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Friday 23 July 2021
Former Niceville Avionics Engineer Pleads Guilty to Federal Income Tax CrimesRead the Press Release
PENSACOLA, FLORIDA – Mark D. Schneider, 60, formerly of Niceville, Florida, pled guilty yesterday to multiple federal tax crimes, announced Jason R. Coody, Acting United States Attorney for the Northern District of Florida. Schneider, who lived in Niceville during the commission of his offenses, was recently arrested by the United States Marshals Service after becoming a fugitive when he failed to appear on the day of his trial in Pensacola in January 2021.
At his guilty plea, Schneider admitted in federal court that, while living in Niceville and then in Huntsville, Alabama, he evaded paying his federal income taxes between 2007 and 2016. Schneider agreed that the taxes he evaded payment on totaled over $200,000. During the plea, he also confirmed that he attempted to obstruct the Internal Revenue Service investigation into his criminal behavior by mailing false and fictitious documents, fraudulently trying to claim tax refunds, and interfering with federal grand jury subpoenas. When Schneider failed to appear for his federal jury trial in Pensacola in January, a warrant was issued for his arrest. The United States Marshals Service found Schneider working at a hotel outside Cleveland, Ohio, and took him into custody. At his guilty plea, Schneider also admitted to failing to appear to court as directed by Court Order.
“The United States relies on the payment of taxes to defend our country and maintain its operations,” stated Acting United States Attorney Coody. “We will investigate and prosecute those who falsely misrepresent their income – whether by traditional evasion or the filing of fraudulent documents. Notwithstanding, falsification and flight, this defendant has been held to account as a result of the collective efforts of IRS Criminal Investigation and the U.S. Marshals Service.”
“The defendant has demonstrated a flagrant pattern of evasion as indicated by his own admission to a years-long scheme to evade his tax obligations and further by his failed attempt to evade answering to the related charges by becoming a fugitive,” said Special Agent in Charge Brian Payne of IRS Criminal Investigation. “Thanks to our partnership with the U.S. Marshals, Mr. Schneider will now be held accountable for all of his attempts to elude justice.”
Schneider’s sentencing hearing is scheduled for October 15, 2021, at 10:30 am, at the United States Courthouse in Pensacola before the Honorable United States District Judge M. Casey Rodgers. Schneider faces up to 30 years imprisonment on the tax related crimes. He faces up to 10 years, consecutively, for failing to appear in court as ordered.
The case was investigated by the Internal Revenue Service – Criminal Investigation and the United States Marshals Service. The case is being prosecuted by Assistant United States Attorneys David L. Goldberg and Kaitlin Weiss.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Former New Mexico State Police officer convicted of distribution of marijuana and methamphetamineRead the Press Release
ALBUQUERQUE, N.M. – Daniel Capehart, 36, of Bloomfield, New Mexico, was convicted on July 22 by a federal jury of three counts of distribution of marijuana and methamphetamine, two of which occurred within 1,000 feet of a school and playground, in Farmington, New Mexico.
According to court records, on June 15, 2018, Capehart, then a patrol officer with the New Mexico State Police, conducted a traffic stop during which he came into contact with a 16-year old passenger identified as Jane Doe 1 in Farmington. Capehart requested Jane Doe 1’s phone number, email address and date of birth. Capehart then gave Jane Doe 1 a business card with his personal cell phone number. Approximately an hour after the traffic stop concluded, Capehart began texting Jane Doe 1.
On June 19, 2018, Jane Doe 1 reported the incident and text messages to the San Juan County Sheriff’s Office. Law enforcement immediately launched an investigation into Capehart’s conduct. As part of this investigation, Jane Doe 1 allowed law enforcement to use her phone and pretend to be her in further communications with Capehart.
On June 20, 2018, Capehart offered to provide marijuana to Jane Doe 1, unaware he was communicating with law enforcement. In exchange, still believing he was communicating with a 16-year old girl, Capehart asked for “selfies” as payment. After Capehart instructed Jane Doe 1 on how to avoid being caught with marijuana and the two agreeing on a delivery point that was close to Jane Doe 1’s Farmington home, in the early morning hours of June 21, 2018, Capehart delivered marijuana to the agreed location.
Over the next two days, Capehart continued sending messages to whom he thought was Jane Doe 1. After Capehart asked to speak with the 16-year old, detectives had an undercover deputy speak with the defendant in three separate recorded phone calls. In those calls, Capehart continued to discuss marijuana believing he was speaking with a 16-year-old girl.
On June 23, 2018, Capehart again offered to provide marijuana to Jane Doe 1. Not realizing he was communicating with law enforcement, Capehart specified a location in Farmington that was within 1,000 feet of Farmington High School and Brookside Park playground. Capehart delivered the marijuana intended for the 16-year-old that same day.
Law enforcement also developed a confidential source (CS) who had prior dealings with Capehart and she agreed to cooperate. As part of the CS’s cooperation, she allowed law enforcement to use her phone to pretend to be the CS when communicating with Capehart. In those messages, Capehart devised a plan in which the CS would tell him when she was driving with someone who had methamphetamine. Capehart would conduct a traffic stop of the friend’s vehicle, locate the methamphetamine, and provide a portion of the methamphetamine to the CS in exchange for sex. Capehart was unaware that he was communicating this plan to law enforcement and that the CS’s friend would be an undercover agent.
On June 28, 2018, Capehart executed the plan and conducted the traffic stop. Capehart arrested the undercover agent and located the methamphetamine in the undercover agent’s pocket. After booking the undercover agent in jail, in the early morning hours of June 29, 2018, Capehart drove to a park located by the CS’s home in Bloomfield. Capehart then delivered more than five grams of methamphetamine by bathrooms in the park, which was also located within 1,000 feet of Central Primary Elementary School. Capehart was arrested later that day.
A sentencing date has not been scheduled. Capehart faces a mandatory minimum of 5 years and up to 40 years in prison on the methamphetamine count.
The FBI, San Juan County Sheriff’s Office, High Intensity Drug Trafficking Areas (HIDTA) Region II Narcotics Task Force, and Farmington Police Department investigated this case. The U.S. Attorney’s Office for the District of New Mexico is prosecuting the case.
The HIDTA Region II Narcotics Task Force is comprised of officers and investigators from the Farmington Police Department, San Juan County Sheriff’s Office, Bloomfield Police Department and Aztec Police Department, and is part of the HIDTA program created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Former New Bedford Man Pleads Guilty to False Pandemic Unemployment ClaimsRead the Press Release
BOSTON – A former New Bedford man pleaded guilty in federal court in Boston yesterday to federal wire fraud charges arising from claims for Pandemic Unemployment Assistance (PUA) funds.
Arthur Pacheco, 47, previously of New Bedford, Mass., pleaded guilty to two counts of wire fraud. U.S. District Court Judge Indira Talwani scheduled sentencing for Nov. 18, 2021. Arthur Pacheco was arrested and charged in December 2020 with his wife Tiffany Pacheco, who is scheduled to plead guilty on Aug. 30, 2021.
According to court documents, Tiffany was hired by the Massachusetts Department of Unemployment Assistance (DUA) in April 2020, shortly after her release from federal prison following a conviction for aggravated identity theft. While employed by DUA, Tiffany allegedly misused her position to submit fraudulent PUA claim information on behalf of herself and her husband, Arthur, who was incarcerated in Texas until Sept. 4, 2020, and thus ineligible for PUA funds.
After Arthur was released from custody, he placed three calls to DUA regarding an appeal of his claim for PUA benefits. Arthur conveyed false information about the timing of his incarceration, including stating during one call that he had only been incarcerated for about one month. In addition, Arthur referenced an employment letter that he could provide to substantiate his unemployment claim. DUA then received a supposed letter from a Massachusetts retailer, indicating that the retailer withdrew a January 2020 job offer due to COVID-19. In fact, the letter was a forgery, and this retailer did not extend any job offer to Arthur in January 2020, at which time he was incarcerated in Texas.
The charges of wire fraud provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The investigation was conducted by Homeland Security’s Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized field investigative group comprised of personnel from various local, state, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity, and benefit fraud schemes.
Acting United States Attorney Nathaniel R. Mendell; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; and Nikitas Splagounias, Acting Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigation made the announcement. The New Bedford Police Department, Massachusetts Parole Board and Massachusetts Department of Unemployment Assistance, Program Integrity Unit provided valuable assistance with the investigation. Assistant U.S. Attorneys Bill Abely and Dustin Chao of Mendell’s Criminal Division are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Member of Latin Kings Massachusetts State Leadership Sentenced for Racketeering ConspiracyRead the Press Release
BOSTON – The former Second-in-Command, or Cacique, of the Massachusetts Almighty Latin King and Queen Nation (Latin Kings) was sentenced yesterday on racketeering charges.
Angel Roldan, a/k/a “King Big A,” 35, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to seven years in prison and three years of supervised release. In February 2020, Roldan pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy.
From at least 2018 through 2019, Roldan served as the Cacique, or second-in-command, of the Latin Kings in Massachusetts. As part of this leadership role, Roldan sought out “paperwork” concerning Latin Kings members who provided information to law enforcement. Once the informant and status as an informant was confirmed, Roldan organized violence against them, both inside the prison system and on the street. During the investigation, Roldan was also captured on a recording selling a cooperating witness approximately 100 grams of fentanyl and a firearm.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Roldan is the 37th defendant to be sentenced in the case.
Acting United States Attorney Nathaniel R. Mendel; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Joseph C. Cordeiro made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorneys Philip A. Mallard and Lauren Graber of Mendell’s Criminal Division are prosecuted the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
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.
Former Alabama Correctional Supervisor Convicted for Allowing Inmate AbuseRead the Press Release
After a three-day trial, a federal jury convicted former Alabama Department of Corrections (ADOC) shift commander Willie Burks, 42, of failing to stop an officer under his command from assaulting an inmate at ADOC’s Elmore Correctional Facility.
The evidence at trial established that when Burks watched calmly as his subordinate, Sergeant Ulysses Oliver, took a handcuffed and compliant inmate out of an observation room, threw him onto the ground, and then punched, kicked, and beat him with a baton. Rather than intervene, as Burks had been trained to do, Burks stood silent until the end of the beating, at which time he commented, “That’s fair.” When Oliver turned himself in for using excessive force, triggering an investigation, Burks instructed Oliver to write in his report that Burks had told him to stop, even though that was not true, in order to cover up his failure to intervene.
“The Constitution requires officers to take reasonable steps to stop excessive force when they know of it and have the power to stop it,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Defendant Burks defied the Constitution, and ignored his oath as a law enforcement officer, when he casually watched a handcuffed and defenseless inmate in his custody being assaulted by an officer under his command. We stand ready to hold officers who commit federal civil rights violations inside of jails and prisons accountable for their misconduct.”
“Correctional officers have an incredibly difficult and important job,” said Acting U.S. Attorney Sandra J. Stewart for the Middle District of Alabama. “Although a vast majority of them serve with honor, cases like this damage public trust and make the job they do more difficult. When officers abandon their oath to protect and serve, and turn a blind eye to criminal conduct, they must be held accountable. This office is committed to prosecute anyone who violates the law.”
“When a law enforcement officer accepts his or her oath of office, they also accept the higher standard they must adhere to,” said FBI Special Agent in Charge James Jewell of the FBI’s Mobile Division. “The abuse of prisoners should not, and will not, be tolerated by the men and women of the FBI and their work in this case was exemplary. The cooperation of the multiple agencies involved in this case, and most specifically the Alabama Department of Corrections, is a testament to their dedication to the administration of justice.”
“We condemn in the strongest possible terms Burks’ behavior and blatant violation of his sworn oath to serve,” said Chief Law Enforcement Officer Arnaldo Mercado for the Alabama Department of Corrections’ Law Enforcement Services Division. “We extend our thanks to the DOJ for its assistance in bringing forth justice in this case.”
Burks is the fourth correctional officer to be convicted in federal court in connection with this assault. Former ADOC Sergeant Ulysses Oliver previously pleaded guilty for assaulting the inmate, and former Corrections Officers Briana Mosley and Leon Williams, who were also present during the assault, previously pleaded guilty for failing to intervene.
Burks will be sentenced in November. He faces a statutory maximum sentence of 10 years in prison.
This case was investigated by the FBI’s Mobile Division and ADOC’s Law Enforcement Services Division. It was prosecuted by Assistant U.S. Attorney Eric Counts of the Middle District of Alabama, and Trial Attorneys Katherine DeVar and David Reese of the Justice Department’s Civil Rights Division.
Separately, the Department of Justice is prosecuting a civil case against Alabama and ADOC that alleges a pattern or practice of excessive force by ADOC security staff in violation of the United States Constitution. See United States v. Alabama, No. 2:20-cv-01971-RDP (N.D. Ala.).
Former Alabama Correctional Supervisor Convicted for Allowing Inmate AbuseRead the Press Release
WASHINGTON – After a three-day trial, a federal jury convicted former Alabama Department of Corrections (ADOC) shift commander Willie M. Burks III, 42, of failing to stop an officer under his command from assaulting an inmate at ADOC’s Elmore Correctional Facility. The jury rendered its guilty verdict on July 21, 2021.
The evidence at trial established that Burks watched calmly as his subordinate, Sergeant Ulysses Oliver, took a handcuffed and compliant inmate out of an observation room, threw him onto the ground, and then punched, kicked, and beat him with a baton. Rather than intervene, as Burks had been trained to do, Burks stood silent until the end of the beating, at which time he commented, “that’s fair.” When Oliver turned himself in for using excessive force, triggering an investigation, Burks instructed Oliver to write in his report that Burks had told him to stop, even though that was not true, in order to cover up his failure to intervene.
“The Constitution requires officers to take reasonable steps to stop excessive force when they know of it and have the power to stop it,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Defendant Burks defied the Constitution, and ignored his oath as a law enforcement officer, when he casually watched a handcuffed and defenseless inmate in his custody being assaulted by an officer under his command. We stand ready to hold officers who commit federal civil rights violations inside of jails and prisons accountable for their misconduct.”
“Correctional officers have an incredibly difficult and important job,” said Acting U.S. Attorney Sandra J. Stewart for the Middle District of Alabama. “Although a vast majority of them serve with honor, cases like this damage public trust and make the job they do more difficult. When officers abandon their oath to protect and serve, and turn a blind eye to criminal conduct, they must be held accountable. This office is committed to prosecute anyone who violates the law.”
“When a law enforcement officer accepts his or her oath of office they also accept the higher standard they must adhere to,” said FBI Special Agent in Charge James Jewell of the FBI’s Mobile Division. “The abuse of prisoners should not, and will not, be tolerated by the men and women of the FBI and their work in this case was exemplary. The cooperation of the multiple agencies involved in this case, and most specifically the Alabama Department of Corrections, is a testament to their dedication to the administration of justice.”
“We condemn in the strongest possible terms Burks’ behavior and blatant violation of his sworn oath to serve, said Chief Law Enforcement Officer Arnaldo Mercado for the Alabama Department of Corrections’ Law Enforcement Services Division. “We extend our thanks to the DOJ for their assistance in bringing forth justice in this case.”
Burks is the fourth correctional officer to be convicted in federal court in connection with this assault. Former ADOC Sergeant Ulysses Oliver previously pleaded guilty for assaulting the inmate, and former Corrections Officers Briana Mosley and Leon Williams, who were also present during the assault, previously pleaded guilty for failing to intervene.
Burks will be sentenced in November. He faces a statutory maximum sentence of 10 years in prison.
This case was investigated by the FBI’s Mobile Division and ADOC’s Law Enforcement Services Division. It was prosecuted by Assistant U.S. Attorney Eric Counts of the Middle District of Alabama, and Trial Attorneys Katherine DeVar and David Reese of the DOJ’s Civil Rights Division.
Separately, the Department of Justice is prosecuting a civil case against Alabama and ADOC that alleges a pattern or practice of excessive force by ADOC security staff in violation of the United States Constitution. United States v. Alabama, No. 2:20-cv-01971-RDP (N.D. Ala.).
Felon Indicted on Federal Gun ChargesRead the Press Release
NEW ORLEANS, LA – United States Attorney Duane A. Evans announced that QUINCY JACKSON, age 31 of New Orleans, Louisiana, was charged on July 23, 2021 in a single count indictment by a Federal Grand Jury for violating the Federal Gun Control Act, Title 18 United States Code, Sections 922(g)(1) and 924(a)(2).
According to court documents, JACKSON was previously convicted of manslaughter, possession of heroin, and possession with intent to distribute cocaine. Being a felon, JACKSON is prohibited from possessing a firearm. He is charged with having a Glock semi-automatic handgun on July 5, 2021. If convicted of this offense, JACKSON faces a maximum term of ten (10) years imprisonment, a fine of up to $250,000.00, up to three (3) years of supervised release following any term of imprisonment, and a mandatory $100 special assessment fee.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the New Orleans Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Charles D. Strauss.
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Federal Jury Finds Former Nurse Guilty of Fraudulently Obtaining and Tampering with Opioid Pain KillerRead the Press Release
SALT LAKE CITY- Nathan Pehrson, 41, of Sandy, was convicted by a federal jury in the District of Utah of three counts related to fraudulently obtaining and tampering with the pain killing narcotic hydromorphone, a powerful schedule II opioid drug that is used to treat patients with moderate to severe pain.
The jury found that during Pehrson’s employment as a nurse at an Intermountain Healthcare facility on a surgical and trauma ward, that he diverted hydromorphone from pre-loaded syringes for his personal use, replaced the pain medication with saline solution, and then returned the syringes containing greatly reduced amounts of the pain killer hydromorphone for medical use by other hospital staff. Pehrson was also convicted of making false statements to a special agent from the Food and Drug Administration about his illegal activity while under investigation for his crimes. Pehrson’s sentencing is scheduled for October 12th.
“Today’s guilty verdicts are proof that healthcare providers will be held accountable for stealing, using, or tampering with opioid pain medications meant for patients that are suffering,” said Acting United States Attorney Andrea T. Martinez. “The opioid epidemic has many faces, and no one is immune from the problems that we face in society with drug addiction. I commend the hospital staff who reported the defendant’s illegal activity to federal law enforcement.”
“The FDA oversees the U.S. drug supply to ensure that it is safe and effective, and those who knowingly tamper with medicines put patients’ health at risk,” said Special Agent in Charge Charles L. Grinstead, FDA Office of Criminal Investigations Kansas City Field Office. “We will continue to protect the public health and bring to justice health care professionals who take advantage of their unique position and compromise their patients’ health and comfort by tampering with needed drugs.”
Assistant United States Attorneys from the Utah U.S. Attorney’s Office prosecuted the case against Pehrson. Special Agents from the Food and Drug Administration Office of Criminal Investigations conducted the investigation.
Federal Grand Jury B Indictments Announced- JulyRead the Press Release
Acting United States Attorney Clint Johnson today announced the results of the July 2021 Federal Grand Jury B.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Nicholas Scott Avery, Chelsea Marie Fishinghawk. Carjacking. On June 17, 2021, Avery, 30, and Fishinghawk, 23, allegedly aided and abetted each another when they attempted to take a 2008 Maroon Honda Accord from the victim by force, violence, and intimidation. The FBI and Tulsa Police Department are the investigative agencies. 21-CR-330
Dustin James Gullett. Coercion and Enticement of a Minor; Aggravated Sexual Abuse of a Minor by Force in Indian Country; Receipt of Child Pornography. Gullett, 41, of Ardmore, is charged with coercion and enticement of a minor, aggravated sexual abuse of a minor by force, and receipt of child pornography. The crimes allegedly took place from March 5, 2021, to March 8, 2021, and the victim was between 12 and 16 years old. U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Bartlesville Police Department, and Tulsa Police Department are the investigative agencies. 21-CR-324
Joseph Dale Irby. Felon in Possession of a Firearm and Ammunition. Irby, 30, of Tulsa, is charged with being a felon in possession of a Strassell’s Machine Inc. 9 mm Luger caliber pistol and 37 rounds of associated ammunition. The FBI and Tulsa Police Department are the investigative agencies. 21-CR-331
Russell Rudolph Johnson. Assault of an Intimate/Dating Partner by Strangling and Suffocating in Indian Country; Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country; Carrying, Using, Brandishing, and Discharging a Firearm During and in Relation to a Crime of Violence. Johnson, 47, of Tulsa, is charged with strangling an intimate partner on June 21, 2021. He is further charged with shooting the woman with a firearm the same day. Finally, he is charged with discharging the firearm during a crime of violence. The Tulsa County Sheriff’s Office and FBI are the investigative agencies. 21-CR-334
Rafael Gomez Medina; Daniel Rico Nolasco; Anabel Rodriquez Cervantes. Drug Conspiracy; Possession of Methamphetamine with Intent to Distribute. Medina, 51, of Tulsa, Nolasco, 42, of Tulsa, and Rodriguez, 33, of Oklahoma City, are charged with conspiring together and with others to distribute and to possess with intent to distribute 500 grams or more of methamphetamine. The trio are further charged possessing with intent to distribute 500 grams or more of methamphetamine. The Drug Enforcement Administration is the investigative agency. 21-CR-325
David Anthony Romannose. Aggravated Sexual Abuse by Force and Threat in Indian Country; Sexual Abuse of a Minor in Indian Country. Romannose, 44, of Stilwell, allegedly sexually abused a minor between 12 and 16 years of age on July 4, 2017. See initial charging press releases here. The FBI, Oneida Indian Nation Police Department, and Craig County Sheriff’s Office are the investigative agencies. 21-CR-332
Johnny Wayne Rose, Jr. Attempted Coercion and Enticement of a Minor. Rose Jr., 40, of Mannford allegedly attempted to entice an individual he believed to be a minor to engage in sexual activity. The Roger’s County Sheriff’s Office is the investigative agency. 21-CR-326
Adam Douglas Sherwood. Drug Conspiracy; Possession of Methamphetamine with Intent to Distribute; Unlawful Use of a Communication Facility; Possession of Firearms in Furtherance of Drug Trafficking Crimes. As early as 2018, Sherwood, 43, of Wyandotte, co-conspirator 1, and others known to the grand jury allegedly conspired to distribute and to possess with intent to distribute 500 grams or more of methamphetamine. On May 23, 2020, Sherwood and co-conspirator 1 aided and abetted each other to knowingly possess with intent to distribute methamphetamine. Sherwood further used a cell phone to send or receive at least 13 texts communicating about the distribution of the drug. Sherwood and co-conspirator 1 possessed a Lorcin Engineering Company .380 ACP caliber single action pistol and a Sturm, Ruger & Co. .22 MWR caliber double-action revolver. Additionally, Sherwood is alleged to have distributed methamphetamine to a number of drug dealers and drug users across Northeast Oklahoma for a period of over least two years dating back to early 2018. The Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration, and Tulsa Police Department are the investigative agencies. 20-CR-307
Kip Jerome Shotpouch. Coercion and Enticement of a Minor in Indian Country; Possession of Child Pornography. Shotpuch, 37, of Jay, is alleged to have knowingly enticed and coerced a minor into engaging in sexual activity on April 17, 2016. He is further charged with possessing one or more child pornography images and video files of children younger than 12 years old. At the time of the crime, Shotpouch was a bailiff at the Delaware County Courthouse. U.S. Customs and Immigration Enforcement’s Homeland Security Investigations and the Delaware County Sheriff’s Office are the investigative agencies. 21-CR-333
Aleta Necole Thomas; Pepper Jones; Katrina West. False Statement to a Financial Institution (Counts 1-18); Aggravated Identity Theft (Counts 16-17). Pepper Jones, 42, and Katrina West, 38, both of Tulsa, are newly charged in this superseding indictment. Thomas, 42, of Tulsa, was previously charged. In total, Thomas, Jones, and West, together and separately, are alleged to have fraudulently applied for and received more than $795,000 worth of Paycheck Protection Program forgivable loans administered by the Small Business Administration under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Some of the false businesses the defendants allegedly used to apply for the loans included the Lead Us Kids Home Daycare, Coming Correction Community Ministries, Coming Correct Community Ministries II, and Lead Us Kids Daycare II. The Office of Inspector General Board of Governors of the Federal Reserve System; U.S. Department of Treasury Inspector General for Tax Administration, Small Business Administration Office of Inspector General, and the Federal Bureau of Investigation are the investigative agencies. 21-CR-239
Brandon Tyler Trammell. Theft in Indian Country - Over $1,000. Trammell, 25, of Sand Springs, is charged with stealing a 2006 Pontiac G6 Sedan. The FBI and Bixby Police Department are the investigative agencies. 21-CR-327
East Hartford Man Sentenced to More Than 3 Years in Federal Prison for Fentanyl DistributionRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that CURON JOHNSON, also known as “Buck,” 31, of East Hartford, was sentenced yesterday by U.S. District Judge Janet Bond Arterton in New Haven to 37 months of imprisonment, followed by three years of supervised release, for distributing fentanyl.
According to court documents and statements made in court, in the summer of 2020, Hartford Police learned that Kyle Pitts, also known as “Bark,” and others, were selling fentanyl, and that Pitts was using his apartment on Farmington Avenue in West Hartford to store fentanyl. Between August and October 2020, Hartford Police and the FBI’s Northern Connecticut Gang Task Force made multiple controlled purchases of fentanyl from Pitts, Johnson and Jabari Walcott, of Hartford.
Johnson has been detained since his arrest on November 4, 2020. On April 29, 2021, he pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, fentanyl. This is Johnson’s second federal narcotics-related conviction.
Pitts and Walcott pleaded guilty to the same charge and await sentencing.
The FBI’s Northern Connecticut Gang Task Force includes members of the Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
This case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Dominican Republic Man Apprehended in a High-Speed Boat Chase Sentenced to 135 Months in Federal Prison for Trafficking over 1,000 Kilograms of CocaineRead the Press Release
St. Thomas – U.S. Attorney Gretchen C.F. Shappert announced that a Dominican Republic national was sentenced today in federal court on St. Thomas to 135 months in prison for trafficking over 1,000 kilograms of cocaine.
According to court documents, Dany Perez-Brito, 45, was one of three individuals apprehended on December 11, 2018 onboard a go-fast vessel loaded with over 5,000 bales containing a total of approximately 1,132 kilograms of cocaine. A United States Coast Guard (USCG) aircraft detected the go-fast style vessel about 65 nautical miles north of San Juan, Puerto Rico. After the boat was detected by USCG aircraft and maritime personnel, the go-fast vessel led authorities on a ten-hour chase in international waters between Puerto Rico and St. Thomas until the go-fast boat finally became dead in the water approximately 96 nautical miles north of St. Thomas. In court, Perez-Brito admitted to having conspired to transport the cocaine by boat from Venezuela to Puerto Rico, for which he expected to be paid $200,000.
This case was being investigated by the USCG, U.S. Customs and Border Protection (CBP) Air and Marine Operations (AMO), Homeland Security Investigations (HSI), and the Drug Enforcement Agency (DEA).
Assistant U.S. Attorney Meredith J. Edwards is prosecuting the case, which is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Doctor and Wife Indicted for Genetic Testing Kickback and Bribery SchemeRead the Press Release
NEWARK, N.J. – A Pennsylvania doctor and his wife were charged today for their roles in schemes to solicit and receive kickbacks and bribes in exchange for ordering genetic tests, Acting U.S. Attorney Rachael A. Honig announced today.
Yitzchok “Barry” Kurtzer, 61, and Robin Kurtzer, 60, both of Monsey, New York, are charged by indictment with various counts for participating in a scheme to solicit and receive kickbacks and bribes in exchange for ordering genetic tests. Yitzchok Kurtzer is also charged with health care fraud related to the kickback scheme. Two of Yitzchok Kurtzer’s employees, Amber Harris and Shanelyn Kennedy, have each previously pleaded guilty for their roles in the kickback scheme, and Lee Besen and Kimberly Schmidt have also each previously pleaded guilty for a related cash-for-genetic tests scheme. Sentencings for each of those defendants is pending.
According to documents filed in this case:
Yitzchok Kurtzer was a primary care physician with separate offices in the Scranton, Pennsylvania, area. Robin Kurtzer helped manage those offices. Beginning in 2018, Yitzchok Kurtzer and Robin Kurtzer solicited and received monthly cash kickbacks and bribes in exchange for collecting samples from Medicare patients and sending them for genetic tests to clinical laboratories in New Jersey and Pennsylvania. The cash kickbacks ranged up to $5,000, and the Kurtzers typically accepted the cash in one of Yitzchok Kurtzer’s offices, at times behind locked doors. At one point, the Kurtzers complained that they were not getting paid enough and negotiated for higher kickbacks and bribes.
The Kurtzers were recorded receiving and discussing many of their kickback and bribe payments. After Yitzchok Kurtzer accepted a $5,000 cash kickback, he counted the money and said, “Perfect. Didn’t short me.”
The Kurtzers used their employees in the scheme, including Harris and Kennedy, who each helped collect the DNA swabs in exchange for payments to them. Robin Kurtzer was recorded admitting that Harris and Kennedy should not have to be “bribed” to do their work, but Robin Kurtzer said that she had no trouble “giving them money” as long as they produced results.
Yitzchok Kurtzer correlated genetic test swab collection to bribe and kickback payments, regardless of medical necessity. He instructed his staff to stop collecting genetic test swabs when he missed receiving a bribe and kickback payment, and he increased the volume of genetic test swabs when the kickback and bribe payments resumed. He admitted in a recording that he provided a patient false information to get the patient to agree to be swabbed for a genetic test. And unless a patient actively sought their genetic test results, Yitzchok Kurtzer failed to review or otherwise use those results.
Even as the ongoing COVID-19 pandemic substantially reduced in-patient visits, the Kurtzers continued their scheme. They went from receiving hand-delivered cash kickbacks and bribes to accepting payments by wire and through a cell phone money-transfer app. Yitzchok Kurtzer also offered to pay one of his employees to collect genetic test swabs from all of his patients who lived in nursing homes.
As a result of these schemes, Medicare was billed over $1.3 million for tests generated from Yitzchok Kurtzer’s practice.
The indictment contains the following charges:
Counts
Defendants
Charge
1
Yitzchok Kurtzer
Robin Kurtzer
Kickback Conspiracy
2 – 4
Yitzchok Kurtzer
Robin Kurtzer
Violations of the Anti-Kickback Statute
5 – 7
Yitzchok Kurtzer
Robin Kurtzer
Illegal Remunerations for Referrals to Laboratories
8 – 10
Yitzchok Kurtzer
Robin Kurtzer
Travel Act
11
Yitzchok Kurtzer
Health Care Fraud
The kickbacks, illegal remunerations, and health care fraud charged in Counts 2 through 7 and 11 are each punishable by a maximum of 10 years in prison. The kickback conspiracy and Travel Act charges in Counts 1 and 8 through 10 are each punishable by a maximum of five years in prison. All 11 counts are also punishable by a $250,000 fine, or twice the gross gain or loss from the offense.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark; and U.S. Department of Health and Human Services, Office of Inspector General, Philadelphia Regional Office, under the direction of Special Agent in Charge Maureen R. Dixon, with the investigation leading to the charges. She also thanked the FBI Scranton Field Office, FBI Philadelphia Division, and the Pennsylvania Attorney General’s Office for their assistance.
The government is represented by Assistant U.S. Attorney Joshua L. Haber of the Health Care Fraud Unit and Acting Principal Assistant U.S. Attorney Rahul Agarwal.
The charges and allegations against Yitzchok Kurtzer and Robin Kurtzer are merely accusations, and they are presumed innocent unless and until proven guilty.
Department of Justice Announces Launch of Firearms Trafficking Strike Forces to Crack Down on Sources of Crime GunsRead the Press Release
FAIRVIEW HEIGHTS, Ill. – The U.S. Department of Justice today launched five cross-jurisdictional
strike forces to help reduce gun violence by disrupting illegal firearms trafficking in key regions
across the country. Leveraging existing resources, the regional strike forces will
better ensure sustained and focused coordination across jurisdictions and help stem the supply of illegally trafficked firearms from source cities, through other communities, and into five key
market regions: New York, Chicago, Los Angeles, the San Francisco Bay Area/Sacramento Region and Washington, D.C.
Each strike force region will be led by designated United States Attorneys, who will collaborate
with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and with state and
local law enforcement partners within their own jurisdiction (where firearms are used in crimes)
as well as law enforcement partners in areas where illegally trafficked guns originate. These
officials will use the latest data, evidence, and intelligence from crime scenes to
identify patterns, leads, and potential suspects in violent gun crimes.“All too often, guns found at crime scenes come from hundreds or even thousands of miles away. We are redoubling our efforts as ATF works with law enforcement to track the movement of illegal firearms used in violent crimes. These strike forces enable sustained coordination across multiple jurisdictions to help disrupt the worst gun trafficking corridors,” said Attorney General Merrick B. Garland. “The Department of Justice will use all of its tools – enforcement, prevention, intervention, and investment – to help ensure the safety of our communities – the department’s highest priority.”
According to gun trace data, a significant number of firearms recovered in Chicago originate
outside the Chicago area. The new strike force will help ensure sustained and focused coordination
between law enforcement and prosecutors in Chicago and their counterparts in those other
locations. The Southern District of Illinois stands ready to assist in these efforts as needed.The strike forces represent one important, concrete step in implementing the
Department’s Comprehensive Violent Crime Reduction Strategy, which was announced on May
26, 2021. The comprehensive strategy supports local communities in preventing, investigating, and
prosecuting gun violence and other violent crime—and requires U.S. Attorneys’ offices to work with
federal, state, local and tribal law enforcement, as well as the communities they serve,
to address the most significant drivers of violence in their districts. In guidance to federal
agents and prosecutors as part of that comprehensive strategy, the Deputy Attorney General made
clear that firearms traffickers
providing weapons to violent offenders are an enforcement priority across the country.Since April 2021, the Department has taken the following steps to reduce and prevent violent crime,
especially the gun crime that is often at the core of the problem:
• April 8, 2021 – Attorney General Garland, alongside President Biden, announced four
concrete steps for addressing gun violence: ATF would propose a new rule within 30 days to help
curb the proliferation of so-called ghost guns, ATF would propose a new rule within 60 days on
stabilizing braces used to convert pistols into short-barreled rifles, the Department would publish
model state extreme risk protection order legislation within 60 days; and ATF would begin preparing
a thorough and detailed new public study of firearms trafficking for the first time in 20 years.• In April 2021, the Office of Justice Programs also made clear when existing grant
funds could be used to support Community Violence Intervention (CVI) programs.• On May 7, 2021, meeting the Attorney General’s announced timeline, ATF issued a
notice of proposed rulemaking to update outdated firearms definitions and to help address the
proliferation of ghost guns.• May 26, 2021, the Attorney General announced the Department’s comprehensive strategy
to reduce violent crime, including an overall Department Violent Crime Reduction Strategy, the
strengthening of Project Safe Neighborhoods (PSN), and a directive to U.S. Attorneys to work with
their local partners in addressing the increase in violence that typically occurs over the summer
(with specific support from DOJ law enforcement agencies)• On June 7, meeting the Attorney General’s announced timeline, ATF issued a notice of
proposed rulemaking to clarify that the restrictions imposed by the National Firearms Act apply
when stabilizing braces are used to convert pistols into short-barreled rifles.• On June 8, meeting the Attorney General’s announced timeline, the Department
published model state extreme risk protection order legislation.• On June 22, 2021, the Attorney General announced that the Department would be
forming five Firearms Trafficking Strike Forces within 30 days.On, June 23, 2021, the Attorney General, alongside President Biden, announced steps that ATF would take to hold rogue gun dealers accountable for their actions. They include applying a “no
tolerance” policy for federal firearms licensers (FFLs) that willfully commit violations
that endanger public safety; designating points of contact for state and local government
officials to report concerns about rogue FFLs; formalizing the use of public safety factors
for inspection prioritization; sharing inspection information with states that regulate
firearms dealers themselves; resuming the practice of notifying revoked dealers on how to
dispose of their inventory and the potential criminal consequences of continuing to engage
in the business; increasing ATF’s resources for inspections;and publicly posting disaggregated inspection information to ATF’s website.
Department of Justice Announces Launch of Firearms Trafficking Strike Forces to Crack Down on Sources of Crime GunsRead the Press Release
ALEXANDRIA, Va. – The U.S. Department of Justice has launched five cross-jurisdictional strike forces to help reduce gun violence by disrupting illegal firearms trafficking in key regions across the country. Leveraging existing resources, the regional strike forces will better ensure sustained and focused coordination across jurisdictions and help stem the supply of illegally trafficked firearms from source cities, through other communities, and into five key market regions: New York, Chicago, Los Angeles, the San Francisco Bay Area/Sacramento Region, and Washington, D.C.
Each strike force region will be led by designated United States Attorneys, who will collaborate with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and with state and local law enforcement partners within their own jurisdiction (where firearms are used in crimes), as well as law enforcement partners in areas where illegally trafficked guns originate. These officials will use the latest data, evidence, and intelligence from crime scenes to identify patterns, leads, and potential suspects in violent gun crimes.
“All too often, guns found at crime scenes come from hundreds or even thousands of miles away. We are redoubling our efforts as ATF works with law enforcement to track the movement of illegal firearms used in violent crimes. These strike forces enable sustained coordination across multiple jurisdictions to help disrupt the worst gun trafficking corridors,” said Attorney General Merrick B. Garland. “The Department of Justice will use all of its tools – enforcement, prevention, intervention, and investment – to help ensure the safety of our communities – the department’s highest priority.”
According to gun trace data, a significant number of firearms recovered in Washington, D.C. originate from outside the city. The new strike force will help ensure sustained and focused coordination between law enforcement and prosecutors in the Washington, D.C., metropolitan area, including in the Eastern District of Virginia, with their counterparts in locations where many of the firearms originate.
Acting U.S. Attorney Raj Parekh said: “Disrupting the flow of illegally trafficked firearms is critical to reducing the painful toll that gun violence inflicts on our communities and loved ones. Through our participation in the cross-jurisdictional strike force, EDVA will bring to justice gun traffickers and others who enable this tragic cycle of violence. We will also amplify our community engagement efforts to continue building the degree of trust that is required for positive and lasting change to occur. Because many of the firearm source locations for the Washington, D.C., metropolitan area overlap with the source locations for firearms recovered in the New York City area, we will work closely with our New York City counterparts to help make our communities safer for everyone.”
The strike forces represent one important, concrete step in implementing the Department’s Comprehensive Violent Crime Reduction Strategy, which was announced on May 26, 2021. The comprehensive strategy supports local communities in preventing, investigating, and prosecuting gun violence and other violent crime—and requires U.S. Attorneys’ offices to work with federal, state, local, and tribal law enforcement, as well as the communities they serve, to address the most significant drivers of violence in their districts. In guidance to federal agents and prosecutors as part of that comprehensive strategy, the Deputy Attorney General made clear that firearms traffickers providing weapons to violent offenders are an enforcement priority across the country.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Department of Justice Announces Launch of Firearms Trafficking Strike Forces to Crack Down on Sources of Crime GunsRead the Press Release
Eastern District of Wisconsin to Participate in Cross-Jurisdictional Strike Force
Acting U.S. Attorney Richard G. Frohling of the Eastern District of Wisconsin joined the U.S. Department of Justice in announcing on July 22, 2021 the launch of five cross-jurisdictional strike forces to help reduce gun violence by disrupting illegal firearms trafficking in key regions across the country. Leveraging existing resources, the regional strike forces will better ensure sustained and focused coordination across jurisdictions and help stem the supply of illegally trafficked firearms from source cities, through other communities, and into five key market regions: New York, Chicago, Los Angeles, the San Francisco Bay Area/Sacramento Region, and Washington, D.C.
Each strike force region will be led by designated United States Attorneys, who will collaborate with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and with state and local law enforcement partners within their own jurisdiction (where firearms are used in crimes), as well as with law enforcement partners in areas where illegally trafficked guns originate. These officials will use the latest data, evidence, and intelligence from crime scenes to identify patterns, leads, and potential suspects in violent gun crimes.
“All too often, guns found at crime scenes come from hundreds or even thousands of miles away. We are redoubling our efforts as ATF works with law enforcement to track the movement of illegal firearms used in violent crimes. These strike forces enable sustained coordination across multiple jurisdictions to help disrupt the worst gun trafficking corridors,” said Attorney General Merrick B. Garland. “The Department of Justice will use all of its tools – enforcement, prevention, intervention, and investment – to help ensure the safety of our communities – the department’s highest priority.”
According to gun trace data, a significant number of firearms recovered in Chicago originate from outside the city, and many originate from the Eastern District of Wisconsin, among other locations. The new strike force will help ensure sustained and focused coordination between law enforcement and prosecutors in Chicago with their counterparts in those other locations.
The strike forces represent one important, concrete step in implementing the Department’s Comprehensive Violent Crime Reduction Strategy, which was announced on May 26, 2021. The comprehensive strategy supports local communities in preventing, investigating, and prosecuting gun violence and other violent crime—and requires U.S. Attorneys’ offices to work with federal, state, local, and tribal law enforcement, as well as the communities they serve, to address the most significant drivers of violence in their districts. In guidance to federal agents and prosecutors as part of that comprehensive strategy, the Deputy Attorney General made clear that firearms traffickers providing weapons to violent offenders are an enforcement priority across the country.
Department of Justice Efforts to Address Violent Crime
Since April 2021, the Department has taken the following steps to reduce and prevent violent crime, especially the gun crime that is often at the core of the problem:
· April 8, 2021 – Attorney General Garland, alongside President Biden, announced four concrete steps for addressing gun violence: ATF would propose a new rule within 30 days to help curb the proliferation of so-called ghost guns, ATF would propose a new rule within 60 days on stabilizing braces used to convert pistols into short-barreled rifles, the Department would publish model state extreme risk protection order legislation within 60 days; and ATF would begin preparing a thorough and detailed new public study of firearms trafficking for the first time in 20 years.
· In April 2021, the Office of Justice Programs also made clear when existing grant funds could be used to support Community Violence Intervention (CVI) programs.
· On May 7, 2021, ATF issued a notice of proposed rulemaking to update outdated firearms definitions and to help address the proliferation of ghost guns.
· May 26, 2021, the Attorney General announced the Department’s comprehensive strategy to reduce violent crime, including an overall Department Violent Crime Reduction Strategy, the strengthening of Project Safe Neighborhoods (PSN), and a directive to the U.S. Attorneys to work with their local partners in addressing the increase in violence that typically occurs over the summer (with specific support from DOJ law enforcement agencies).
· On June 7, 2021, ATF issued a notice of proposed rulemaking to clarify that the restrictions imposed by the National Firearms Act apply when stabilizing braces are used to convert pistols into short-barreled rifles.
· On June 8, 2021, the Department published model state extreme risk protection order legislation.
· On June 22, 2021, the Attorney General announced that the Department would be forming five Firearms Trafficking Strike Forces within 30 days.
· On, June 23, 2021, the Attorney General, alongside President Biden, announced steps that ATF would take to hold rogue gun dealers accountable for their actions. They include applying a “no tolerance” policy for federal firearms licensers (FFLs) that willfully commit violations that endanger public safety; designating points of contact for state and local government officials to report concerns about rogue FFLs; formalizing the use of public safety factors for inspection prioritization; sharing inspection information with states that regulate firearms dealers themselves; resuming the practice of notifying revoked dealers on how to dispose of their inventory and the potential criminal consequences of continuing to engage in the business; increasing ATF’s resources for inspections (see, FY 2022 Budget request); and publicly posting disaggregated inspection information to ATF’s website.
# # #
For Additional Information Contact:
Public Information Officer Kenneth Gales 414-297-1700
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Defendants plead guilty in cocaine-distribution scheme revealed after I-95 traffic stopRead the Press Release
BRUNSWICK, GA: Two men implicated in a cocaine-distribution scheme after a traffic stop have admitted guilt on federal charges.
Avon Shuttleworth, a/k/a “Havan,” 46, of Rosedale, N.Y., awaits sentencing after pleading guilty in U.S. District Court in the Southern District of Georgia to Possession with Intent to Distribute Cocaine, while Courtnay Anthony Drummond, 52, of Brunswick, Ga., awaits sentencing after pleading guilty to Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. The pleas subject the defendants to statutory sentences of five to 40 years in federal prison, along with substantial financial penalties, followed by a period of supervised release.
There is no parole in the federal system.
“It’s truly incredible how so many elaborate criminal schemes fall apart because of a simple traffic violation,” said Acting U.S. Attorney Estes. “Thanks to an alert Georgia State Patrol trooper and outstanding work from our law enforcement partners, an operation that moved kilos of illegal drugs in the northeastern United States has been brought to a halt.”
Beginning in March 2020, agents with the U.S. Drug Enforcement Administration, led by agents from the Savannah Resident Office, initiated an investigation of cocaine trafficking from Jamaica into the New York City area. As described in court documents and testimony, Drummond met with Shuttleworth and another conspirator on March 14, 2020, at Shuttleworth’s home in New York, when Drummond agreed to deliver two kilograms of cocaine to a buyer in Baltimore, Md. Drummond is a native of Jamaica and legal resident of the United States; Shuttleworth is a citizen of Jamaica.
On March 15, 2020, a Georgia State Patrol trooper pulled Drummond over on Interstate 95 in McIntosh County, Ga., for tailgating another vehicle, and during a subsequent search of the car troopers found the two kilogram bricks of cocaine. Drummond told investigators that he had been unable to contact the Maryland buyer and was headed to his then-home in Riviera Beach, Fla. Agents on a federal search warrant later searched Shuttleworth’s New York residence and found a ledger detailing drug transactions and a large press used to make kilo-sized drug bricks.
“This traffic stop led to the seizure of almost five pounds of cocaine, ensuring this dangerous and potentially deadly drug never reached the seller, and more importantly, the consumer,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Field Division. “This case was successful because of the hard work and dedication between DEA and its law enforcement partners.”
“This case demonstrates the success of collaborative efforts between state and federal agencies,” said Vic Reynolds, Director of the Georgia Bureau of Investigation. “We continue to work with our partners to investigate drug trafficking and keep Georgia safe.”
The case is being investigated by the DEA, including agents from the DEA Atlanta Field Division Savannah Resident Office and New York DEA Task Force Group 43, and the Georgia Bureau of Investigation, with assistance from the Georgia State Patrol, and is being prosecuted for the United States by Assistant U.S. Attorney Jennifer G. Solari.
Council Bluffs Businessman Convicted of Sex TraffickingRead the Press Release
COUNCIL BLUFF, IA – On Friday, July 23, 2021, Hershal James Ratliff, age 71, long time businessman and owner of Jimmy’s All American Malt Shop and Grill in Council Bluffs, Iowa, was found guilty of four counts of sex trafficking minors, two counts of sex trafficking adults and two counts of distributing a controlled substance to a person under twenty-one years of age. The verdict came after a four-day trial before United States District Court Chief Judge John A. Jarvey.
Evidence presented at trial showed that RATLIFF, over the last ten years, would have minor girls come to his house an perform sex acts on him and with his friends in exchange for money, drugs, and other material things. The testimony showed that Ratliff provided the minor girls with alcohol, prescription Xanax, and marijuana both before and after they participated in sex acts at his residence.
In addition, the evidence showed that Ratliff obtained sex acts for his friends from adult women by the use of force and coercion. No sentencing date has been set.
The investigation was conducted by the Council Bluffs Police Department with the assistance of the Federal Bureau of Investigation.
Acting U.S. Attorney Richard D. Westphal of the Southern District of Iowa made the announcement.
Convicted Felon Sentenced to Five Years in Federal Prison for Possessing Five FirearmsRead the Press Release
Tampa, Florida – U.S. District Judge William Jung has sentenced Christopher Calkins (29, St. Petersburg) to five years in federal prison for possessing firearms and ammunition as a convicted felon. The court also ordered Calkins to forfeit the firearms and ammunition involved in the offense.
Calkins had pleaded guilty on January 22, 2020.
According to court documents, on October 11, 2018, law enforcement officers executed a narcotics-related search warrant at Calkins’ home, where the officers seized 12 pounds of marijuana, $7,900 in cash, five loaded firearms (including two assault rifles), and 63 rounds of additional ammunition. The firearms were located out in the open and unsecured and Calkins was babysitting a small child at the time. Calkins later confessed to possessing the marijuana, the firearms, and the ammunition. Because Calkins had a prior felony conviction he was and is prohibited from possessing firearms or ammunition.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pinellas County Sheriff’s Office, and the St. Petersburg Police Department. It was prosecuted by Assistant United States Attorney Charlie D. Connally.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
California Man Sentenced for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that DAVID MORA, age 60, a resident of California, was sentenced on July 22, 2021 to 120 months imprisonment by United States District Court Judge Barry W. Barry Ashe for conspiracy to distribute and distribution of 100 grams or more of a mixture or substance containing heroin as well as one kilogram or more of a mixture or substance containing fentanyl. Additionally, MORA was ordered to serve five years of supervised release and pay a $100 special assessment fee. No fines were imposed in this case.
According to court records, in November 2019, during an investigation by the United States Drug Enforcement Administration, co-defendant, Zoraida Lara, a/k/a Zoraida Trinidad, communicated with a special agent working in an undercover capacity about the transportation of illegal narcotics to the New Orleans, LA area. Shortly after their conversation, LARA arranged for MORA to deliver the narcotics to the New Orleans area. MORA delivered the narcotics, which included 959.4 grams of heroin and 1402.2 grams of fentanyl and he was subsequently arrested. LARA flew from California to New Orleans to collect payment for the illegal narcotics and was subsequently arrested upon her arrival.
The case was investigated by the Drug Enforcement Administration, with the assistance of the Louisiana State Police. Assistant United States Attorney Bayonle Osundare oversaw the prosecution.
* * *
California Man Charged with Violations of Federal Narcotics LawsRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that JOEL ALEXANDER FABRE, age 33, of California, was charged with possession with intent to distribute methamphetamine.
According to the indictment, between March 16, 2021 and March 20, 2021, FABRE, shipped a pound of methamphetamine via USPS. FABRE received $3000.00 for the methamphetamine via a MoneyGram, in violation of Title 21 United States Code, Section 841(a)(1) and 841(b)(1)A), possession with the intent to distribute methamphetamine.
U. S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
If convicted, FABRE faces a maximum term of imprisonment of life, a fine of up to $10,000,000 and at least five years of supervised release after imprisonment, as well as a $100 special assessment.
U. S. Attorney Evans praised the work of the Homeland Security Investigations in investigating this matter. The case is being prosecuted by Assistant United States Attorney Maurice E. Landrieu, Jr.
Bond Denied for Alleged 77th Street Gang Member Charged with Federal Gun and Covid-19 Fraud CrimesRead the Press Release
Miami, Florida – Reversing a federal magistrate judge’s ruling, United States District Judge Robert N. Scola, Jr. has ordered that Kenny Terlent, 19, will remain in a federal detention center without bond pending his trial on charges of illegally possessing a machine gun, identity theft, and Covid-19 benefit related fraud.
According to the indictment and criminal complaint affidavit filed in his case, Terlent and other members of the 77th Street gang exploited programs that offered unemployment compensation benefits to people suffering Covid-19-related job loss. As part of their scheme, Terlent and his co-conspirators obtained stolen identities (names, social security numbers, dates of birth and other personal sensitive information) from the dark web and other sources, says the affidavit. With the stolen identities, Terlent and his co-conspirators filed for unemployment compensation benefits meant for individuals who had lost jobs during the Covid-19 pandemic, then used bank cards in other people’s names to collect the money and transfer it to bank accounts that they controlled, it is alleged.
On June 24, law enforcement officers executed a federal search warrant at Terlent’s residence. According to the affidavit, Terlent ran from officers who approached him outside and threw his cellular telephone into a nearby lake. Law enforcement recovered the phone, searched it pursuant to a warrant, and found that it contained stolen identity information. Inside Terlent’s home, in addition to other evidence of fraud, officers found a stolen Glock 19 handgun with an auto-sear device affixed to it, says the affidavit. When installed on a handgun, an auto-sear, colloquially called a “switch,” allows a handgun to expel more than one bullet by a single pull of the trigger, turning the weapon into a fully automatic machine gun. Terlent does not have a permit to possess a machine gun, according to the charges.
Law enforcement officers arrested Terlent, and a South Florida federal grand jury returned an indictment charging him with possessing 15 or more unauthorized access devices, aggravated identity theft, and the illegal possession of a machine gun.
Juan Antonio Gonzalez, Acting U.S. Attorney for the Southern District of Florida, Brian Swain, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Robert Cekada, Special Agent in Charge, Bureau of Alcohol Tobacco Firearms and Explosives (ATF), Miami Field Office, announced the charges.
A multi-agency gang task force consisting of the Miami Divisions of USSS, FBI, and ATF, as well as the Miami-Dade Police Department (MDPD) and City of Miami Police Department (MPD) investigated the matter.
AUSA Frederic “Fritz” Shadley is prosecuting this case.
This case stems from Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. In 2017, PSN was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Anyone with information related to possible gun crimes is asked to call Crime Stoppers at 305-471-TIPS.
This case also stems from the Department of Justice’s efforts to combat Covid-19 fraud. On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Indictments and criminal complaints are mere allegations. A defendant is presumed innocent until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 21-cr-20380.
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Beckley Man Pleads Guilty to Heroin DistributionRead the Press Release
BECKLEY, W.Va. – William David Reid, 46, of Beckley, pleaded guilty today to distribution of a quantity of heroin.
According to court documents, Reid sold a quantity of heroin to a confidential informant in Beckley on August 3, 2020. As part of the plea, Reid also admitted to possessing approximately 20 grams of methamphetamine on August 12, 2020 that he intended to distribute in and around Raleigh County.
Reid faces up to 20 years in prison when he is sentenced on November 5, 2021.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Beckley/Raleigh County Drug and Violent Crime Unit, the Raleigh County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney Timothy D. Boggess is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:20-cr-00156.
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Beckley Man Pleads Guilty to Federal Drug CrimeRead the Press Release
BECKLEY, W.Va. – Zachary Mitchem, 36, of Beckley, pleaded guilty today to possession with the intent to deliver methamphetamine and heroin.
According to court documents, Mitchem was found passed out in a car parked in front of a local business near Beckley on July 5, 2019. When a law enforcement officer came to check on Mitchem, she observed what she suspected to be controlled substances in Mitchem’s car. The officer then conducted a search of the car and found approximately 21 grams of methamphetamine and approximately 14 grams of heroin. The officer also found a gun which Mitchem was prohibited from possessing due to previous felony convictions. After his arrest, Mitchem admitted that he intended to distribute the drugs in and around Raleigh County.
Mitchem faces up to 20 years in prison when he is sentenced on November 5, 2021.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Beckley Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney Timothy D. Boggess is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:20-cr-00032.
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Amazon Marketplace Seller Pleads Guilty to Price Fixing DVDs and Blu-ray DiscsRead the Press Release
A Tennessee man pleaded guilty today to fixing the prices of DVDs and Blu-ray Discs sold on Amazon Marketplace.
According to court documents filed in Knoxville, David Camp was charged with conspiring with others to fix prices of DVDs and Blu-ray Discs sold through Amazon Marketplace. The price-fixing conspiracy was ongoing from at least as early as May 2018 until at least Oct. 29, 2019. Camp is the first individual to be charged and the first individual to plead guilty in the ongoing investigation.
“American consumers deserve the benefits of competitive pricing, whether they’re shopping in brick-and-mortar stores or in an online marketplace,” said Acting Assistant Attorney General Richard A. Powers of the Justice Department’s Antitrust Division. “By their actions, the defendant and his co-conspirators denied purchasers of DVDs and Blu-ray Discs free and open competition, and instead lined their own pockets. The division remains dedicated to safeguarding online sales from collusion, especially as online shopping becomes increasingly ubiquitous.”
According to the one-count information, Camp and his co-conspirators agreed to raise and maintain the prices of DVDs and Blu-rays sold in their Amazon Marketplace stores. Amazon Marketplace is an e-commerce platform that enables third-party vendors to sell new or used products alongside Amazon’s own offerings. Amazon Marketplace is owned and operated by Amazon.com Inc.
“Honest, competitive pricing of goods allows consumers to purchase products at fair market value, which provides an overall benefit to the individual customer and the market as a whole,” said Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office. “Partnering with competitors to fix prices of goods at higher-than-necessary rates removes this protection for consumers — it’s also illegal, whether it happens on an online platform or in a face-to-face transaction. Today’s guilty plea should remind other like-minded individuals that they will eventually have to answer for this type of behavior.”
“Activities related to collusion, bid rigging and market allocation do not promote an environment conducive to open competition, which harms the consumer,” said Acting Executive Special Agent in Charge Steven Stuller of the U.S. Postal Service (USPS) Office of Inspector General. “Along with the Department of Justice and our federal law enforcement partners, the USPS Office of Inspector General will aggressively investigate those who would engage in this type of harmful conduct.”
A criminal violation of the Sherman Act carries a maximum sentence of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Antitrust Division’s Chicago Office is prosecuting the case, which was investigated with the assistance of the FBI’s New York Field Office and the USPS Office of Inspector General’s Great Lakes Regional Investigations Office in Chicago.
Anyone with information concerning price fixing or other anticompetitive conduct related to the sale of DVDs, Blu-rays or products sold through Amazon Marketplace should contact the Antitrust Division’s Chicago Office at 312-984-7200, the Citizen Complaint Center at 888-647-3258, www.justice.gov/atr/contact/newcase.html, or the FBI’s New York Field Office at 212-384-1000.
Accused Levelland Shooter Federally ChargedRead the Press Release
The man who allegedly shot and killed a SWAT officer during a standoff in Levelland, Texas earlier this month has been charged with assaulting a federal officer who responded to the scene, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Omar Soto-Chavira, 22, was charged via criminal complaint on Friday with one count of forcibly assaulting a federal officer engaged in the performance of official duties. Mr. Soto-Chavira has also been charged by the state with capital murder.
“The state acted swiftly to charge Mr. Soto-Chavira in the murder of Lubbock County Sheriff’s Office Sgt. Josh Bartlett. Were Mr. Soto-Chavira to post the $500,000 bond set in the state case, he would be immediately transferred to federal custody, where criminal defendants can be detained without bond, ” said Acting U.S. Attorney Prerak Shah. “We believe this defendant is a threat to the community, and needs to be kept behind bars. We mourn the loss of Sgt. Bartlett, who served with honor for nine years, and we pray for the other officers who were wounded in the standoff, including Sgt. Shawn Wilson.”
Local law enforcement has confirmed that during the almost 11-hours standoff, the defendant repeatedly opened fire at agents and officers. Lubbock County Sheriff’s Department Sgt. Josh Bartlett was shot in the neck and killed; Levelland Police Sgt. Shawn Wilson was shot in the head and rushed to the hospital, where he remains in critical condition; and two other officers were also shot and wounded.
Though the federal criminal complaint against Mr. Soto-Chavira remains sealed, the federal arrest warrant was unsealed shortly after it was filed this morning.
A complaint is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Soto-Chavira is presumed innocent until proven guilty.
If convicted in the federal case, he faces up to 20 years in federal prison. He faces a potential death sentence if convicted on state charges.
The Levelland Police Department, Lubbock County Sheriff’s Office SWAT, and Lubbock Police Department SWAT conducted the investigation with the assistance of Homeland Security Investigations, the Federal Bureau of Investigation’s Dallas Field Office, the Bureau of Alcohol, Tobacco, Firearms, & Explosives’ Dallas Field Division, the Drug Enforcement Administration’s Dallas Field Division, the Texas Department of Public Safety, the Texas Rangers, and the Hockley County District Attorney's Office. Assistant U.S. Attorney Sean Long is prosecuting the federal case.
Accountant Sentenced to More Than Eight Years in Prison for Misappropriating $1.1 Million from Employers and LendersRead the Press Release
CHICAGO — A suburban Chicago accountant has been sentenced to more than eight years in federal prison for misappropriating more than $1.1 million from four employers and three lending institutions.
PAUL ERIC COLLINS, 55, of Naperville, Ill., pleaded guilty last year to wire fraud. U.S. District Judge Elaine E. Bucklo imposed a 98-month prison sentence Wednesday after a hearing in federal court in Chicago. Judge Bucklo also ordered Collins to pay $1,159,414 in restitution to the victims.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.
“Collins stole funds from his employers, even though he knew that they desperately needed those funds to operate their businesses,” Assistant U.S. Attorney Jacqueline Stern argued in the government’s sentencing memorandum. “Collins stole from the victims for his own wholly selfish ends.”
Collins was an accountant who handled the finances for four employers from 2013 to 2018. During that time, Collins stole more than $1 million from the companies by writing corporate checks to himself, his wife, and phony companies he created. Collins also fraudulently withdrew money from ATMs and charged personal expenses on company credit cards. He attempted to conceal the thefts by making Ponzi-type payments to certain victims.
Collins also stole more than $70,000 from three lenders by obtaining loans based on false representations. Collins fraudulently used the identity of one of his employer’s owners and falsely represented that the owner personally guaranteed the loans. When Collins failed to repay the full amount of the loans and the lenders sought repayment, the owner was left having to dispute the fraudulent guarantee.
Abbeville Man Sentenced to Federal Prison for Possessing FirearmRead the Press Release
LAFAYETTE, La. - Acting United States Attorney Alexander C. Van Hook announced that Scott Grigsby, 41, of Abbeville, Louisiana, was sentenced today by United States District Judge Robert R. Summerhays to 102 months (8 years, 6 months) in prison, followed by 3 years of supervised release.
A federal grand jury returned a one-count indictment charging Grigsby with being a convicted felon in possession of a firearm and he pleaded guilty to the charge on April 9, 2021. According to information presented in court, on January 28, 2020, deputies with the Vermilion Parish Sheriff’s Office Narcotics Task Force were conducting surveillance of a residence in Kaplan, Louisiana and observed a vehicle being driven by Grigsby arrive at the residence. Law enforcement officers approached the vehicle and Grigsby attempted to flee the area driving at a high rate of speed in reverse. His vehicle struck a marked police unit and lost control and came to rest in a ditch. Officers arrested Grigsby and his passenger. Grigsby admitted to police that he had thrown a firearm out of the window of the car while attempting to flee. After a brief search of the area, officers located the 9mm pistol near the vehicle in the ditch.
As a convicted felon, Grigsby is prohibited from possessing any firearms or ammunition. His prior felony convictions were for possession with intent to distribute methamphetamine (2017); identity theft, simple burglary, and aggravated flight from an officer (2010); and simple robbery (2003).
The ATF and Vermilion Parish Sheriff’s Office Narcotics Task Force conducted the investigation. Assistant U.S. Attorney Craig R. Bordelon prosecuted the case.
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Thursday 22 July 2021
Worcester Man Pleads Guilty to Purchasing MBTA Passes Using Others' IdentitiesRead the Press Release
BOSTON – A Worcester man pleaded guilty yesterday to charges of wire fraud and aggravated identity theft in connection with using stolen identities to fraudulently purchase MBTA passes.
Kokou Kuakumensah, 31, pleaded guilty to one count of wire fraud and four counts of aggravated identity theft. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Nov. 10, 2021. Kuakumensah was arrested and charged on Jan. 13, 2021.
Between approximately January 2019 and March 2020, Kuakumensah used other individuals’ credit card accounts to fraudulently purchase Massachusetts Bay Transportation Authority (MBTA) commuter rail passes. Kuakumensah purchased the passes using stolen credit card numbers at MBTA fare kiosks. Kuakumensah then re-sold these fraudulently-obtained passes for less than their face value in a variety of ways, including advertising them on Craigslist. Kuakumensah sold the passes at MBTA stations, including the station in Grafton. The combined value of the passes Kuakumensah fraudulently obtained was approximately $157,000.
The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutively to any other sentenced imposed. 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; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; and Chief Kenneth Green of the MBTA Transit Police made the announcement today. Assistant U.S. Attorney John T. Mulcahy of Mendell’s Worcester Branch Office is prosecuting the case.
West Virginia Man Charged with Making False Statements to FBIRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that on July 21, 2021, Christopher B. Tolley, age 35, of Hinton, West Virginia, was charged in a criminal information with making false statements to the Federal Bureau of Investigation (FBI).
According to Acting United States Attorney Bruce D. Brandler, the information alleges that on May 22, 2019, Tolley represented to a task force officer with the FBI that he was unaware of a bank account held in his name at Sun Trust Bank. That statement allegedly was false, because Tolley had personally opened the bank account and deposited a stolen check for $95,154.54 into the account.
The case was investigated by the FBI. Assistant U.S. Attorney Phillip J. Caraballo is prosecuting the case.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is five years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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West Texas Man Sentenced to 30 Years for Pornographic Image of 11-Year-Old RelativeRead the Press Release
A Muleshoe, Texas man who sexually exploited an 11-year-old girl was sentenced today to 30 years in federal prison for child pornography, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
In April, after two days of trial, a federal jury found 25-year-old Felipe Mata-Benavidez guilty of production of child pornography. He was sentenced Thursday by U.S. District Judge James Wesley Hendrix.
According to evidence presented at trial, Mr. Mata-Benavidez attempted to sexually assault an 11-year-old relative at her home in Muleshoe. During the assault, the victim’s mother walked in on Mr. Mata-Benavidez attempting to have sexual intercourse with the minor.
The young girl’s mother stopped the assault and fled the residence with her daughter. A short time later, a concerned neighbor notified law enforcement after hearing about the incident.
The Muleshoe Police Department then interviewed Mr. Mata-Benavidez. He showed detectives his cell phone, which contained his messages with the young girl.
In those messages, Mr. Mata-Benavidez instructed the 11-year-old to send him explicit photographs of herself. When she refused, Mr. Mata-Benavidez bullied the girl until she conceded, texting Mr. Mata-Benavidez a lewd image. He said the child was beautiful and told her not to “share with anybody else… because it’s mine.”
The defendant then continued to ask the 11-year-old to send him more explicit images.
The Federal Bureau of Investigation’s Dallas Field Office, Lubbock Resident Agency, the Muleshoe Police Department, and Homeland Security Investigations - Lubbock Computer Forensic Analysts conducted the investigation. Assistant U.S. Attorneys Callie Woolam and Matthew McLeod prosecuted the case.
Waterbury Man Sentenced to 5 Years in Federal Prison for Drug and Gun OffensesRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that ALEJANDRO VELEZ, 41, of Waterbury, was sentenced yesterday by U.S. District Judge Janet C. Hall in New Haven to 60 months of imprisonment, followed by four years of supervised release, for narcotics distribution and firearm possession offenses.
According to court documents and statements made in court, in January 2020, Waterbury Police made two controlled purchases of cocaine from Velez. Velez was arrested on January 29, 2020. On that date, a search of his residence revealed more than 200 grams of cocaine, quantities of crack cocaine and marijuana, and approximately $5,900 in cash. A search of Velez’s car, which was parked at the residence, revealed approximately 840 grams of cocaine, two loaded firearms, gun magazines, and five boxes of ammunition.
Velez’s criminal history includes convictions for felony drug and firearm offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On March 24, 2021, Velez pleaded guilty to one count of possession with intent to distribute cocaine base and 500 grams or more of cocaine, and one count of possession of a firearm by a convicted felon.
Velez, who is released on bond, is required to report to prison on August 25, 2021.
This matter was investigated by the Waterbury Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant U.S. Attorney Natasha Freismuth.
Vineland Boys Gang Member Sentenced to 31 Years in Federal Prison for Racketeering Conspiracy, Attempted Murder of Rival GangstersRead the Press Release
LOS ANGELES – A member of the San Fernando Valley-based Vineland Boys street gang was sentenced today to 372 months in federal prison for committing multiple felonies, including the attempted murders of three rival gangsters.
Jesus Gonzalez Jr., 28, “Lil Chito,” “Gunner” and “Chuy,” of Sun Valley, was sentenced by United States District Judge Michael W. Fitzgerald.
Gonzalez pleaded guilty on January 22 to five felonies: one count of conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act, two counts of violent crime in aid of racketeering, one count of conspiracy to distribute controlled substances, and one count of discharging a firearm in furtherance of a crime of violence.
According to court documents, to consolidate control over their “territory” in Sun Valley, North Hollywood and Burbank, the Vineland Boys shot and brutally assaulted rival gang members, controlled and conducted drug and firearms trafficking activity, and extorted money in the form of “taxes” from drug dealers, and trafficked narcotics.
Gonzalez conspired with Vineland Boys members and associates to engage in acts of racketeering in the form of attempted murder and drug trafficking. Gonzalez admitted that he was involved in multiple gang-related shootings, including a December 2015 shootout in South Los Angeles with rival gang members.
In early April 2016, Gonzalez shot and severely wounded one victim and injured others in a drive-by shooting outside a party in Sun Valley after Gonzalez believed the victim had insulted the Vineland Boys gang. A few weeks later, Gonzalez stalked and shot a rival gang member on Lankershim Boulevard in North Hollywood, firing several shots at close range at the victim, who survived. In May 2016, Gonzalez and other Vineland Boys members drove next to a vehicle in North Hollywood near Lankershim Boulevard, and Gonzalez confronted and shot the other vehicle’s passengers because he believed they were rival gang members.
Gonzalez also sold methamphetamine and illegally sold numerous firearms, including an AR-style rifle bearing no serial number – commonly known as a “ghost gun” – that he sold in May 2016 outside a McDonald’s restaurant in San Fernando.
In January 2019, a federal grand jury indicted 31 Vineland Boys members and associates. So far, prosecutors in this case have secured 17 convictions and multiple prison sentences exceeding 10 years.
The FBI, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, IRS Criminal Investigation and the Los Angeles Police Department investigated this matter. This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Assistant United States Attorneys Jennifer Chou and Sara Milstein of the Violent and Organized Crime Section prosecuted this case.
United States Seizes Funeral Scrolls and Manuscripts Taken from Pre-Holocaust Jewish Communities in Eastern EuropeRead the Press Release
Jacquelyn Kasulis, Acting United States Attorney for the Eastern District of New York, and Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), announced today the seizure of 17 Jewish Funeral Scrolls, Pinkas Manuscripts (“Scrolls and Manuscripts”) and Community Records that had been taken from Jewish communities in Romania, Hungary, Ukraine and Slovakia during World War II. The Scrolls and Manuscripts, which date from the mid-19th century to World War II, were confiscated from Jewish communities and disappeared during the Holocaust. The artifacts were found through a Brooklyn auction house that offered them for sale, as well as a consigner and a purchaser. Three additional artifacts are believed to be in Israel and one in upstate New York.
“The Scrolls and Manuscripts that were illegally confiscated during the Holocaust contain priceless historical information that belongs to the descendants of families that lived and flourished in Jewish communities before the Holocaust. This Office hopes that today’s seizure will contribute to the restoration of pre-Holocaust history in Eastern Europe.” stated Acting U.S. Attorney Kasulis. “I commend the efforts of this Office’s Civil Division and HSI in recovering these important religious artifacts.”
“The recovery of these 19th century Judaica Manuscripts and Scrolls looted during the Holocaust from Romania, Hungary, Slovakia, and Ukraine in the midst of our world’s darkest of times, is the culmination of an extensive HSI cultural property investigation, and we are fortunate to be part of the team that is able to return these artifacts to their rightful Jewish communities,” stated HSI Special Agent-in-Charge Fitzhugh. “The HSI NY Cultural Property, Art & Antiquities Investigations unit works tirelessly with the United States Attorney’s Office for the Eastern District of New York to investigate the looting, theft and sale of critical pieces of history, and will continue to bring to justice the individuals and transnational criminal organizations who profit from the trafficking of these cultural treasures.”
As set forth in the search warrant affidavit, in February 2021, law enforcement learned that an auction house located in the Eastern District of New York had offered for sale 21 Manuscripts and Scrolls originating from Jewish communities that existed before World War II and the Holocaust. The members of those communities from which the Scrolls and Manuscripts were taken had been gathered in ghettos, robbed of their property and deported to Nazi death camps, where the majority of them were killed. After the end of World War II, surviving members of the communities returned to find their homes ransacked and buildings emptied of property. Among the items that were stolen were the Scrolls and Manuscripts that contained information related to the Jewish communities from as early as 1840 and up through and including the Holocaust. These Scrolls and Manuscripts contained prayers for the dead, memorial pages and/or the names of deceased members of the Jewish communities, operating rules of the society, society member payments, obligations, society regulations, the identity of society religious leaders, and, in some cases, the names of the society members who were deported by the Nazis to the Auschwitz concentration camp. The Manuscripts and Scrolls were confiscated by individuals who had no right to do so during and after the Holocaust. Absent any provenance or documentation of conveyance from any survivors of those communities, there is no legitimate means by which the Manuscripts and Scrolls could have been imported into the United States.
The government’s case is being handled by Assistant United States Attorney Artemis Lekakis of the Office’s Civil Division and the investigation was conducted by Department of Homeland Security Agents Megan Buckley and Robert Mancene.
E.D.N.Y. Docket No.: 21-MJ-837 (PK)
United States Reaches Resolution of ADA Complaint with RC Theatres Management LLLPRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced a letter of resolution with RC Theatres Management LLLP, the owner and operator of Queensgate RC Theatres located in York, Pennsylvania. The agreement was reached under Title III of the Americans with Disabilities Act (“ADA”).
According to Acting United States Attorney Bruce D. Brandler, the United States Department of Justice received a complaint that the Queensgate RC Theatre was not accessible to individuals with visual impairments, namely the movie theater did not have descriptive audio headsets. After an investigation with the owner’s cooperation, the United States Attorney’s Office determined that the Queensgate RC Theatre failed to have the required descriptive audio headset for the visually impaired complainant.
Soon after RC Theatres received notice of the complaint, it took steps to come into compliance with the ADA by purchasing audio descriptive devices and by training employees on the use of the devices at this location. RC Theatres will continue to annually train theater employees. RC Theatres will also provide notice about the availability of these devices on their webpage.
“Owners of movie theaters must ensure that viewings of films comply with all requirements of the ADA, and that they provide equal access for all people,” said Acting U.S. Attorney Bruce D. Brandler. “RC Theatres quickly and cooperatively worked to address the ADA violations discovered during our investigation, which will enable visually impaired patrons to enjoy movies at the Queensgate location.”
Federal law requires public accommodations, including movie theaters, to provide individuals with disabilities equal access to facilities. The ADA authorizes the U.S. Department of Justice and the U.S. Attorney’s Office to undertake investigations and periodic reviews of covered establishments. For more information on the ADA, visit www.ADA.gov. Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report/. Anyone in the Middle District of Pennsylvania may also report civil rights violations to the Civil Rights coordinator of the U.S. Attorney’s Office for the Middle District of Pennsylvania by calling 717-614-4911 or emailing [email protected].
This case was handled by Assistant United States Attorney Michael J. Butler.
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U.S. Department of Justice Announces Launch of Firearms Trafficking Strike Forces to Crack Down on Sources of Crime GunsRead the Press Release
SAN FRANCISCO –The U.S. Department of Justice today launched five cross-jurisdictional strike forces to help reduce gun violence by disrupting illegal firearms trafficking in key regions across the country. Leveraging existing resources, the regional strike forces will better ensure sustained and focused coordination across jurisdictions and help stem the supply of illegally trafficked firearms from source cities, through other communities, and into five key market regions: New York, Chicago, Los Angeles, the San Francisco Bay Area/Sacramento Region and Washington, D.C.
Each strike force region will be led by designated United States Attorneys, who will collaborate with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and with state and local law enforcement partners within their own jurisdiction where firearms are used in crimes as well as with law enforcement partners in areas where illegally trafficked guns originate. Officials will use the latest data, evidence, and intelligence from crime scenes to identify patterns, leads, and potential suspects in violent gun crimes.
“All too often, guns found at crime scenes come from hundreds or even thousands of miles away. We are redoubling our efforts as ATF works with law enforcement to track the movement of illegal firearms used in violent crimes. These strike forces enable sustained coordination across multiple jurisdictions to help disrupt the worst gun trafficking corridors,” said Attorney General Merrick B. Garland. “The Department of Justice will use all of its tools – enforcement, prevention, intervention, and investment – to help ensure the safety of our communities – the department’s highest priority.”
According to gun trace data, a significant number of firearms recovered in the San Francisco Bay Area and the greater Sacramento region originate outside of California and are illegally trafficked into the state. The new San Francisco Bay Area/Sacramento Region Strike Force is jointly helmed by the United States Attorney’s Offices of the Northern and Eastern Districts of California, led by Acting United States Attorneys Stephanie M. Hinds in San Francisco and Phillip A. Talbert in Sacramento, respectively. The ATF San Francisco Field Office, led by Special Agent in Charge Patrick T. Gorman, will support and be integral to the strike force. The strike force will help ensure sustained and focused coordination between law enforcement and prosecutors in San Francisco Bay Area and the Sacramento region with their counterparts in locations where many of the firearms originate.
“Firearms illegally imported into California commonly contribute to violence in crimes committed on the streets of our communities,” said Acting United States Attorney Stephanie M. Hinds for the Northern District of California. “Enhancing our focus on tracing and tracking the source of these illegally trafficked firearms will help stem their flow and assist in combatting violent crime. Our strike force, which I am honored to co-chair with Acting United States Attorney Phillip A. Talbert from the Eastern District of California, and with the critical support of ATF San Francisco Field Office Special Agent in Charge Patrick T. Gorman, is a strong step in the right direction. Because many of the firearm source locations for our Bay Area and Sacramento regions overlap with the source locations for firearms recovered in Southern California, our strike force will work closely with the Los Angeles Strike Force.”
The strike forces represent one important, concrete step in implementing the Department’s Comprehensive Violent Crime Reduction Strategy, which was announced on May 26, 2021. The comprehensive strategy supports local communities in preventing, investigating, and prosecuting gun violence and other violent crime—and requires U.S. Attorneys’ offices to work with federal, state, local and tribal law enforcement, as well as the communities they serve, to address the most significant drivers of violence in their districts. In guidance to federal agents and prosecutors as part of that comprehensive strategy, the Deputy Attorney General made clear that firearms traffickers providing weapons to violent offenders are an enforcement priority across the country.
Department of Justice Efforts to Address Violent Crime
Since April 2021, the Department has taken the following steps to reduce and prevent violent crime, especially the gun crime that is often at the core of the problem:
- On April 8, Attorney General Garland, alongside President Biden, announced four concrete steps for addressing gun violence: ATF would propose a new rule within 30 days to help curb the proliferation of so-called ghost guns, ATF would propose a new rule within 60 days on stabilizing braces used to convert pistols into short-barreled rifles, the Department would publish model state extreme risk protection order legislation within 60 days; and ATF would begin preparing a thorough and detailed new public study of firearms trafficking for the first time in 20 years.
- In April 2021, the Office of Justice Programs also made clear when existing grant funds could be used to support Community Violence Intervention (CVI) programs.
- On May 7, meeting the Attorney General’s announced timeline, ATF issued a notice of proposed rulemaking to update outdated firearms definitions and to help address the proliferation of ghost guns.
- On May 26, the Attorney General announced the Department’s comprehensive strategy to reduce violent crime, including an overall Department Violent Crime Reduction Strategy, the strengthening of Project Safe Neighborhoods (PSN), and a directive to the U.S. Attorneys to work with their local partners in addressing the increase in violence that typically occurs over the summer (with specific support from DOJ law enforcement agencies)
- On June 7, meeting the Attorney General’s announced timeline, ATF issued a notice of proposed rulemaking to clarify that the restrictions imposed by the National Firearms Act apply when stabilizing braces are used to convert pistols into short-barreled rifles.
- On June 8, meeting the Attorney General’s announced timeline, the Department published model state extreme risk protection order legislation.
- On June 22, the Attorney General announced that the Department would be forming five Firearms Trafficking Strike Forces within 30 days.
- On, June 23, the Attorney General, alongside President Biden, announced steps that ATF would take to hold rogue gun dealers accountable for their actions. They include applying a “no tolerance” policy for federal firearms licensers (FFLs) that willfully commit violations that endanger public safety; designating points of contact for state and local government officials to report concerns about rogue FFLs; formalizing the use of public safety factors for inspection prioritization; sharing inspection information with states that regulate firearms dealers themselves; resuming the practice of notifying revoked dealers on how to dispose of their inventory and the potential criminal consequences of continuing to engage in the business; increasing ATF’s resources for inspections (see, FY 2022 Budget request); and publicly posting disaggregated inspection information to ATF’s website.
U.S. Attorney’s Office in Chicago to Participate in Cross-Jurisdictional Firearms Trafficking Strike ForceRead the Press Release
WASHINGTON - The U.S. Department of Justice today launched five cross-jurisdictional strike forces to help reduce gun violence by disrupting illegal firearms trafficking in key regions across the country. Leveraging existing resources, the regional strike forces will better ensure sustained and focused coordination across jurisdictions and help stem the supply of illegally trafficked firearms from source cities, through other communities, and into five key market regions: New York, Chicago, Los Angeles, the San Francisco Bay Area/Sacramento Region, and Washington, D.C.
Each strike force region will be led by designated United States Attorneys, who will collaborate with the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and with federal, state, and local law enforcement partners within their own jurisdiction (where firearms are used in crimes) as well as law enforcement partners in areas where illegally trafficked guns originate. These officials will use the latest data, evidence, and intelligence from crime scenes to identify patterns, leads, and potential suspects in violent gun crimes.
“All too often, guns found at crime scenes come from hundreds or even thousands of miles away," said Attorney General Merrick B. Garland. "We are redoubling our efforts as ATF works with law enforcement to track the movement of illegal firearms used in violent crimes. These strike forces enable sustained coordination across multiple jurisdictions to help disrupt the worst gun trafficking corridors. The Department of Justice will use all of its tools – enforcement, prevention, intervention, and investment – to help ensure the safety of our communities – the department’s highest priority.”
“Straw purchasers and unlicensed gun sellers enable violence,” said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois. “The cross-jurisdictional strike force will increase collaboration with our federal, state, and local law enforcement partners, and enhance our longstanding efforts to hold accountable individuals or groups who illegally traffic firearms into Chicago.”
According to gun trace data, a significant number of firearms recovered in Chicago originate outside Chicago and are illegally trafficked into the city. The new strike force, led by U.S. Attorney Lausch, will help ensure sustained and focused coordination between law enforcement and prosecutors in Chicago with counterparts in the locations where many of the firearms originate.
The strike forces represent one important, concrete step in implementing the Department of Justice’s Comprehensive Violent Crime Reduction Strategy, which was announced on May 26, 2021. The comprehensive strategy supports local communities in preventing, investigating, and prosecuting gun violence and other violent crime - and requires U.S. Attorneys’ offices to work with federal, state, local and tribal law enforcement, as well as the communities they serve, to address the most significant drivers of violence in their districts. In guidance to federal agents and prosecutors as part of that comprehensive strategy, the Deputy Attorney General made clear that firearms traffickers providing weapons to violent offenders are an enforcement priority across the country.
Two Texas residents charged with smuggling 89 in trailerRead the Press Release
LAREDO, Texas – A Houston-area man and woman are set to appear in Laredo federal court on allegations they attempted to smuggle undocumented aliens, announced Acting U.S. Attorney Jennifer B. Lowery.
Marc Anthony Bane, 45, Porter, and Tara Renee Dillon, 33, Conroe, are set to appear before U.S. Magistrate Judge Christopher Dos Santos at 3 p.m. today.
According to the charges, Bane and Dillon arrived at the Border Patrol (BP) checkpoint on Interstate Highway 35 approximately 29 miles north of Laredo in a tractor-trailer. There, a service K-9 allegedly detected an odor within the trailer. The charges allege law enforcement then searched the vehicle and found 89 undocumented non-U.S. citizens.
The individuals were sweating profusely inside the warm trailer even though it was approximately 3 a.m. when authorities found them, according to the charges.
Bane allegedly expected to be paid $1,000 for transporting the trailer.
If convicted, Bane and Dillon face up to 10 years in federal prison and a possible $250,000 maximum fine.
Homeland Security Investigations conducted the investigation with the assistance of BP. Assistant U.S. Attorney David Fawcett is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Two Newark Men Charged with Narcotics Distribution and Firearms ChargesRead the Press Release
NEWARK, N.J. – Two Newark men made their initial appearances today on gang-related narcotics distribution and firearms charges, Acting U.S. Attorney Rachael Honig announced.
Ronnie Holley, 32, and Shadee Holley, 31, both of Newark, are each charged by complaint with one count of conspiracy to distribute fentanyl and cocaine base and one count of possession of a firearm in furtherance of a drug trafficking crime. Ronnie Holley is also charged with one count of possession of a firearm by a convicted felon. They appeared by videoconference this afternoon before U.S. Magistrate Judge Jessica S. Allen and were detained.
According to documents filed in this case and statements made in court:
A set of the national Bloods Street gang known as Sex Money Murders (SMM) operates in and around Newark, New Jersey. Since 2007, members of SMM have engaged in violent disputes with other gangs, trafficked narcotics, and committed various firearms offenses. Law enforcement officials learned that Ronnie and Shadee Holley, who are brothers, were high-ranking members of SMM and operated a sophisticated narcotics distribution operation around Martin Luther King Boulevard and Spruce Street. Law enforcement officials learned that Ronnie Holley used multiple houses and multiple vehicles to store narcotics, narcotics proceeds, and firearms.
A confidential source conducted eight controlled purchases of fentanyl and crack-cocaine from Ronnie and Shadee Holley over the past few months. Those purchases totaled approximately 40 grams of suspected fentanyl, and approximately 25 grams of suspected crack-cocaine.
The count of narcotics conspiracy is punishable by a mandatory minimum of five years in prison and a maximum sentence of 40 years in prison. The count of possession of a firearm during a crime of violence is punishable by a mandatory minimum of five years in prison and a maximum sentence of life in prison, which must run consecutively to any term of imprisonment imposed on any other charges. The count of possession of a firearm by a convicted felon is punishable by a maximum sentence of 10 years in prison.
Acting U.S. Attorney Honig credited the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; and special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark, with the investigation leading to the charges.
This case is part of the U.S. Attorney’s Office’s Violent Crime Initiative (VCI). The VCI 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, and the Irvington Police Department.
The government is represented by Assistant U.S. Attorney George L. Brandley of the OCEDTF Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Two Minnesota Men Sentenced for Meth Trafficking ConspiracyRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Worthington, Minnesota, man and an Albert Lea, Minnesota, man convicted of Conspiracy to Distribute a 500 Grams or More of Methamphetamine, were sentenced by U.S. District Judge Lawrence L. Piersol.
Quentin L. Guyton, age 33, was sentenced on January 5, 2021, to 120 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Ojulu Omot, a/k/a “Al,” age 27, was sentenced on July 16, 2021, to 132 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Guyton and Omot were indicted by a federal grand jury on February 4, 2020. Guyton pled guilty on October 13, 2020, and Omot pled guilty on April 29, 2021.
The conviction stemmed from incidents beginning on an unknown date until on or about February 4, 2020, in the District of South Dakota, when Guyton and Omot knowingly and intentionally combined, conspired, confederated, and agreed together with each other, and others known and unknown, to intentionally distribute 500 grams or more of a mixture and substance containing methamphetamine. Methamphetamine is a Schedule II controlled substance.
Guyton and Omot joined in an agreement or understanding to distribute methamphetamine. They knew the purpose of the agreement or understanding and they could foresee that the quantity of mixture or substance containing methamphetamine exceeded 500 grams.
During the course of the conspiracy, Guyton supplied Omot for the purpose of reselling it in South Dakota and elsewhere.
This case was investigated by the Sioux Falls Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the U.S. Drug Enforcement Administration, and the Buffalo Ridge Drug Task Force in southwestern Minnesota. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Guyton and Omot were immediately turned over to the custody of the U.S. Marshals Service following their respective sentencings.
Two Defendants Plead Guilty to Federal Charges Filed in Connection with Oakland-Based EB-5 Visa Investment SchemeRead the Press Release
OAKLAND - Thomas Henderson pleaded guilty in federal court today to one count of conspiracy to commit wire fraud and one count of making a false statement to a government agency related to his role in deceiving investors in various Oakland, California-based businesses, announced Acting United States Attorney Stephanie M. Hinds; U.S. Department of State’s Diplomatic Security Service (DSS) Special Agent in Charge William Chang; Homeland Security Investigations Special Agent in Charge Tatum King; and Federal Bureau of Investigation Special Agent in Charge Craig Fair. A second defendant, Cooper Lee, also pleaded guilty to one count of conspiracy for his role in diverting certain investor funds. The guilty pleas were accepted by the Hon. Richard Seeborg, Chief U.S. District Judge.
Henderson, 72, of Oakland, and Lee, 44, formerly of Oakland, pleaded guilty to charges pursuant to separate plea agreements entered by the court. According to Henderson’s plea agreement, Henderson admitted he formed the San Francisco Regional Center, LLC (SFRC) in 2010 to raise money from foreign investors through the “EB-5” visa program, a job-creation and immigration program administered by U.S. Citizenship and Immigration Services (USCIS). From 2011 to 2017, SFRC raised more than $100 million from foreign investors for seven commercial enterprises approved under the EB-5 program. Henderson admitted that by at least the middle of 2014, SFRC began using investor funds for purposes and projects other than the specific enterprise corresponding to the investment, and that investors were not specifically told that their investment funds would be or were used for those purposes. For example, Henderson admitted that funds raised from 42 investors for the enterprise North America 3PL LP were used for other projects and businesses, including to fund the operation of earlier struggling projects. Henderson also admitted that he made false statements to USCIS when he submitted a declaration to the agency regarding the use of North America 3PL investor funds.
According to Lee’s plea agreement, from about August 2016 to January 2017, Lee conspired with Henderson to divert some funds raised for the EB-5 enterprise operating as California Gold Medal LP to other EB-5 enterprises and businesses controlled by Henderson. Lee admitted that he transferred funds and prepared documents to make it appear that the transfers were for legitimate business transactions.
USCIS administers the EB-5 visa program. Under the program, foreign nationals may obtain permanent United States residency, commonly known as a Green Card, by investing in qualifying U.S. businesses and creating jobs for U.S. citizens and residents. To receive a two-year grant of conditional permanent residency status, foreign investors must meet certain requirements for an entry visa, comply with program requirements and make an investment of a minimum of $1 million, or $500,000 if the investment is made in certain areas of high unemployment. After two years, the foreign investor and immediate family can petition for permanent residency after meeting program requirements, including the creation of at least 10 jobs for United States citizens and residents through the business funded by the investment.
Chief Judge Seeborg scheduled Lee’s sentencing for December 7, 2021, and Henderson’s sentencing for June 7, 2022.
Henderson pleaded guilty to one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349, and one count of making a false statement to a government agency, in violation of 18 U.S.C. § 1001(a)(2). The conspiracy charge carries a maximum statutory penalty of 20 years in prison and a fine of up to $250,000. The false statement charge carries a maximum penalty of 5 years in prison and a fine of up to $250,000. Lee pleaded guilty to one count of conspiracy, in violation of 18 U.S.C. § 371, which carries a maximum penalty of 5 years in prison and $250,000. Under the terms of each plea agreement, other charges will be dismissed at sentencing if the defendant complies with the agreement. The court also may order additional terms of supervised release, fines, forfeitures, and restitution; however, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Lloyd Farnham and Sheila A.G. Armbrust are prosecuting the case, with the assistance of Patricia Mahoney. The prosecution was the result of an investigation led by the U.S. Department of State Diplomatic Security Service’s representative to the Document and Benefit Fraud Task Force (DBFTF), overseen by the HSI, with the participation of the Federal Bureau of Investigation. The DBFTF is a multi-agency task force that coordinates investigations into fraudulent immigration documents. U.S. Citizenship and Immigration Service’s Office of Fraud Detection and National Security also assisted with the investigation. Additional assistance was provided by the San Francisco Regional Office of the Securities and Exchange Commission.
Twenty-two defendants charged in connection with alleged $11.1 million Paycheck Protection Program fraud schemeRead the Press Release
ATLANTA – Seventeen more individuals have been charged in connection with a fraudulent scheme to obtain approximately $11.1 million in Paycheck Protection Program (PPP) loans and to use those funds to purchase luxury vehicles, jewelry, and other personal items. To date, a total of 22 individuals have been charged in connection with the fraudulent scheme. Six individuals, including the scheme’s mastermind, Darrell Thomas, have pleaded guilty.
“The defendants allegedly took advantage of emergency financial assistance intended for business owners suffering the economic effects caused by the COVID-19 pandemic,” said Acting U.S. Attorney Kurt R. Erskine. “The charges reinforce our resolve to prosecute anyone who used pandemic relief funds for personal gain.”
“So many businesses needed federal emergency assistance to stay afloat during a pandemic, and these defendants allegedly misdirected millions of dollars of that assistance money to their own pockets for luxury items,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Their alleged greed affects every American taxpayer, and the FBI is making every effort possible to stop it and make sure PPP funds are used as intended.”
“When tragedy strikes and citizens find themselves in a vulnerable situation to no fault of their own, the influx of government assistance unfortunately also attracts criminals,” said IRS-Criminal Investigation Special Agent in Charge James E. Dorsey. “While the government is helping those in need, law enforcement is swiftly addressing these vulnerabilities. IRS-CI will continue to help illuminate these criminal deeds with our financial expertise.”
“The Treasury Inspector General for Tax Administration aggressively pursues those who endeavor to defraud programs afforded to the American people under the CARES Act,” said J. Russell George, the Treasury Inspector General for Tax Administration. “We appreciate the efforts of the Department of Justice and our law enforcement partners in this effort.”
“Scheming to fraudulently obtain federal funds that are meant to provide assistance to nation’s small businesses is unacceptable,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “Our Office will remain relentless in the pursuit of fraudsters who seek to exploit SBA’s vital economic programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”
According to Acting U.S. Attorney Erskine, the first superseding indictment, and other information presented in court: From April 2020 through August 2020, the conspirators in the scheme allegedly submitted, or assisted in the submission of, PPP loan applications on behalf of fourteen businesses, seeking loans of approximately $700,000 - $850,000 for each company:
Business Name
PPP Loan Amount
Bellator Phront Group Inc.
$799,955.35
Impact Creations LLC
$830,000
Gaines Reservation and Travel
$806,710
Transportation Management Services
$830,417
Lee Operations LLC
$805,813
RK Painting Co.
$775,000
D Parker Holdings Inc.
$818,102
Continuing Success Inc.
$727,000
All Star Room & Board Services of Michigan Inc.
$737,965
Infinite Education Services Inc.
$854,805
ML Exotic Customs Inc.
$797,275
Bellevie Corp.
$823,585
Advertising and Then Some Inc.
$760,207
Mickies Auto and Tires LLC
$787,160
Total
$11,153,994
In the loan applications, the defendants certified that each applicant business was in operation on February 15, 2020 and had employees for whom it paid salaries and payroll taxes or paid independent contractors; that the funds would be used to retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments; and that the information provided in the application and in all supporting documents and forms was true and accurate in all material respects.
The PPP loan applications reported that each business had between 59 and 69 employees and approximately $295,000 to $342,000 in average monthly payroll expenses. To support these payroll figures, each business’s loan application was accompanied by an Internal Revenue Service Form 941, which employers use to report payroll taxes, for each quarter of 2019 and by a bank statement or a spreadsheet reflecting payroll expenses. In reality, however, none of the businesses had employees or payroll expenses. The Form 941s, bank statements, and W2 payroll spreadsheets had all been fabricated. Indeed, some of the supporting documents the businesses submitted were substantively identical, including identical Form 941s, identical bank statements, and W2 payroll spreadsheets where the reported figures were identical but purported employee names had been changed.
After the PPP loan proceeds were deposited into the businesses’ accounts, the businesses transferred more than $5.5 million of the PPP loan proceeds into accounts controlled by Darrell Thomas, purportedly for rental payments and payroll. However, none of the businesses had any legitimate business with any of the businesses or accounts to which they sent the proceeds. Based on the investigation, none of the companies allegedly engaged in any business-related transactions or used the PPP loan proceeds for any authorized purposes. Instead, the businesses used the funds for various personal expenses. In connection with the investigation, the United States seized nearly $4 million in PPP loan proceeds, four luxury vehicles, and several jewelry items.
Fourteen additional defendants were charged in a First Superseding Indictment unsealed on Wednesday, July 14, 2021:
- Ricky Dixon, 52, of Warren, Michigan, is charged with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud, false statements to a federally insured financial institution, aggravated identity theft, and money laundering in connection with his involvement in the loan obtained by his business, RK Painting Co., and several other businesses’ loans.
- Meghan Thomas, 32, of Alpharetta, Georgia, is charged with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud, and false statements to a federally insured financial institution in connection with her involvement in several businesses’ loans.
- Jesika Blakely, 34, of Atlanta, Georgia, is charged with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud, false statements to a federally insured financial institution, and money laundering in connection with her involvement in several businesses’ loans.
- Amanda Christian, 33, of Blythewood, South Carolina, is charged with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud, and false statements to a federally insured financial institution in connection with her involvement in the loan obtained by her business, Advertising and Then Some Inc., and several other businesses’ loans.
- Dwan Ashong a/k/a Dwan Gilpin, 40, of Jacksonville, Florida, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering in connection with her involvement in several businesses’ loans.
- John Gaines a/k/a Marty Gaines, 56, of Marietta, Georgia, is charged with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud, false statements to a federally insured financial institution, and money laundering in connection with the loan obtained by Gaines Reservation and Travel.
- Charles Petty a/k/a Charles Knight, 48, of Atlanta, Georgia, is charged with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud, false statements to a federally insured financial institution, and money laundering in connection with the loan obtained by Transportation Management Services Inc.
- Jerry Baptiste, 43, of College Park, Georgia, is charged with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud, false statements to a federally insured financial institution, and money laundering in connection with the loan obtained by Transportation Management Services Inc.
- Derek Parker, 56, of Rochester Hills, Michigan, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering in connection with the loan obtained by his business, D Parker Holdings Inc.
- David Belgrave II, 49, of Lexington, South Carolina, is charged with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud, false statements to a federally insured financial institution, and money laundering in connection with the loan obtained by his business, Continuing Success Inc.
- Charles Hill IV, 45, of Norcross, Georgia, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering in connection with the loan obtained by his business, Infinite Education Services Inc.
- Ryan Whittley, 35, of South Holland, Illinois, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering in connection with the loan obtained by his business, ML Exotic Customs Inc.
- El Hadj Sall, 39, of Jacksonville, Florida, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering in connection with the loan obtained by his business, Bellevie Corp.
- Rick McDuffie, 50, of Little Rock, South Carolina, is charged with conspiracy to commit wire fraud and wire fraud in connection with the loan obtained by his business, Mickies Auto and Tire LLC.
Three additional defendants have been charged by Criminal Information:
- Teldrin Foster, 39, of Decatur, Georgia, is charged with conspiracy to commit wire fraud in connection with the loan obtained by Bellator Phront Group Inc.
- Denesseria Slaton, 52, of Stockbridge, Georgia, is charged with conspiracy to commit bank fraud and wire fraud in connection with the loan obtained by Transportation Management Services Inc.
- Charmaine Redding, 27, of Macomb, Michigan, is charged with conspiracy to commit wire fraud in connection with the loan obtained by her business, All Star Room and Board Services of Michigan Inc.
- Another defendant, Carla Jackson, 53, of Tucker, Georgia, was previously charged by indictment on August 4, 2020 with money laundering in connection with laundering the proceeds of Gaines Reservation and Travel’s PPP loan.
Six defendants have pleaded guilty based on their roles in the fraudulent scheme since the original indictment was returned on August 4, 2020, including the mastermind, Darrell Thomas, and one defendant has been sentenced to date:
- Darrell Thomas, 35, of Duluth, Georgia, pleaded guilty on June 16, 2021 to one count of conspiracy to commit bank fraud and wire fraud and one count of money laundering. As part of his guilty plea, Darrell Thomas admitted his participation in fraudulent conduct totaling more than $14.7 million, including more than $11.1 million in fraudulent PPP loans, more than $1.15 million in fraudulent Economic Injury Disaster Loans, and more than $2.4 million in fraudulent automobile loans. He also agreed to forfeit various assets, including more than $2.1 million in seized funds, three luxury vehicles – a 2018 Mercedes-Benz S-Class S65AMG, a 2018 Land Rover Range Rover, and a 2017 Acura NSX – and several items of jewelry, including a gold Rolex. Darrell Thomas’s sentencing is set for September 15, 2021 before Judge J.P. Boulee.
- Denesseria Slaton, pleaded guilty on June 16, 2021 to one count of conspiracy to commit bank fraud and wire fraud in connection with the loan obtained by Transportation Management Services Inc. Slaton’s sentencing is set for October 6, 2021.
- Khalil Gibran Green, Sr., 47, of Cleveland, Ohio, pleaded guilty on September 1, 2020, to one count of conspiracy to commit bank fraud and wire fraud in connection with the loan obtained by his business, Impact Creations LLC. On January 14, 2021, Judge J.P. Boulee sentenced Green to three years and five months’ imprisonment and five years of supervised release, and Judge Boulee ordered him to pay $830,000 in restitution, forfeiture of $157,035.71, and a special assessment of $100.
- Bern Benoit, 45, of Burbank, California, pleaded guilty on March 11, 2021 to one count of conspiracy to commit bank fraud and wire fraud in connection with the loan obtained by his business, Transportation Management Services Inc. Benoit’s sentencing is set for September 8, 2021 before Judge J.P. Boulee.
- Charmaine Redding, pleaded guilty on July 14, 2021 to one count of conspiracy to commit wire fraud in connection with the loan obtained by her business, All Star Room and Board Services of Michigan Inc. Redding’s sentencing is set for October 21, 2021 before Judge J.P. Boulee.
- Andre Lee Gaines, 67, of Dallas, Georgia, pleaded guilty on June 17, 2021 to one count of making false statements to the FBI in connection with the loan obtained by his business, Gaines Reservation and Travel. Andre Gaines’s sentencing is set for October 6, 2021 before Judge J.P. Boulee.
Members of the public are reminded that the indictment contains only charges.
This case is being investigated by the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation, the U.S. Treasury Inspector General for Tax Administration, and the Small Business Administration-Office of the Inspector General.
Assistant U.S. Attorneys Tal Chaiken and Nathan Kitchens of the Northern District of Georgia and Trial Attorney Siji Moore of the Criminal Division’s Fraud Section are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts, For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Twenty-Two Charged in Connection with a More than $11-Million Paycheck Protection Program Fraud SchemeRead the Press Release
Seventeen more individuals have been charged in connection with a fraudulent scheme to obtain approximately $11.1 million in Paycheck Protection Program (PPP) loans and to use those funds to purchase luxury vehicles, jewelry and other personal items.
According to court documents and statements made in court, between May and August 2020, the defendants submitted, or assisted in the submission of, PPP loan applications on behalf of 14 businesses seeking loans of approximately $800,000 for each company. In the loan applications, the defendants certified that each applicant business was in operation on Feb. 15, 2020, and had employees for whom it paid salaries and payroll taxes or that it paid independent contractors; that the funds would be used to retain workers and maintain payroll or to make mortgage interest payments, lease payments and utility payments; and that the information provided in the application and in all supporting documents was true and accurate in all material respects.
In the PPP loan applications, each business reported that it had approximately 60 employees and approximately $300,000 in average monthly payroll expenses. To support these payroll figures, each business’s loan application was accompanied by an IRS Form 941, which employers use to report payroll taxes. But, in reality, each Form 941 was fraudulent.
After the PPP loan proceeds were deposited into the businesses’ accounts, the funds were distributed to conspirators through a series of transactions that were devised to disguise the origins of the funds and how the funds were spent. The defendants and co-conspirators used the PPP loan proceeds to purchase luxury goods, including two Range Rovers, an Acura NSX, and a Mercedes Benz S-Class S65 AMG.
Seventeen Additional Defendants Charged
Fourteen defendants were charged in a first superseding indictment unsealed on July 14, including:
Ricky Dixon, 52, of Warren, Michigan, is charged with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud, false statements to a federally insured financial institution, aggravated identity theft, and money laundering in connection with his involvement in the loan obtained by his business, RK Painting Co., and several other businesses’ loans.
Meghan Thomas, 32, of Alpharetta, Georgia, is charged with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud, and false statements to a federally insured financial institution in connection with her involvement in several businesses’ loans.
Jesika Blakely, 34, of Atlanta, Georgia, is charged with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud, false statements to a federally insured financial institution, and money laundering in connection with her involvement in several businesses’ loans.
Amanda Christian, 33, of Blythewood, South Carolina, is charged with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud, and false statements to a federally insured financial institution in connection with her involvement in the loan obtained by her business, Advertising and Then Some Inc., and several other businesses’ loans.
Dwan Ashong, aka Dwan Gilpin, 40, of Jacksonville, Florida, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering in connection with her involvement in several businesses’ loans.
John Gaines, aka Marty Gaines, 56, of Marietta, Georgia, is charged with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud, false statements to a federally insured financial institution, and money laundering in connection with the loan obtained by Gaines Reservation and Travel.
Charles Petty, aka Charles Knight, 48, of Atlanta, Georgia, is charged with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud, false statements to a federally insured financial institution, and money laundering in connection with the loan obtained by Transportation Management Services Inc.
Jerry Baptiste, 43, of College Park, Georgia, is charged with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud, false statements to a federally insured financial institution, and money laundering in connection with the loan obtained by Transportation Management Services Inc.
Derek Parker, 56, of Rochester Hills, Michigan, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering in connection with the loan obtained by his business, D Parker Holdings Inc.
David Belgrave II, 49, of Lexington, South Carolina, is charged with conspiracy to commit bank fraud and wire fraud, bank fraud, wire fraud, false statements to a federally insured financial institution, and money laundering in connection with the loan obtained by his business, Continuing Success Inc.
Charles Hill IV, 45, of Norcross, Georgia, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering in connection with the loan obtained by his business, Infinite Education Services Inc.
Ryan Whittley, 35, of South Holland, Illinois, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering in connection with the loan obtained by his business, ML Exotic Customs Inc.
El Hadj Sall, 39, of Jacksonville, Florida, is charged with conspiracy to commit wire fraud, wire fraud, and money laundering in connection with the loan obtained by his business, Bellevie Corp.
Rick McDuffie, 50, of Little Rock, South Carolina, is charged with conspiracy to commit wire fraud and wire fraud in connection with the loan obtained by his business, Mickies Auto and Tire LLC.
Three additional defendants have been charged by criminal information:
Teldrin Foster, 39, of Decatur, Georgia, is charged with conspiracy to commit wire fraud in connection with the loan obtained by Bellator Phront Group Inc.
Denesseria Slaton, 52, of Stockbridge, Georgia, is charged with conspiracy to commit bank fraud and wire fraud in connection with the loan obtained by Transportation Management Services Inc.
Charmaine Redding, 27, of Macomb, Michigan, is charged with conspiracy to commit wire fraud in connection with the loan obtained by her business, All Star Room and Board Services of Michigan Inc.
Another defendant, Carla Jackson, 53, of Tucker, Georgia, was previously charged by indictment on Aug. 4, 2020, with money laundering in connection with laundering the proceeds of Gaines Reservation and Travel’s PPP loan.
If convicted, the defendants face a maximum penalty of 20 years in prison on the wire fraud and money laundering charges and a maximum of 30 years on the bank fraud and false statement to a federally insured bank charge. Dixon also faces an additional two-year sentence on the aggravated identity theft charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Six Plead Guilty, Including Mastermind
Six defendants have pleaded guilty based on their roles in the fraudulent scheme since the original indictment was returned on August 4, 2020, including the mastermind, Darrell Thomas, and one defendant has been sentenced to date:
Darrell Thomas, 35, of Duluth, Georgia, pleaded guilty on June 16, to one count of conspiracy to commit bank fraud and wire fraud and one count of money laundering. As part of his guilty plea, Darrell Thomas admitted his participation in fraudulent conduct totaling more than $14.7 million, including approximately $11.2 million in fraudulent PPP loans, more than $1.15 million in fraudulent Economic Injury Disaster Loans, and more than $2.4 million in fraudulent automobile loans. He also agreed to forfeit various assets, including more than $2.1 million in seized funds, three luxury vehicles – a 2018 Mercedes-Benz S-Class S65AMG, a 2018 Land Rover Range Rover, and a 2017 Acura NSX – and several items of jewelry, including a gold Rolex. Darrell Thomas’s sentencing is set for Sept. 15, before Judge J.P. Boulee.
Denesseria Slaton, pleaded guilty on June 16, to one count of conspiracy to commit bank fraud wire fraud in connection with the loan obtained by Transportation Management Services Inc. Slaton’s sentencing is set for Oct. 6.
Khalil Gibran Green Sr., 47, of Cleveland, Ohio, pleaded guilty on Sept. 1, 2020, to one count of conspiracy to commit bank fraud and wire fraud in connection with the loan obtained by his business, Impact Creations LLC. On Jan. 14, Judge J.P. Boulee sentenced Green to three years and five months in prison and five years of supervised release, and ordered him to pay $830,000 in restitution and forfeiture of $157,035.71.
Bern Benoit, 45, of Burbank, California, pleaded guilty on March 11, to one count of conspiracy to commit bank fraud and wire fraud in connection with the loan obtained by his business, Transportation Management Services Inc. Benoit’s sentencing is set for Sept. 8, before Judge J.P. Boulee.
Charmaine Redding, pleaded guilty on July 14, to one count of conspiracy to commit wire fraud in connection with the loan obtained by her business, All Star Room and Board Services of Michigan Inc. Redding’s sentencing is set for Oct. 21, before Judge J.P. Boulee.
Andre Lee Gaines, 67, of Dallas, Georgia, pleaded guilty on June 17, to one count of making false statements to the FBI in connection with the loan obtained by his business, Gaines Reservation and Travel. Andre Gaines’s sentencing is set for Oct. 6, before Judge J.P. Boulee.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division and Acting U.S. Attorney Kurt R. Erskine of the Northern District of Georgia made the announcement.
This case is being investigated by the FBI, the U.S. Treasury Inspector General for Tax Administration, and the Small Business Administration-Office of the Inspector General.
Trial Attorney Siji Moore of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Tal Chaiken and Nathan Kitchens of the Northern District of Georgia are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Three Individuals Charged in Bribery SchemeRead the Press Release
RICHMOND, Va. –Three individuals made their initial appearances in federal court this afternoon on charges of participating in a bribery scheme.
According to the indictment, Susan May Keim, 52, and Russell John Keim, Sr., 59, of Hopewell, allegedly accepted bribes from Rodney Gale Wilson, 65, of Imperial, Missouri, in return for Susan Keim’s award of federal subcontracts to Wilson’s company, C&L Supply.
According to the indictment, Susan Keim worked for Skookum Educational Services, a company that contracted with the federal government to provide maintenance and supply services at Fort Lee. Rodney Wilson was the owner of C&L Supply, a company formed for the sole purpose of selling supplies for Skookum for use at Fort Lee. From 2013 to 2018, in return for the award of the subcontracts valued at least $912,765.89 and the supply of confidential information, Wilson allegedly provided various things of value, totaling at least $92,039.79, to Susan and her spouse, Russell Keim, including: (1) checks and cash payments to Russell Keim disguised as compensation to Russell Keim for work performed for C&L Supply, when, in fact, Russell Keim never worked for that company; and (2) payments for work done on a property owned by Susan and Russell Keim.
All three individuals are charged with conspiracy and payment, and receipt of bribes. If convicted, each defendant faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
The defendants will be arraigned before U.S. District Judge John A. Gibney, Jr. on August 16.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Kenneth A. Polite Jr., Assistant Attorney General of the Justice Department’s Criminal Division; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; L. Scott Moreland, Special Agent in Charge of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit’s (MPFU) Mid-Atlantic Fraud Field Office; and Chris Dillard, Special Agent in Charge for Department of Defense Office of Inspector General, Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office, made the announcement.
Assistant U.S. Attorney Michael C. Moore of the Eastern District of Virginia and Trial Attorney Rebecca M. Schuman of the Justice Department’s Public Integrity Section are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:21-cr-083.
An indictment is merely an accusation. The defendants are presumed innocent until proven guilty.
Tennessee Man Sentenced for Producing Child PornographyRead the Press Release
Acting United States Attorney Jan Sharp announced that Robert Lee Wright, age 38, of Cleveland, Tennessee, was sentenced today to 400 months’ imprisonment by United States District Court Judge John M. Gerrard for Production of Child Pornography and Distribution of Child Pornography. There is no parole in the federal system. After his release, Wright will be on supervised release for life and be required to register as a sex offender. Additionally, Wright was ordered to pay $66,000 in restitution.
On December 23, 2018, Wright was the passenger in a rental vehicle stopped by the Nebraska State Patrol in Hamilton County, Nebraska. A search of the vehicle was conducted and 95 electronic devices and storage devices were recovered from within the vehicle. One of these devices was Wright’s Samsung Galaxy J3 cellular phone, which contained a microSD memory card. Wright was arrested on unrelated state charges immediately following the search of the vehicle and he was interviewed on December 23, 2018. During this interview, Wright stated that all of the electronic devices were his.
On January 4, 2019, a state search warrant was obtained through the County Court of Hamilton County, Nebraska by the Nebraska State Patrol to search Wright’s Samsung Galaxy J3. A review of a microSD card from the Samsung Galaxy J3 cellular phone located more than 700 images of child pornography. Additionally, a video located of Wright filming himself engaging in sexually explicit conduct with an infant girl who was confirmed to be approximately 23 months old.
While in the Hamilton County Jail, Wright gave his login information for his Gmail account to a third party in Tennessee over the phone. This allowed for that individual to access and receive the child pornography stored on the account. The FBI reviewed approximately 100 of Wright’s devices as well as his internet-based cloud accounts. This review found a total of 43,678 images and 922 videos depicting children engaging in sexually explicit conduct.
The FBI also identified and located the 23-month-old girl. The FBI and local law enforcement searched the storage unit where Wright produced the video with the 23-month-old girl which was rented by an associate of Wright’s. The FBI also located and collected sheets that were depicted in the video.
Following the sentencing, Acting United States Attorney Sharp noted, “The investigation and prosecution of Robert Wright involved extensive collaboration between our office, the FBI in Nebraska and Tennessee, and its local law enforcement partners. This collaboration is a hallmark of the Department of Justice’s commitment to protect children from sexual exploitation and abuse and to bring offenders to justice. Today’s 400-month sentence reflects the heinous nature of the crimes committed and the reality that Robert Wright is a sexual predator. Today’s sentence will ensure that Wright will not be in a position where he can prey on children again.”
After the sentencing, FBI Omaha Special Agent in Charge Eugene Kowel said, “Robert Lee Wright engaged in the most despicable of crimes, victimizing young children for his own depraved gratification. It is a priority for the FBI to use any investigative resources necessary to assist our law enforcement partners in removing criminals like Wright from our communities.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Federal Bureau of Investigation, Papillion Police Department, Nebraska State Patrol, and the Bradley County, Tennessee Sheriff’s Office.
Tallulah Man Sentenced for Trafficking MethamphetamineRead the Press Release
MONROE, La. – Patrick Senclair Jackson, 46, of Tallulah, Louisiana, was sentenced by United States District Judge Terry A. Doughty to 120 months (10 years) in prison, followed by 5 years of supervised release, for drug trafficking.
Jackson was indicted by a federal grand jury in September 2020 and pleaded guilty on March 3, 2021 to distribution of methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. The drug trafficking charges are the result of an investigation into the illegal activities of Jackson.
Law enforcement agents were familiar with Jackson’s involvement in drug trafficking as they had previously purchased methamphetamine from him in June 2019 during an undercover operation. The methamphetamine that was purchased from Jackson during the undercover operation was later sent to the crime lab and confirmed to be 8.87 grams of methamphetamine.
In November 2019, law enforcement agents initiated a traffic stop of Jackson to execute an outstanding arrest warrant on him. During the traffic stop, agents observed a revolver in the driver’s side door of the vehicle he was driving. Law enforcement agents obtained a search warrant and found 9.17 net grams of powder cocaine, 1.95 grams of crack cocaine and less than one gram of methamphetamine, and other drug paraphernalia.
The DEA, ATF, and Louisiana State Police conducted the investigation. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
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Stoneham Man Indicted for Identity Theft and Fraud Related to COVID-19 Pandemic Unemployment AssistanceRead the Press Release
BOSTON – A Stoneham man was indicted today in connection with his alleged involvement in a fraudulent scheme to obtain COVID-19-related unemployment assistance.
Daniel Maleus, 33, was indicted on one count of wire fraud, one count of conspiracy to commit wire fraud and one count of aggravated identity theft. Maleus was charged by criminal complaint and arrested on April 8, 2021.
In March 2020, in response to the global coronavirus pandemic, Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which among other things, created a temporary federal unemployment insurance program called Pandemic Unemployment Assistance (PUA). The PUA, which in Massachusetts is administered by the Department of Unemployment Assistance, provides unemployment insurance benefits for individuals who are not eligible for other types of unemployment benefits.
According to the charging documents, Maleus filed and conspired with others to file fraudulent PUA claims in the names of other people. It is alleged that Maleus and his co-conspirators obtained more than $250,000 in payments on fraudulent unemployment claims submitted between April 2020 and April 2021.
The charges of wire fraud and conspiracy to commit wire fraud each provide for a maximum sentence of 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater and forfeiture. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutively to any other sentence imposed. 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; Joseph R. Bonavolanta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Nikitas Splagounias, Acting Special Agent in Charge of the Department of Labor, Office of Inspector General, Office of Investigations made the announcement. Special assistance was provided by the Massachusetts Department of Unemployment Assistance. Assistant U.S. Attorney Christopher J. Markham of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Spring Creek Man Sentenced for Methamphetamine DistributionRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Spring Creek, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance, was sentenced on July 19, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Charles Little Elk III, a/k/a Charlie Little Elk, age 38, was sentenced to 63 months in federal prison, followed by 4 years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Little Elk was indicted by a federal grand jury on July 16, 2020. He pled guilty on April 6, 2021.
The conviction stemmed from a conspiracy that occurred between January 2017 and January 2019. During this time, Little Elk conspired with several others to distribute between 350 and 500 grams of methamphetamine on the Rosebud Sioux Indian Reservation in central South Dakota.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Meghan N. Dilges prosecuted the case.
Little Elk was immediately remanded to the custody of the U.S. Marshals Service.
South Carolina Woman Admits to Conspiracy and Fraud ChargesRead the Press Release
PITTSBURGH - A resident of Columbia, South Carolina, pleaded guilty in federal court to a charge of conspiracy to commit offenses against the United States, including theft of mail, possessing forged securities, and bank fraud, Acting United States Attorney Stephen R. Kaufman announced today.
Taylor Frierson, age 29, originally from Columbia, South Carolina, pleaded guilty to one count before United States District Judge Robert J. Colville.
In connection with the guilty plea, the court was advised that from April 2019 to July 2019, Frierson conspired with others to steal checks contained in United States mail at local businesses and other establishments. Members of the conspiracy, including Frierson, would send photographs of the legitimate checks to other conspirators who would in turn create altered, fraudulent versions of the checks. The fraudulent checks were made payable to individuals from the local area recruited by Frierson and others. Frierson also drove the individuals to cash the fraudulent checks at local banks. The conspiracy victimized more than 10 victims in Western Pennsylvania and led to tens of thousands of dollars in losses.
Judge Colville scheduled sentencing for December 2, 2021 at 11:00 am. For the conspiracy charged, the law provides for a total sentence of not more than 5 years in prison, a fine not to exceed $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Court ordered that Frierson be released on bond pending sentencing.
Assistant United States Attorney Brian M. Czarnecki is prosecuting this case on behalf of the government.
This case resulted from the investigations of multiple agencies, including the Pennsylvania State Police, Pennsylvania Office of Attorney General, the United States Secret Service, and the United States Postal Inspection Service.
South Bend, Indiana Woman was SentencedRead the Press Release
SOUTH BEND – Crystal Egan, age 33, of South Bend, Indiana, was sentenced before United States District Court Chief Judge Jon DeGuilio upon her pleas of guilty to Hobbs act robbery and brandishing a firearm during a crime of violence, announced Acting United States Attorney Tina L. Nommay.
Egan was sentenced to 102 months in prison followed by 3 years of supervised release.
According to documents in this case, Crystal Egan participated in 2 armed robberies, one being a bank and the other a tobacco store. Egan aided in planning the robberies and was the driver for each. At the tobacco store robbery in Mishawaka on November 18, 2019, co-defendants Armand White and Joshua Gant entered the business wearing masks and armed with handguns while she stayed behind in the car. They brandished their firearms and demanded money from the clerk. The clerk complied with their demands for money by giving them cash. Upon exiting the business, Egan and co-defendants drove to a house where the three split the proceeds.
On November 20, 2019, Egan again planned and drove co-defendants Armand White and Daniel Scott to a Federal Credit Union in South Bend to conduct a robbery. When arriving at the Credit Union, White and Scott entered with faces covered and firearms while demanding money. After obtaining the money, they fled in the vehicle driven by Egan.
On July 8, 2021 Joshua Gant was sentenced to 90 months in prison for his role in this crime. Armand White is awaiting sentencing currently scheduled for October of 2021. Daniel Scott is awaiting sentencing currently scheduled in September 2021.
The case is the result of an investigation conducted by the Federal Bureau of Investigation with the assistance of Mishawaka and South Bend Police Departments. This case was prosecuted by Assistant United States Attorney Kimberly Schultz.
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Sioux Falls Man Sentenced for Distribution of a Controlled Substance Resulting in Death or Serious Bodily InjuryRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Sioux Falls, South Dakota, man convicted of Distribution of a Controlled Substance Resulting in Death or Serious Bodily Injury was sentenced on July 12, 2021, by U.S. District Judge Karen E. Schreier.
Ignacio Joaquim Veytia, age 24, was sentenced to 240 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Veytia was indicted by a federal grand jury on October 6, 2020. He pled guilty on April 21, 2021.
The conviction stemmed from an incident on or about June 18, 2019, when Veytia, knowingly and intentionally distributed fentanyl and said fentanyl resulted in the serious bodily injury of a victim. The victim smoked the fentanyl provided by Veytia and sustained an overdose, which was reversed by the administration of Narcan. Fentanyl is a Schedule II controlled substance.
This case was investigated by the Sioux Falls Police Department and Homeland Security Investigations. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Veytia was immediately turned over to the custody of the U.S. Marshals Service.