community by removing an armed criminal from our streets,” said R. Shawn Morrow, Special Agent in Charge of the ATF, Louisville Field Division. “We are committed to making our communities a safe place. As part of that commitment, ATF, along with our local law enforcement partners, will continue to aggressively investigate, arrest and pursue prosecution of these offenders.”
Acting United States Attorney Shier; Special Agent in Charge Morrow; and Col. Phillip Burnett, Jr., Commissioner of the Kentucky State Police, jointly announced the sentence.
The investigation was conducted by ATF, the Gateway Area High Intensity Drug Trafficking Area (HITDA) Task Force, and the Kentucky State Police. The United States was represented by Assistant U.S. Attorney Roger West.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, Acting U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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Leader of International Firearm Trafficking Conspiracy Pleads Guilty in Federal CourtRead the Press Release
PORTLAND, Ore.—A Mexican national residing in Portland pleaded guilty today for his leadership role in a conspiracy to illegally obtain high-powered semi-automatic rifles and high-grade firearms in and around the Portland area and smuggle them into Mexico for use by the Jalisco New Generation Cartel (CJNG).
David Acosta-Rosales, 51, pleaded guilty to conspiracy to make false statements in connection with the acquisition of firearms.
According to court documents, since at least September 2019, Acosta-Rosales served as the leader of a high-volume gun trafficking cell operating in the Portland area. In this role, Acosta-Rosales received orders and requests for high-powered semi-automatic rifles, high-grade firearms, and explosive devices from co-conspirators in Mexico affiliated with CJNG. Acosta-Rosales received hundreds of thousands of dollars to operate the scheme, recruited numerous straw purchasers to make illegal gun purchases, obliterated serial numbers on the guns, and organized the transfer and transportation of the guns from Oregon to Mexico. In total, the conspiracy involved the transfer of more than 100 guns to Mexico.
On October 6, 2020, a federal grand jury in Portland returned a 52-count indictment charging Acosta-Rosales and 10 associates with conspiracy, making false statements in connection with the acquisition of firearms, possessing and receiving firearms with obliterated serial numbers, and smuggling goods from the United States.
Acosta-Rosales faces a maximum sentence of 10 years in prison, a $250,000 fine, and three years of supervised release. He will be sentenced on December 6, 2021 before U.S. District Court Judge Karin J. Immergut.
As part of his plea agreement, Acosta-Rosales has agreed to forfeit any criminally-derived assets involved in the commission of his crimes identified by the government prior to sentencing.
Seven of Acosta-Rosales’ co-conspirators have pleaded guilty and are awaiting sentencing. The remaining three are pending trial.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Lawrence Man Pleads Guilty to Distributing Fentanyl PillsRead the Press Release
BOSTON – A Lawrence man pleaded guilty today in federal court in Boston in connection with distributing fentanyl pills.
Ruben Mejia, 28, pleaded guilty to one count of possession with intent to distribute and distribution of fentanyl and heroin, two counts of possession with intent to distribute and distribution of 40 grams or more of fentanyl and heroin and one count of possession with intent to distribute 400 grams or more of fentanyl and heroin. U.S. Senior District Court Judge William G. Young scheduled sentencing for Jan. 12, 2022. Mejia was arrested and charged in September 2020.
On Aug. 13, 2020, Mejia sold an estimated 500 fentanyl pills disguised as oxycodone pills for $4,000 ($8 per pill). Mejia sold the pills, which he stored in a baby diaper, in five bags containing approximately 100 pills each. On Aug. 26, 2020, Mejia sold another estimated 500 fentanyl pills for $4,000. Mejia was arrested on Sept. 11, 2020 after he was found in possession of an estimated 5,000 fentanyl pills, which he planned to sell for $40,000.
The charge of possession with intent to distribute and distribution of fentanyl and heroin provides for a sentence of up to 20 years in prison, at least three years and up to life of supervised release and a fine of up to $1 million. The charge of possession with intent to distribute and distribution of 40 grams or more of fentanyl and heroin provides for a sentence of at least five years and up to 40 years in prison, at least four years and up to life of supervised release and a fine of up to $5 million. The charge of possession with intent to distribute 400 grams or more of fentanyl and heroin provides for a sentence of at least 10 years and up to life in prison, at least five years and up to life of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Lawrence Police Chief Roy Vasque made the announcement. Assistant U.S. Attorney Craig Estes of Mendell’s Narcotics and Money Laundering Unit is prosecuting the case.
Lafayette Firearms Store and Owner Indicted on Federal Firearms ChargesRead the Press Release
LAFAYETTE, La. - Acting United States Attorney Alexander C. Van Hook announced that two individuals from Broussard, Louisiana, and a firearms business in Lafayette, Louisiana, have each been indicted for conspiring to deal firearms without a license, making false statements in records required to be kept by a licensed firearms dealer, and failing to file sales reports in connection with their firearms business located in Lafayette.
Jeremiah Micah Deare, 37, Sarah Elaine Fogle, 30, and Dave’s Gunshop, LLC, a business owned by Deare, have been charged in an indictment with one count of conspiracy to engage in the business of dealing in firearms without a license, two counts of making false statements with respect to records of a licensed firearms dealer, and four counts of failure to file multiple sales reports. The indictment also seeks forfeiture of 619 firearms which were involved in the commission of these offenses.
Deare was the owner of Dave’s Gunshop, LLC (Dave’s) and the responsible party for Dave’s Federal Firearms License. Deare and Fogle did not hold a Federal Firearms License in their individual capacities. The indictment alleges that on or about August 13, 2019, a compliance inspection was conducted at Dave’s by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Dave’s, through Deare, was warned for numerous violations, including failing to complete an ATF-4473 (1 time), failing to accurately keep acquisition and disposition records for dispositions (67 times), failing to accurately keep acquisition and disposition records for acquisitions (62 times), transferring firearms without having a final response from the National Instant Criminal Background Check System (2 times), inaccurate completion of ATF-4473 forms (111 times), and for missing firearms. The indictment alleges that, on that same day, the ATF investigator provided an Acknowledgement of Federal Firearms Regulations to inform Dave’s and Deare of their responsibilities as a Federal Firearms License holder. The acknowledgment was signed by Deare acknowledging that he understood he was responsible for familiarizing himself with the laws and regulations governing the operation of Dave’s.
The indictment further alleges that on September 19, 2019, Deare and Fogle attended an in-person warning conference at the ATF office in Baton Rouge, Louisiana, wherein the violations were discussed. Deare was provided the opportunity to comment on the violations and articulate the corrective actions that would be taken to ensure that future violations would not occur.
The indictment also alleges that Deare and Fogle willfully engaged in the business of dealing in firearms without a license by buying and selling firearms without complying with the recordkeeping and background check requirements required by federal law. Deare and Fogle acquired large quantities of firearms and ammunition from estate sales and other means but would not document the firearms in Dave’s Acquisition & Disposition Book as required by federal law. In addition, firearms brought to Dave’s to be sold on consignment were not logged into Dave’s Acquisition & Disposition Book and were not placed for sale at Dave’s.
It is also alleged that Deare and Fogle kept firearms at their residence without logging them out of Dave’s store inventory and would travel with the firearms to gun shows conducted at various locations in Louisiana and in other states. Deare and Fogle sold firearms at gun shows to non-Louisiana residents for which no ATF-4473 or background checks were ever completed. Their failure to conduct background checks resulted in the sales of firearms to prohibited persons, including convicted felons. Additionally, the sales of firearms at gun shows outside the State of Louisiana were not done through a dealer licensed in the state where the gun show was conducted as required by law. The proceeds from the out-of-state gun sales of firearms were not included as revenue for Dave’s, but instead Deare and Fogle used it for their own personal gain.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The ATF is conducting the investigation and Assistant U.S. Attorney David J. Ayo is prosecuting the case.
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