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Tuesday 20 July 2021
Pennsylvania Man Pleads Guilty to Trafficking Endangered and Invasive FishRead the Press Release
A Pennsylvania man pleaded guilty today in the Western District of Pennsylvania for trafficking in endangered and invasive fish in violation of the Lacey Act.
Anthony Nguyen, aka JoJo Nguyen and Jackie Lee, 49, of Pittsburgh, entered guilty pleas before U.S. District Judge Nora B. Fischer to counts one and two of the indictment returned against him on Nov. 13, 2020, alleging that he trafficked in endangered Asian arowana and invasive snakehead fish. Nguyen owned and operated a Pittsburgh business, Ichiban Tropical Fish, specializing in the sale of rare and exotic freshwater tropical fish species.
During his plea hearing, Nguyen admitted to violating the Lacey Act in 2016 when he sold illegally imported Asian arowana, which are native to Southeast Asia and are protected under the U.S. Endangered Species Act (ESA). Arowana, also known as “dragon fish” or “Asian bonytongue fish,” are considered the most expensive freshwater fish on earth, with highly sought-after specimens selling for tens of thousands of dollars. Arowana are also listed in Appendix I of the Convention on International Trade in Endangered Species of Flora and Fauna (CITES), which is reserved for the most endangered species of fish and wildlife.
Nguyen also admitted to violating the Lacey Act for selling invasive and injurious snakehead fish in 2019, in violation of Pennsylvania law. Snakeheads are native to Asia, but have been introduced into freshwater habitats in the U.S. Pursuant to the terms of Nguyen’s plea agreement, he will also accept responsibility for falsifying documents related to the snakehead shipment.
Nyugen is scheduled to be sentenced on Nov. 1 and faces a maximum penalty of five years in prison and a $250,000 fine for each charge.
The investigation was conducted by the U.S. Fish and Wildlife Service, Office of Law Enforcement. The Pennsylvania Fish and Boat Commission, California Department of Fish and Wildlife, and Texas Parks and Wildlife Department also provided assistance during the investigation. The case is being prosecuted by Trial Attorney Patrick M. Duggan of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney Eric G. Olshan.
Ohio Man Sentenced for Distributing Counterfeit Pharmaceuticals in the Eastern District of TexasRead the Press Release
PLANO, Texas – An Ohio man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Austin Seymour, 26, of Uniontown, Ohio, pleaded guilty on Jan. 26, 2021, to conspiracy to distribute and possess with intent to distribute controlled substances and was sentenced to 168 months in federal prison today by U.S. District Judge Sean D. Jordan.
“The Eastern District of Texas remains committed to pursuing the fight against illegal narcotics on all fronts,” said Acting U.S. Attorney Nicholas J. Ganjei. “This defendant was in the business of distributing counterfeit pharmaceutical drugs, which can often have deadly consequences for the user. These drugs are increasingly being sold in the Eastern District of Texas, and our Office is committed to leveraging all of our resources to locate and prosecute those responsible for distributing these unsafe drugs into our communities.”
“Counterfeit pharmaceutical pills like the ones Mr. Seymour and his co-conspirators distributed throughout North Texas are responsible for the destruction of countless families and lives taken too soon,” said Eduardo A. Chavez, Special Agent in Charge of DEA Dallas. “DEA Dallas will continue to partner with our communities to educate and prevent these drugs from reaching our homes and will most importantly, hold those accountable who choose to distribute and profit from this poison.”
According to information presented in court, in February 2019, Seymour became the primary distributor for the Gary Collin Bussell drug trafficking organization and was responsible for the organization’s drug stash house. In so doing, he also assumed the role of the primary distributor to customers in the DFW area. He distributed counterfeit pharmaceutical pills, marijuana, and THC and was responsible for making payments to the organization’s narcotics suppliers. When a search was executed at Seymour’s residence, agents found a loaded Glock firearm in his vehicle along with various narcotics, bulk U.S. currency, a money counter, and a drug ledger in his apartment. Seymour was indicted by a federal grand jury on Oct. 8, 2019 and charged with drug trafficking violations.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.
This case was investigated by the U.S. Drug Enforcement Administration and the Dallas Police Department. It was prosecuted by Assistant U.S. Attorney Jay Combs.
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North East, PA Man Had Sexual Images of Children on His ComputerRead the Press Release
ERIE, Pa. - A resident of North East, Pennsylvania, pleaded guilty in federal court to a charge of violating federal laws relating to the sexual exploitation of children, Acting United States Attorney Stephen R. Kaufman announced today.
Gregory A. Doyle, 58, pleaded guilty to one count before Senior United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Doyle possessed computer images depicting minors under the age of 12 engaging in sexually explicit conduct.
Judge Cercone scheduled sentencing for December 13, 2021, at 2:00 p.m. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Doyle on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation that led to the prosecution of Doyle.
Nocona Man Convicted of Sexual Exploitation of Missing BoyRead the Press Release
A Nocona man named a person of interest in the 2015 disappearance of a local 18-year-old pleaded guilty today to preying on the boy when he was a minor, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Hours after the court declared a mistrial due to juror injury, Ricky Dale Howard, 59, pleaded guilty to sexual exploitation of a child.
“Although much of what happened to this young boy remains a mystery, we know one thing for sure: Before he went missing, he suffered at the hands of a child sex predator. He was preyed upon by a man his family knew and trusted,” said Acting U.S. Attorney Shah. “Our fervent hope is that one day, he will be found. In the meantime, we are proud to put the man who abused him behind bars.”
FBI Dallas Special Agent in Charge Matthew J. DeSarno said, “We will continue to work with our partners to seek justice for this victim’s family and do all that we can to ensure that vulnerable members of our community are protected from those who seek to do them harm. The defendant will be held accountable for his reprehensible conduct, and we will remain committed to investigating anyone who seeks to exploit children.”
According to evidence presented in court before the mistrial was declared, law enforcement obtained several of Mr. Howard’s computers during an investigation into the disappearance of a high school senior who was reported missing on April 1, 2015, just two weeks after his 18th birthday.
On the computers, investigators found sexually explicit images that appeared to show Mr. Howard sexually abusing the missing boy. In pleading guilty, Mr. Howard admitted that he enticed the minor into engaging in sexually explicit conduct for the purpose of creating a visual depiction.
At trial, the boy’s mother testified she and her children had been close with the Howard family since the boys were children. Tami Diehl said her son began performing odd jobs for Mr. Howard during middle school.
Law enforcement officers testified that following the boy’s disappearance, Mr. Howard told police the last time he’d seen the victim was the weekend before he went missing, when the pair attempted to repair his broken-down truck. Several days into the missing person investigation, an officer observed a burn pit with several incinerated computers on Mr. Howard’s property.
Two years after the disappearance, Ms. Diehl discovered a small handheld tape recorder hidden in the back of a bathroom cabinet. The tape recorder contained audio of Mr. Howard asking himself polygraph questions pertaining to his sexual interest in young boys.
Shortly thereafter, investigators re-examined the missing persons case. Recalling the incinerated computers, officers asked Mr. Howard’s ex-wife and later his daughter for the computers, which were examined by analysts at the FBI’s North Texas Regional Computer Forensic Lab. Ms. Diehl, one of Mr. Howard’s sons, and Mr. Howard’s ex-wife all identified the missing victim in redacted versions of photographs extracted from the computers.
Mr. Howard now faces up to 30 years in federal prison.
The Federal Bureau of Investigation’s Dallas Field Office, Wichita Falls Resident Agency, the Montague County Sheriff’s Office, and the Nocona Police Department conducted the investigation with the assistance of the Montague County District Attorney’s Office and the Texas Rangers. Assistant U.S. Attorneys Brandie Wade and Nancy Larson are prosecuting the case. U.S. District Judge Reed O’Connor presided over trial in Fort Worth.
New York City Man Arrested in Kidnapping of Elderly Woman with Dementia at West L.A. Veterans’ Affairs Medical CenterRead the Press Release
LOS ANGELES – A New York man is scheduled to be in federal court this afternoon after being arrested Monday on a kidnapping charge stemming from his alleged abduction of a 68-year-old woman with dementia at the West Los Angeles Veterans Affairs Medical Center.
Johnny Ray Gasca, 51, of Bronx, New York, was charged in a federal criminal complaint filed today with one count of kidnapping, an offense that carries a statutory maximum penalty of life in federal prison.
The FBI arrested Gasca on Monday afternoon outside a Hollywood motel. The victim was rescued at the same time.
According to the affidavit in support of the criminal complaint, the victim was kidnapped at approximately 8:30 a.m. on Monday after attempting to obtain a medical appointment at the VA facility. The victim was accompanied by a long-time friend, and as the two of them “approached their car, Gasca appeared unexpectedly,” the affidavit states. “Gasca put his arms around [the victim] and pushed her toward a gold-colored pickup truck that was parked nearby. Gasca then picked [the victim] up and threw her into the rear portion of the truck’s passenger compartment.”
After the Department of Veteran Affairs Police Department contacted the FBI later in the morning, the victim’s friend told agents she recognized Gasca, believed he previously was in some kind of relationship with the victim, and suspected Gasca may have taken some of [the victim’s] money from her bank and retirement accounts, according to the affidavit.
The witness also reported that the victim previously noted she was missing some of her credit cards, and when the two went to the victim’s bank to review her accounts, bank records showed a $35,000 withdrawal from the victim’s retirement account, followed by a number of Venmo, MoneyGram and PayPal transactions that the friend believed the victim did not have “the knowledge or wherewithal” to conduct, the affidavit states.
Within hours of beginning its investigation, the FBI located the victim’s phone at The Dixie Hollywood Hotel on Hollywood Boulevard, where agents converged. Soon after, Gasca and the victim exited the hotel, leading to Gasca’s arrest.
During an interview recounted in the affidavit, Gasca described the victim as his girlfriend and told agents that, after leaving the VA facility, they stopped at a bank where the victim made a $15,000 withdrawal.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The FBI investigated this matter and received substantial assistance from the VA Police Department.
Assistant United States Attorney Kevin Reidy of the Violent and Organized Crime Section is prosecuting this case.
New Bedford Man Sentenced 10 Years in Federal Prison for Cocaine ConspiracyRead the Press Release
BOSTON – A New Bedford man was sentenced yesterday for his role in a cocaine distribution conspiracy.
Victor Alejandro-Carrillo, 26, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to 10 years in prison and five years of supervised release. On March 15, 2021, Alejandro-Carrillo pleaded guilty to one count of conspiring to distribute and to possess with intent to distribute five kilograms or more of cocaine, one count of conspiring to distribute and to possess with intent to distribute 500 grams or more of cocaine and one count of conspiring to distribute and to possess with intent to distribute 100 grams or more of heroin and 40 grams or more of fentanyl.
In December 2019, Alejandro-Carrillo was charged along with 12 co-defendants with various drug trafficking offenses.
From at least June 2017 through December 2019, it is alleged that Alejandro-Carrillo was involved in a cocaine distribution conspiracy in which he agreed with others to receive parcels containing cocaine that had been shipped from Puerto Rico to Massachusetts. Upon receipt of the parcels, Alejandro-Carrillo arranged to deliver the cocaine to co-conspirators. Investigators intercepted a number of communications between the defendant and co-conspirators in furtherance of that conspiracy and seized multiple parcels containing kilograms of cocaine. In total, Alejandro-Carrillo possessed and conspired to distribute at least 17.9 kilograms of cocaine.
In addition, from at least February 2019 through December 2019, Alejandro-Carrillo was allegedly involved in another cocaine distribution conspiracy. As a part of that conspiracy, Alejandro-Carrillo communicated with co-conspirators to purchase varying quantities of cocaine on multiple occasions for re-distribution. In addition, from approximately February 2019 through April 2019, Alejandro-Carrillo was involved in a conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin and 40 grams or more of fentanyl. Investigators intercepted communications with respect to both of those conspiracies.
Alejandro-Carrillo is the second defendant to be sentenced. One additional defendant has pleaded guilty and is awaiting sentencing. The remaining 10 defendants have pleaded not guilty.
Acting United States Attorney Nathaniel R. Mendell; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Joshua McCallister, Acting Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and New Bedford Police Chief Joseph C. Cordeiro made the announcement. Assistant U.S. Attorney Craig Estes of Mendell’s Narcotics and Money Laundering Unit prosecuted the case.
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.
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.
Ms-13 Gang Member Sentenced to 30 Years in Federal Prison for Conspiracy to Destroy and Conceal Murder Evidence and Conspiracy to Participate in a Racketeering EnterpriseRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced Kevin Alexis Rodriguez-Flores, age 20, of Annandale, Virginia to 30 years in federal prison, followed by five years of supervised release, for conspiracy to participate in a racketeering enterprise and conspiracy to destroy and conceal evidence related to the murder of a MS-13 gang member.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Assistant Director in Charge Steven M. D’Antuono of the Federal Bureau of Investigation - Washington Field Office; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; Chief Malik Aziz of the Prince George’s County Police Department; Prince George’s County State’s Attorney Aisha N. Braveboy; Chief Kevin Davis of the Fairfax County Police Department; and Sheriff David P. Decatur of the Stafford County, Virginia Sheriff’s Office.
MS-13 is a national and transnational gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Maryland, Virginia, and throughout the United States. Members of MS-13 are expected to protect the name, reputation, and status of the gang from rival gang members and other persons. To protect the gang and to enhance its reputation, MS-13 members are expected to use any means necessary to force respect from those who showed disrespect, including acts of intimidation and violence. MS-13 members are required to commit acts of violence to maintain membership and discipline within the gang. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible. Another principal rule of MS-13 is that its members must never cooperate with law enforcement. Violation of this rule results in an order of death for the offender.
According to his plea agreement, from 2018 to April 2019 Rodriguez-Flores was a member of the Enfermos Criminales Salvatruchas MS-13 clique and associated with members of the Los Ghettos Criminales Salvatrucha clique (LGCS) of MS-13. During this time period, Rodriguez-Flores and other members of the LGCS clique discussed committing racketeering acts, including killing a member of the LGCS clique (Victim 1) as well as rival gang members.
Specifically, on March 8, 2019, Rodriguez-Flores and other LGCS clique members, met at the Hyattsville, Maryland residence of the LGCS clique leader to question Victim 1’s possible cooperation with law enforcement. During the interrogation of Victim 1, the clique leader and gang members threatened and assaulted Victim 1 as the gang suspected that Victim 1 was cooperating with law enforcement. Gang members, including the clique leader, used knives to repeatedly cut and stab Victim 1. After Victim 1 was taken into the basement of the residence, the clique leader ordered Victim 1 to be killed. Gang members, including Rodriguez-Flores, stabbed Victim 1 with knives until Victim 1 was dead. Victim 1 died as a result of Rodriguez-Flores and the other gang member’s actions. According to the autopsy report, Victim 1 sustained a total of 144 wounds: 68 stab wounds and 76 cutting wounds. The autopsy also reported that the victim’s left internal jugular vein was cut and left carotid artery, an artery within the throat cavity, was transected.
Following the murder of Victim 1, the clique leader ordered three MS-13 members to dispose of Victim 1’s body in Virginia. According to the plea agreement, gang members subsequently burned the body of Victim 1. Rodriguez-Flores and other members remained at the clique leader’s residence and attempted to destroy evidence of Victim 1’s murder. This included disposing of blood in the basement and removing blood stained carpet.
After the MS-13 members returned from disposing of Victim 1’s body, co-conspirators cleaned the car, particularly the trunk area, in an attempt to remove evidence of the murder of Victim 1. Rodriguez-Flores remained at the residence of the clique leader until the following day, March 9, 2019, when he and other MS-13 members traveled back to Virginia.
Acting United States Attorney Jonathan F. Lenzner praised the FBI, HSI Baltimore, the Prince George’s County Police Department, the Prince George’s County State’s Attorney’s Office, the Fairfax County, Virginia Police Department, and the Stafford County, Virginia, Sheriff’s Office for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys William Moomau and Erin B. Pulice, who prosecuted the case.
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Missoula man sentenced to 20 years in prison for Flathead Valley meth trafficking; gun crimesRead the Press Release
MISSOULA – A Missoula man was sentenced today to 20 years in prison to be followed by five years of supervised release for conviction in a large methamphetamine trafficking investigation in which multi-pound shipments of meth were stored at his shop in East Missoula and distributed in the Flathead Valley, Acting U.S. Leif M. Johnson said.
Leon Paul Kavis, Jr., 37, pleaded guilty on March 9 to conspiracy to possess with intent to distribute meth and to possession of a firearm in furtherance of a drug trafficking crime.
U.S. District Judge Dana L. Christensen presided. Judge Christensen also ordered the forfeiture of $13,920, nine guns, ammunition and magazines. Kavis was detained.
The government alleged in court documents that Kavis was identified to law enforcement as a source of meth in the Flathead Valley from about November 2019 to November 2020. California authorities also identified Kavis as working with individuals to bring meth to Montana. Eight informants reported receiving at least 34 pounds of meth from Kavis. Investigators recovered about five pounds of meth that were sent to Kavis’ shop in East Missoula and recovered another two pounds of meth during a search of the shop. In addition, the government alleged that law enforcement learned that several packages totaling 28 pounds of meth from known drug associates had been delivered to Kavis’ shop. Court documents also alleged Kavis told informants that he was bringing in 30 pounds of meth per week. Thirty pounds of meth is the equivalent of about 108,720 doses. The government alleged that Kavis always carried a firearm for protection and often had large sums of cash, ranging from $30,000 to $50,000.
Assistant U.S. Attorney Jennifer S. Clark prosecuted the case, which was investigated by the FBI’s Montana Regional Violent Crimes Task Force, the Missoula Police Department and the Flathead County Sheriff’s Office.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Mississippi Pharmacist Pleads Guilty to More than $180-Million Health Care Fraud SchemeRead the Press Release
A Mississippi pharmacist pleaded guilty today for his role in a multimillion-dollar scheme to defraud TRICARE and private insurance companies by paying kickbacks to distributors for the referral of medically unnecessary compounded prescription medications that were ultimately dispensed by his pharmacies. The conduct allegedly resulted in more than $180 million in fraudulent billings, including more than $50 million paid by federal healthcare programs.
According to court documents, David “Jason” Rutland, 42, of Bolton, a pharmacist and co-owner of various compounding pharmacies, admitted that he participated in a scheme to defraud TRICARE and other health care benefit programs by distributing medically unnecessary compounded medications by, among other things: adjusting prescription formulas to ensure the highest reimbursement without regard to efficacy; soliciting recruiters to procure prescriptions for high-margin compounded medications and paying those recruiters commissions based on the percentage of reimbursements paid by pharmacy benefit managers and health care benefit programs, including commissions on claims reimbursed by TRICARE; and routinely and systematically waiving and/or reducing copayments to be paid by beneficiaries and members, including utilizing a purported copayment assistance program to falsely make it appear as if Rutland’s pharmacy and its affiliate compounding pharmacies had been collecting copayments.
Rutland pleaded guilty to conspiracy to defraud the United States and solicit, receive, offer and pay illegal kickbacks, and faces a maximum penalty of five years in prison. Sentencing has been scheduled for Nov. 30. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Rutland must also pay restitution and forfeit all assets traced to the ill-gotten gains.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Darren J. LaMarca for the Southern District of Mississippi; Special Agent in Charge Michelle Sutphin of the FBI’s Jackson Field Office and Special Agent in Charge Cynthia A. Bruce of the Department of Defense Office of Inspector General Defense Criminal Investigative Service (DCIS) Southeast Field Office made the announcement.
The FBI and DCIS are investigating the case.
Trial Attorneys Emily Cohen and Alejandra Arias of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Kathlyn Van Buskirk of the Southern District of Mississippi are prosecuting the case with assistance from Sara Porter and Dustin Davis from the Criminal Division’s Fraud Section.
Mexican National with Extensive Criminal History Found Guilty by Pecos JuryRead the Press Release
PECOS – Yesterday a federal jury in Pecos found Mexican national Graciano Moral-Carrillo, aka Francisco Mora-Carrillo, guilty of one count of illegal entry after seven prior deportations and three prior illegal reentry convictions.
Evidence presented at trial showed that Presidio Border Patrol Agents arrested Moral-Carrillo on March 1, 2021, for being an illegal alien present in the United States.
Court records also disclosed that Moral-Carrillo had numerous other convictions in the U.S., including three for driving while intoxicated in the Odessa/Midland area; one for resisting arrest; one for assaulting a public servant; and one for possession with intent to distribute marijuana.
Moral-Carrillo has remained in federal custody since his arrest on March 1. The sentencing date before U.S. District Judge David Counts has not been set.
U.S. Attorney Ashley C. Hoff of the Western District of Texas and Big Bend Sector Chief Patrol Agent Sean L. McGoffin made the announcement.
U.S. Border Patrol investigated this case. AUSAs Lance Kennedy and Kevin Eaton are prosecuting this case on behalf of the government.
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Mexican National Drug Trafficker Convicted in Beaumont Federal TrialRead the Press Release
BEAUMONT, Texas –A Mexican national residing in Houston, Texas, was convicted at trial of conspiracy charges related to drug trafficking and money laundering, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Fernando Perez-Gomez, 35, of Houston, was convicted by a jury of conspiracy to possess with intent to distribute a controlled substance and conspiracy to commit money laundering today following an eight-day trial before U.S. District Judge Marcia A. Crone.
“The importation of bulk quantities of drugs from Mexico is a pressing public safety issue that impacts cities and towns far beyond the border,” said Acting U.S. Attorney Nicholas J. Ganjei. “EDTX will aggressively seek out and prosecute those that seek to profit by smuggling narcotics into our country and distributing these deadly wares in our communities.”
“The conviction of Perez-Gomez is the result of focusing investigative resources against drug trafficking organizations that import large shipments of hard drugs from Mexico then deliver them to cities throughout the United States,” stated DEA Houston Division Special Agent in Charge Daniel C. Comeaux. “DEA and our partners remain determined to identify, dismantle, and destroy drug trafficking organizations that import and spread their poison in cities across our nation.”
According to information presented in court, from at least May 2014 through May 2016, Perez-Gomez was involved in a conspiracy to traffic drugs from the Houston-area through the Eastern District of Texas and to various destinations for distribution through the United States. The investigation revealed that at least 16 persons were involved in this polydrug conspiracy, which resulted in the seizure of approximately 80 kilograms of cocaine, over four kilograms of methamphetamine, and a kilogram of heroin. Additionally, $2.5 million in cash was seized as part of the investigation.
Perez-Gomez was indicted by a federal grand jury on July 1, 2020, and faces up to life in federal prison at sentencing. The maximum statutory sentences prescribed by Congress are provided here for information purposes, as the sentencings will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the U.S. Probation Office.
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.
This case was investigated by the U.S. Drug Enforcement Administration and the Houston Police Department and prosecuted by Assistant U.S. Attorneys Michelle S. Englade and Jonathan Lee.
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Manhattan Investment Fund Manager Sentenced to 5 Years in Prison for Securities Fraud and Misappropriation SchemeRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced that DONALD LAGUARDIA was sentenced today to 60 months in prison for his securities fraud and misappropriation scheme. LAGUARDIA was the chief executive and co-founder of a New York-based investment firm, L-R Managers, LLC, which managed the LR Global Frontier Master Fund and two related feeder funds (collectively, the “Frontier Funds”). LAGUARDIA was found guilty of securities fraud, investment adviser fraud, and wire fraud following a trial last November before United States District Judge Lewis A. Kaplan, who imposed today’s sentence.
U.S. Attorney Audrey Strauss said: “Donald LaGuardia pitched his clients on frontier market investments, but the Frontier Funds turned out to be a front for fraud. LaGuardia betrayed his clients’ trust by diverting millions to other uses, including his own personal and business expenses. Now LaGuardia has been sentenced to prison for his crimes.”
According to statements in the Indictment, evidence presented during the trial, and other filings and statements at public court proceedings in the case:
From in or about 2013 through in or about 2017, LAGUARDIA solicited approximately $6.4 million from investors for Frontier Funds, which had a stated focus on investments in “frontier” markets in Latin America, Central and Eastern Europe, the Middle East, Africa, and Asia. Contrary to LAGUARDIA’s representations, and in breach of his duties to investors in the Frontier Funds, LAGUARDIA misappropriated investors’ money to finance L-R Managers’ payroll, pay rent for its office space on Park Avenue in Manhattan, and pay hundreds of thousands of dollars in charges on the firm’s credit card, among other unauthorized expenses. Hundreds of thousands of dollars went to the benefit of LAGUARDIA personally.
In one example, in 2013, LAGUARDIA solicited an $800,000 investment in the Frontier Funds from an investor (“Investor-1”). Upon receipt of Investor-1’s money, an L-R Managers employee sent an email to LAGUARDIA and another person asking for approval to forward the $800,000 to the Frontier Funds. LAGUARDIA responded, “Dont [sic] wire anything yet!” LAGUARDIA then caused approximately $390,000 of Investor-1’s investment never to be transmitted to the Frontier Funds, but instead to be used to pay himself approximately $52,000 and for various other personal and business expenses.
By September 2015, L-R Managers faced substantial financial difficulties. On September 1, 2015, an L-R Managers principal sent an email to LAGUARDIA and others at the firm stating that it would be “ethically troubling to accept money into the [Frontier Funds] when [L-R Managers] can no longer support . . . payroll and mission critical services.” Nevertheless, just a few days later, a new investor solicited by LAGUARDIA (“Investor-2”) made a $2 million investment into the Frontier Funds. Prior to this investment, LAGUARDIA concealed his firm’s near insolvency from Investor-2 and did not disclose that the Frontier Funds had been paying substantial expenses for L-R Managers, contrary to the representations in the funds’ offering documents. LAGUARDIA then proceeded, over the course of several months, to use a substantial portion of Investor-2’s investment in the Frontier Funds to continue paying himself and subsidizing his firm’s business expenses.
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LAGUARDIA, 54, of Lavallette, New Jersey, was also sentenced to three years of supervised release. He was further ordered to forfeit $2,571,500 and pay restitution to victims in the amount of $4,039,872.46.
Ms. Strauss praised the investigative work of the U.S. Postal Inspection Service and thanked the U.S. Securities and Exchange Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Margaret Graham and Daniel Loss are in charge of the prosecution.
Manchester Man Sentenced to 120 Months for Methamphetamine TraffickingRead the Press Release
CONCORD - Keith Robertson, 47, of Manchester, was sentenced to 120 months in federal prison for possession of methamphetamine with intent to distribute, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on October 12, 2019, Robertson was a passenger in a vehicle that was stopped by the Barnstead Police for a defective headlight. During the stop, the officer determined that Robertson was the subject of an arrest warrant and placed him under arrest.
The driver subsequently consented to a search of the vehicle. During the search, the officer found evidence of drug use and a scale, as well as a bag containing a drug ledger, approximately $1,600 in cash, and Robertson’s identification card.
After being transported to the police station, Robertson admitted that he had methamphetamine concealed on his person and removed a bag from his pants containing over 132 grams of methamphetamine.
Robertson previously pleaded guilty on March 11, 2021. Upon completion of his sentence, Robertson will be under supervised release for five years.
“Methamphetamine presents a growing danger to the Granite State,” said Acting U.S. Attorney Farley. “In order to protect our community, we work closely with our law enforcement partners to identify and prosecute the drug traffickers who are responsible for distributing methamphetamine and other dangerous drugs in New Hampshire.”
“As methamphetamine seizures are on the rise, DEA stands committed to keeping this highly addictive drug out of the Granite State,” said DEA Special Agent in Charge Brian D. Boyle. “This investigation demonstrates the strength of collaborative law enforcement efforts in New Hampshire.”
This matter was investigated by the Drug Enforcement Administration with assistance from the Barnstead Police Department. The case was prosecuted by Assistant U.S. Attorney Kasey Weiland.
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Madison County Woman Pleads Guilty to Mail Fraud, Wire FraudRead the Press Release
CHARLOTESVILLE, Va. – A Madison County, Virginia woman pleaded guilty yesterday to mail and wire fraud charges related to a scheme in which she stole at least $1.5 million from victims while purporting to have terminal cancer, vast wealth, and connections to celebrities.
According to court documents, Christine F. Anderson, 51, of Reva, Va., owned and operated the publishing companies known as Christine F. Anderson Publishing and Media (CFA) and Sage Wisdom. Anderson took money from book authors but later failed to pay the authors their royalties as owed and did not provide products and services as negotiated. In addition, Anderson often falsely claimed to have been diagnosed with cancer to delay payment to the book authors, while also purporting to maintain vast wealth, and connections to celebrities.
When authors failed to receive the royalty payments they were owed, Anderson made elaborate excuses for the delay, including being busy working with the White House on the State of the Union.
In addition to the book publishing scheme, Anderson also admitted to orchestrating a real estate scheme where she signed contracts for expensive real estate, provided false proof of funds, and then was unable to provide the earnest money deposits. Often, Anderson would sign bad checks for the earnest money deposits, which would never clear. While she was putting contracts on these properties, Anderson took money from individuals helping her in these real estate schemes, promising to pay these individuals back. Anderson used her false interest in the expensive real estate to prove to her victims that she was able to pay back the loans, but never did. Anderson’s excuses for her inability to pay the earnest money deposit and the loans included her false claims of a cancer diagnosis and freezes on her bank accounts, among other excuses.
The total actual loss to victims is between $1.5 and $3.5 million.
“To cover up her expansive fraud scheme, the defendant preyed upon victims’ sympathies, including making false statements about having cancer,” Acting United States Attorney Daniel P. Bubar stated today. “Such behavior is not only unconscionable, but also a serious federal crime. I am proud of the hard work of the FBI and Madison County Sheriff’s Office, which brought Anderson to justice and will restore some measure of resolution to the victims.”
“With this guilty plea, Ms. Anderson has finally accepted responsibility for her actions; and those who were manipulated and suffered losses because of her deceit will see justice served,” stated Special Agent in Charge Stanley M. Meador. “FBI Richmond appreciates the partnership of the Madison County Sheriff’s Office and the Western District of the United States Attorney’s Office during this investigation. If you suspect fraud, please report it to tips.fbi.gov or to your local FBI office.”
Anderson pleaded guilty yesterday to three counts of mail fraud and eight counts of wire fraud. She is scheduled to be sentenced on December 2, 2021 and faces up to 20 years imprisonment on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Federal Bureau of Investigation and the Madison County Sheriff’s Office are investigating the case.
Assistant U.S. Attorney Kate Rumsey and Madison County Deputy Commonwealth’s Attorney Wade Gelbert are prosecuting the case.
If you believe you are a victim of fraud or have information about the allegations in this case, please contact the FBI in Charlottesville at 434-293-9663.
Local Felon Indicted on Firearms ChargeRead the Press Release
PITTSBURGH – A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of possessing ammunition as a convicted felon, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Clentai Arthor Wilcox, age 32, as the sole defendant.
According to the Indictment, on or about March 22, 2021, knowing he was a previously convicted felon, Wilcox knowingly possessed ammunition.
The law provides for a maximum total sentence of not more than ten years in prison, a fine not to exceed $250,000.00, a term of supervised release of not more than three years, or a combination thereof. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Benjamin J. Risacher is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pennsylvania Board of Probation and Parole conducted the investigation leading to the Indictment in this case.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Lawrence Man Pleads Guilty to Drug Distribution ChargesRead the Press Release
BOSTON – A Lawrence man pleaded guilty today in federal court in Boston to cocaine distribution charges.
Anthony Rafael Corcino, 33, pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute five kilograms or more of cocaine and one count of attempted possession with intent to distribute five kilograms or more of cocaine. U.S. District Court Judge Patti B. Saris scheduled sentencing for Oct. 19, 2021. Corcino was charged in October 2020.
On or about May 19, 2020, Corcino sought to obtain a parcel shipped to a business in Wilmington, which was subsequently found to contain 23 kilograms of cocaine. After initially failing to obtain the drugs, Corcino had multiple communications with an undercover agent in which he attempted to obtain the parcel. According to court documents, the value of 23 kilograms of cocaine is well over $500,000.
The charge of conspiracy to distribute and to possess with intent to distribute five kilograms or more of cocaine provides for a sentence of at least 10 years and up to life in prison, five years of supervised release and a fine of up to $10 million. The charge of attempted possession with intent to distribute five kilograms or more of cocaine provides for a sentence of at least 10 years and up to life in prison, at least five years of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Wilmington Police Chief Joseph Desmond made the announcement. Assistant U.S. Attorney Craig Estes of Mendell’s Narcotics and Money Laundering Unit is prosecuting the case.
Justice Department Reaches Settlement with Los Angeles Towing Company for Illegally Selling a Car Owned by a U.S. MarineRead the Press Release
The Justice Department today announced that it reached an agreement with Los Angeles towing company Black and White Towing Inc. to resolve allegations that it illegally auctioned off an active-duty U.S. Marine’s car, in violation of the Servicemembers Civil Relief Act (SCRA).
The SCRA is a federal law that provides a variety of financial and housing protections to members of the U.S. military. The law prohibits a towing company from auctioning off a vehicle owned by a servicemember unless it first obtains an order from a court allowing it to do so.
The department’s lawsuit, which was filed today along with the settlement, alleges that Black and White illegally auctioned a U.S. Marine’s 2014 Honda Accord while the Marine was stationed at Camp Pendleton in San Diego County, California. The Marine’s car was struck by another vehicle while it was legally parked and unoccupied. Black and White towed the car to its lot in Pacoima, California. When the Marine learned that her vehicle had been towed, she contacted Black and White and told them that she was in the military and would be working with the other driver’s insurance company to retrieve the vehicle. The complaint also alleges that the Marine’s car contained her military uniform and several military awards and certificates, and Department of Motor Vehicle records indicated that she had obtained her vehicle loan through Navy Federal Credit Union. Before the insurance company could arrange to inspect or retrieve the vehicle, Black and White sold it at auction, without a court order. As a result, the Marine lost the use and ownership of the car, but still had to continue making her monthly car loan payments to Navy Federal.
Under the proposed settlement, which is subject to approval by the U.S. District Court for the Central District of California, Black and White must pay $22,000 in compensation to the Marine and a $5,000 civil penalty to the U.S. Treasury. Black and White will also be required to adopt new policies and implement new training requirements.
“When towing companies ignore their legal obligations under the Servicemembers Civil Relief Act, it can have serious financial consequences for servicemembers and their families,” said Assistant Attorney General Kristen Clarke of the Civil Rights Division. “We hope this settlement encourages all towing companies to review and improve their policies and ensure that the rights of all servicemembers are honored and respected.”
Servicemembers and their dependents who believe their SCRA rights have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations can be found at http://legalassistance.law.af.mil/.
The Justice Department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section and U.S. Attorney’s Offices throughout the country. Since 2011, the department has obtained over $474 million in monetary relief for over 120,000 servicemembers through its enforcement of the SCRA. Additional information on the department’s enforcement of the SCRA and other laws protecting servicemembers is available at www.servicemembers.gov.
Jury convicts Laredo man on cocaine chargesRead the Press Release
LAREDO, Texas – A Laredo federal jury has convicted a 35-year-old legal permanent resident for conspiracy and possession with intent to distribute more than 500 grams of cocaine, announced Acting U.S. Attorney Jennifer B. Lowery.
The jury deliberated for approximately four hours before convicting Baldemar Guadiana following a two-day trial which included four witnesses.
At trial, the jury heard about the investigation which resulted in the discovery of approximately 3.68 kilograms of cocaine.
On Jan. 31, 2018, an undercover officer received eight bundles of narcotics at a local grocery store parking lot. Later that day, Guadiana contacted the officer and made arrangements to meet and take possession of the cocaine. Once at the pre-arranged location, Guadiana parked behind the officer. He then took the drugs and attempted to leave.
Law enforcement soon stopped him and took him into custody. authorities ultimately discovered a total of nearly four kilograms of cocaine in the eight bundles.
The defense attempted to convince the jury Guadiana had no knowledge the bundles in his truck contained narcotics. They also contended law enforcement did not perform an adequate and thorough enough investigation to convict him. The jury disagreed and found him guilty as charged.
U.S. District Judge Marina Garcia Marmolejo presided over trial and set sentencing for Oct. 25. At that time, Guadiana faces up to 40 years of imprisonment and a possible $5 million maximum fine. Not a U.S. citizen, he could lose his status as a legal permanent resident.
Previously released on bond, Guadiana was taken into custody following the trial today where he will remain pending his sentencing.
Homeland Security Investigations conducted the investigation with the assistance of the Laredo Police Department. Assistant U.S. Attorneys José Angel Moreno and Yoona Lim are prosecuting the case.
Judge Finds Monongahela Man Guilty of Conspiring to Possess CocaineRead the Press Release
PITTSBURGH, PA - After deliberating less than one hour, Chief United States District Judge Mark R. Hornak found Tyler Mucci guilty of one count of conspiracy to distribute and possess with intent to distribute cocaine, Acting United States Attorney Stephen R. Kaufman announced today.
Mucci, 33, of Monongahela, PA 15063 was tried before Chief United States District Judge Mark R. Hornak in Pittsburgh, Pennsylvania.
According to Assistant United States Attorney Shaun E. Sweeney, who prosecuted the case, the evidence presented at trial established that Mucci conspired with other individuals to possess with the intent to distribute a quantity of cocaine in the Mon Valley area from March 2017 through December 2017. Evidence at trial showed that Mucci was one of the lower level participants in the conspiracy.
Judge Hornak has not yet set a date for sentencing The law provides for a total sentence of 30 years in prison, a fine of $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued the defendant’s release on bond.
The Federal Bureau of Investigation and Pennsylvania State Police conducted the investigation that led to the prosecution of Tyler Mucci.
Illegal Alien Indicted for Attempted Coercion of a Minor for Sex and Illegal Re-entry after DeportationRead the Press Release
PITTSBURGH, Pa. – An illegal alien from Guatemala has been indicted by a federal grand jury in Pittsburgh on charges of attempted coercion and enticement of a minor to engage in illegal sexual activity and illegal reentry of a removed alien, Acting United States Attorney Stephen R. Kaufman announced today.
The two-count Indictment named Horacio Miranda-Mejia, 26, of Guatemala as the sole defendant.
According to the Indictment, from on or about June 22, 2021, until on or about June 25, 2021, Miranda-Mejia used cellular telephone networks and the internet to knowingly attempt to persuade, induce, entice, or coerce an individual who had not attained the age of 18, to engage in unlawful sexual activity. In addition, on June 25, 2021, Miranda-Mejia, an alien, was unlawfully present in the United States after having been previously deported.
The law provides for a mandatory minimum sentence of ten years and a maximum total sentence of life in prison, a fine of not more than $250,000.00, supervised release for any term of years not less than five or a combination. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Benjamin J. Risacher is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, as well as United States Immigration and Customs Enforcement conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Hunter Army Airfield contractor charged with lying to investigators about violent assaultRead the Press Release
SAVANNAH, GA: A contractor at Hunter Army Airfield has been indicted on three felony charges after Army investigators allege he falsely claimed to have been assaulted on post.
Eric T. Nakamura, 49, of Beaufort, S.C., is charged with three counts of False Statement Made to a Department or Agency of the United States, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. Each charge carries a statutory penalty upon conviction of up to five years in federal prison, along with substantial financial penalties and up to five years of supervised release following any prison term. There is no parole in the federal system.
“Army investigators spent substantial time and taxpayer resources investigating this alleged assault,” said Acting U.S. Attorney Estes. “We commend their diligence in seeking a resolution to this case.”
Nakamura has appeared before Magistrate Judge Christopher L. Ray for arraignment and entered a plea of not guilty to the charges.
The indictment alleges that on July 20, 2020, Nakamura falsely claimed to a U.S. Army Criminal Investigation Command (CID) special agent that Nakamura was “stabbed with a knife and robbed by an unknown person in an Army uniform with the name tape ‘Brown’ while in the lab in which he worked at Hunter Army Airfield. The indictment alleges that Nakamura repeated the claim in subsequent interviews with CID special agents on Oct. 14, 2020, and again Feb. 1, 2021, despite knowing “he had stabbed himself with a knife, and had not been robbed.”
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
U.S. Army Criminal Investigation Command is investigating the case, which is being prosecuted for the United States by Southern District of Georgia Special Assistant U.S. Attorney Darron J. Hubbard.
Honolulu woman pleads guilty to unauthorized removal and retention of classified materialRead the Press Release
HONOLULU – Asia Janay Lavarello, 31, pleaded guilty today in the U.S. District Court for the District of Hawaii to one count of knowingly removing classified information concerning the national defense or foreign relations of the United States and retaining it at an unauthorized location. Chief U.S. District Court Judge J. Michael Seabright took Lavarello’s guilty plea and scheduled sentencing for November 4, 2021.
Lavarello, a Department of Defense employee, admitted to having removed and retained numerous classified documents, writings, and notes relating to the national defense or foreign relations of the United States without authority. While working as an Executive Assistant at the United States Indo-Pacific Command in Hawaii, Lavarello accepted a temporary assignment working at the U.S. Embassy in the Philippines. There, Lavarello had access to classified computers and documents, and attended classified meetings as part of her official duties. Court documents list several specific instances in which Lavarello mishandled classified material of the United States.
On March 20, 2020, Lavarello removed classified documents from the U.S. Embassy Manila. She took the classified documents to her hotel room where she hosted a dinner party later that evening. Among the guests were two foreign nationals. During the party, a co-worker at the U.S. Embassy Manila discovered the documents, which included documents classified at the SECRET level. Lavarello’s temporary assignment in the Philippines was ultimately terminated due to her mishandling of SECRET classified documents.
Around March 28, 2020, Lavarello returned to Hawaii. In June of that year, investigators executed a search warrant at her workplace at the United States Indo-Pacific Command. In her desk, investigators found a notebook containing Lavarello’s handwritten notes of meetings she attended while working at the U.S. Embassy Manila. The notes contained facts and information classified at the CONFIDENTIAL and SECRET levels. Investigators determined that Lavarello did not send the classified notebook via secure diplomatic pouch from the U.S. Embassy Manila to Hawaii, as required. Instead, she personally transported the documents to Hawaii, unsecured, and kept the classified notebook at an unsecure location until at least April 13, 2020.
Investigators also discovered that Lavarello included information from the classified notebook in a January 16, 2020 email from her personal Gmail account to her unclassified U.S. Government email account. The information she transmitted over unsecure networks was classified at the SECRET level.
The charge of unauthorized removal and retention of classified documents or material provides for a sentence of up to five years in prison, three years of supervised release, and a fine of $250,000. According to a plea agreement filed in the case, the United States will not file charges against Lavarello related to false statements she made to the Federal Bureau of Investigation and the Naval Criminal Investigative Service. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Judith A. Philips; Acting Assistant Attorney General Mark Lesko; Steven B. Merrill, Special Agent in Charge of the Federal Bureau of Investigation, Honolulu Field Division; and Norman Dominesey, Special Agent in Charge of the Naval Criminal Investigative Service, Hawaii Field Office made the announcement today.
Acting U.S. Attorney for the District of Hawaii Judith A. Philips said: “Protecting the national security of the United States is our highest priority, and failing to adhere to the most basic security practices, as this defendant did, is contrary to this critical priority.”
“Government employees are entrusted with a responsibility to ensure classified information is properly handled and secured. Asia Janay Lavarello failed in her duty when she removed classified documents from the U.S. Embassy Manila,” said Special Agent in Charge Steven Merrill. “Today’s guilty plea is a direct result of the professional and thorough investigation conducted by the FBI and NCIS. We will always work together with our partners to keep our communities safe and bring perpetrators to justice.”
“The NCIS appreciates the opportunity to have worked in partnership with the FBI and the United States Attorney’s Office to bring this investigation to a successful conclusion,” said NCIS Special Agent in Charge Norman Dominesey. “For those entrusted with safeguarding our national security interests, this case underscores the far-reaching ramifications of violating that trust.”
This conviction is the result of a joint investigation between the FBI and NCIS. Assistant U.S. Attorney Mohammad Khatib and Trial Attorney Stephen Marzen of the Justice Department’s National Security Division are prosecuting the case.
Hollis Man Sentenced for Drug and Firearms OffensesRead the Press Release
PORTLAND, Maine: A Hollis man was sentenced today in federal court for possessing fentanyl with intent to distribute and possessing a firearm in furtherance of drug trafficking, Acting U.S. Attorney Donald E. Clark announced.
U.S. District Judge D. Brock Hornby sentenced Dustin Homewood, 23, to six years in prison and three years of supervised release. Homewood entered a guilty plea on February 2, 2021.
According to court records, on May 31, 2020, the Rumford Police Department responded to a report of a male under the influence of drugs at a gas station. Officers found Homewood unconscious behind the wheel of a car. Once Homewood was alert, officers discovered a set of brass knuckles and a loaded firearm in his pocket. An ensuing search of his vehicle resulted in the seizure of another firearm and more than 300 grams of fentanyl.
The Rumford Police Department and the FBI’s Safe Streets Task Force investigated the case with assistance from the Maine State Police.
Guatemalan National Sentenced for Illegal ReentryRead the Press Release
BOSTON – A Guatemalan national was sentenced yesterday in federal court in Boston for illegal reentry after deportation.
Franklin Vasquez Ramirez, 39, was sentenced by U.S. District Court Judge Leo T. Sorokin to five months in prison and three years of supervised release. Ramirez will be subject to deportation proceedings upon completion of his sentence. Earlier in the hearing, Ramirez pleaded guilty to one count of unlawful reentry of a deported alien. Ramirez was indicted on June 9, 2021.
In December 2020, law enforcement encountered Ramirez in Ashland and determined him to be illegally present in the United States. Ramirez was previously deported in November 2010.
Acting United States Attorney Nathaniel R. Mendell; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; and Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations in Boston made the announcement today. Assistant U.S. Attorney Benjamin A. Saltzman of Mendell’s Major Crimes Unit prosecuted the case.
Glastonbury Business Owner Admits Filing False Income Tax ReturnsRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and Ramsey E. Covington, Acting Special Agent in Charge of IRS Criminal Investigation in New England, announced that GEORGE LEE, 50, of Glastonbury, waived his right to be indicted and pleaded guilty today to a federal tax offense.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding before U.S. Magistrate Judge Donna F. Martinez occurred via videoconference.
According to court documents and statements made in court, Lee own and operates American U.S.A. Paving. For the 2015 through 2018 tax years, Lee provided his tax return preparer with information that substantially understated the gross receipts for the paving business. As a result, Lee’s personal income tax returns for the 2015 through 2018 tax years, which Lee authorized his preparer to file with the IRS, underreported his income by a total of more than $588,000, resulting in a tax loss of $154,238.
Lee pleaded guilty to one count of filing a false tax return, an offense that carries a maximum term of imprisonment of three years. He is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on October 13, 2021, in Hartford.
Lee is released pending sentencing.
This investigation is being conducted by the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Gladstone Man Indicted for Producing, Distributing Child PornographyRead the Press Release
KANSAS CITY, Mo. – A Gladstone, Missouri, man was indicted by a federal grand jury today for producing and attempting to distribute child pornography.
Joshua Paul Goodspeed, 45, was charged in a two-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Goodspeed on June 21, 2021.
Today’s indictment charges Goodspeed with one count of producing child pornography, which involved two child victims, and one count of attempting to distribute child pornography over the internet.
According to an affidavit filed in support of the original criminal complaint, FBI agents identified Goodspeed during an investigation of a secure file sharing platform, identified in court documents as “Cloud A.” Goodspeed allegedly was among users of the platform who accessed, imported, or maintained video files from a series that depicts the sadistic sexual exploitation, torture, and abuse of a toddler.
Law enforcement officers executed a search warrant at Goodspeed’s residence on June 16, 2021. Investigators found hundreds of files of child pornography on Goodspeed’s iPhone, laptop, and external hard drive, including some photos of child victims allegedly taken by Goodspeed. Goodspeed’s file-sharing application account contained more than 1,000 videos of child pornography.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former police officer gets 30 years for violating the civil rights of two menRead the Press Release
McALLEN, Texas - A 26-year-old former local police officer has been ordered to federal prison after sexually assaulting two men while in his custody, announced Acting U.S. Attorney Jennifer B. Lowery.
A federal jury deliberated for approximately two hours before returning guilty verdicts March 10 against Matthew Lee Sepulveda, Edinburg, on two violations of civil rights following a two-day trial.
Today, U.S. District Judge Randy Crane ordered Sepulveda to serve a 360-month sentence to be immediately followed by five years of supervised release. In handing down the sentence, Judge Crane commented on the shame and embarrassment to law enforcement as a result of Sepulveda’s actions. The court further noted its disappointment in Sepulveda’s lack of empathy for the victims.
“The vast majority of law enforcement officers in the United States are deeply committed to fulfilling their oath to serve and protect our community,” said Special Agent in Charge Christopher Combs of the FBI. “Sepulveda betrayed this oath by preying on his victims, exploiting his authority to serve his own personal, depraved interests.”
Sepulveda served as a law enforcement officer with the Progreso Police Department from April 17 to July 2, 2019. The jury heard that while acting under his authority as a uniformed police officer, Sepulveda performed oral sex on two victims while they were in his custody.
At trial, The jury heard from the two men.
The first explained that after he was arrested, Sepulveda took him from the jail cell and escorted him to another office at the police department. Sepulveda then began asking him questions of a sexual nature and performed oral sex on him. The victim testified because Sepulveda was a police officer, he was scared and did not think he could leave.
The evidence showed that Sepulveda’s DNA was found on the victim’s underwear. The jury also heard that Sepulveda logged the victim’s arrest and case after the fact.
The second victim, who was only 17 at the time, was taken to the police department because he was unable to contact his parents subsequent to a traffic stop in which he was a passenger. He described how Sepulveda took him to an office located within the police department where he began asking the victim questions of a sexual nature and also performed oral sex on the victim.
The defense attempted to portray one of the victims as a liar and questioned some of the evidence. The jury was unconvinced and found Sepulveda guilty of two civil rights violations. They also found that on the second count, his conduct resulted in bodily injury and included attempted aggravated sexual abuse, aggravated sexual abuse and kidnapping.
Sepulveda will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Hidalgo County Sheriff’s Office conducted the investigation with the assistance of the FBI. Assistant U.S. Attorneys Sarina S. DiPiazza and Angel Castro prosecuted the case.
Former New Jersey Resident Admits Conspiring to Distribute Fentanyl AnalogueRead the Press Release
NEWARK, N.J. – A former New Jersey resident today admitted conspiring to distribute a fentanyl analogue, Acting U.S. Attorney Rachael A. Honig announced.
Darryl Hinkson, 46, formerly of Jersey City, New Jersey, pleaded guilty by videoconference before U.S. District Judge Claire C. Cecchi to an information charging him with conspiracy to distribute and possess with the intent to distribute 100 grams or more of a fentanyl analogue.
According to documents filed in this case and statements made in court:
From Sept. 11, 2018, to Oct. 18, 2018, Hinkson conspired with others to distribute pills that contained a fentanyl analogue, an illegal controlled substance. On Sept. 11, 2018, Hinkson met with an individual (Individual-1) and sold Individual-1 approximately 20 pills of purported “Percocet” and 20 pills of purported “Xanax” in exchange for U.S. currency. On Sept. 25, 2018, Hinkson again met with Individual-1 and sold Individual-1 550 pills of purported “Percocet” and approximately 300 pills of purported “Xanax” in exchange for U.S. currency. The pills were not, in fact, Percocet or Xanax, but instead contained a fentanyl analogue.
The count of conspiracy to distribute and possess with intent to distribute fentanyl analogue carries a maximum penalty of life in prison and a fine of $10 million. Sentencing is scheduled for Dec. 9, 2021.
Acting U.S. Attorney Honig credited special agents and task force officers of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Adam Baker of the Opioid Abuse Prevention and Enforcement Unit.
Former New Bedford Police Union Treasurer Agrees to Plead Guilty to Stealing Union FundsRead the Press Release
BOSTON – A former New Bedford Police Department (NBPD) officer and NBPD Union Treasurer has agreed to plead guilty to stealing nearly $50,000 in union funds.
Joshua Fernandes, 42, of New Bedford, was charged with one count of wire fraud. A plea hearing has not yet been scheduled.
According to the charging documents, Fernandes abused the trust placed in him by fellow union members by using nearly $50,000 in union funds to pay for personal expenses including vacations, family outings, and a monthly wireless family phone plan, among other things. Fernandes carried out his scheme by reimbursing his personal credit card accounts with union funds and by using the union’s credit cards to pay directly for non-union expenses.
The charging statute provides a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Jonathan Russo, District Director of U.S. Department of Labor, Office of Labor Management Standards, made the announcement today. Assistant U.S. Attorney Eugenia M. Carris, Deputy Chief of Mendell’s Public Corruption & Special Prosecutions Unit, is prosecuting the case.
Former Kentucky Attorney Sentenced to One Year of Probation for Conspiracy to Defraud the Food and Drug AdministrationRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jonathan Clark Baird, age 45, of Louisville, Kentucky, was sentenced on July 19, 2021, to one year of probation by Chief United States District Court Judge John E. Jones, III, for conspiracy to defraud the Food and Drug Administration.
According to Acting United States Attorney Bruce D. Brandler, Baird was an attorney licensed to practice law in the Commonwealth of Kentucky focusing on steroid and nutritional supplements law. Baird conspired with two Internet-based businesses, Total Trading LLC and L and P, LLC, from December 2011 to on or about December 2014, to defraud the United States. In particular, Baird agreed to use his knowledge of steroid laws, nutritional supplement laws and the FDA’s regulatory and enforcement practices to instruct these companies on the methods to use to interfere and obstruct the United States Food and Drug Administration enforcement and regulatory oversight, including instructing his co-conspirators on the steps to be taken to fraudulently conceal the true nature of their illegal sale of prescription drugs from the FDA.
Baird’s coconspirators, Paul Leix and co-defendant, Dominic Pileggi, were involved in a business, L&P Trading, which used the internet to market and distribute peptides (a type of amino acid), along with other bodybuilding chemicals, to individuals seeking to enhance their physiques. Leix and Pileggi marketed these products on their website while providing a disclaimer that the substances were not for human consumption and use (for research purposes only). Customers who visited the website seeking these products for bodybuilding purposes would falsely attest that they were buying the chemicals for research purposes. By marketing the products to the online bodybuilding community, Leix and Pileggi knew that purchasers would use the products for personal consumption rather than research. The “research only” disclaimer was a ruse to circumvent the regulatory authority of the Food and Drug Administration (FDA). L&P Trading advertised on body-building billboards and sites and Leix and Pileggi were not properly licensed or had the required approvals to manufacture, sell or prescribe these products. Leix and Pileggi also sold these drugs and their chemical components to other illegal distributors and manufacturers, including Total Trading, LLC, a company owned and operated by co- conspirator Thomas Keightly, located in Lebanon County. Keightly, in turn, sold directly to end users in the same manner as Leix and Pileggi.
Paul Leix was sentenced to four months’ imprisonment and Thomas Keightly was sentenced to 10 months’ imprisonment for conspiracy to commit money laundering and delivery of altered or misbranded drugs by fraud. Pileggi was sentenced to time-served for conspiracy to commit money laundering and introduction of misbranded drugs into interstate commerce.
“Selling unapproved prescription drugs in the U.S. marketplace is illegal and puts consumers’ health at risk,” said Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations Metro Washington Field Office. “We remain fully committed to disrupting and dismantling illegal drug distribution networks that take steps to avoid FDA regulatory scrutiny at the expense of public health and safety.”
The cases were investigated by the Food and Drug Administration and the Internal Revenue Service Criminal Investigation. Assistant United States Attorney Joseph Terz prosecuted the cases.
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Former Falmouth Resident Pleads Guilty to Accessing Child PornographyRead the Press Release
PORTLAND, Maine: A former Falmouth resident pleaded guilty today in U.S. District Court in Portland to accessing child pornography with intent to view, Acting U.S. Attorney Donald E. Clark announced.
According to court records, in March 2015, agents with Homeland Security Investigations were investigating the sharing of child pornography using Ares, a peer-to-peer file-sharing program. They downloaded a child pornography video from an internet protocol address that was determined to be assigned to a residence in Falmouth. Agents obtained a search warrant for the residence and executed it in May 2015. They found a laptop computer in the bedroom of Aaron Cassidy, 48, that was later found to contain evidence of the Ares file-sharing program, as well as images and videos of minors engaged in sexually explicit conduct.
Cassidy faces a maximum of 10 years in prison, a $250,000 fine and a term of supervised release of at least five years and up to life. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Homeland Security Investigations investigated the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Bureau of Prisons Corrections Officer Pleads Guilty to Sexually Abusing an Inmate and Witness TamperingRead the Press Release
Eric Todd Ellis, 32, a former Bureau of Prisons (BOP) corrections officer at the FCI-Aliceville facility in Aliceville, Alabama, pleaded guilty today in federal court to one count of sexual abuse of a ward and one count of tampering with a witness.
According to court documents, on or about June 11, 2020, Ellis knowingly engaged in a sexual act with a female inmate while in the back of the laundry room of the prison. At the time, Ellis was on-duty and acting in his capacity as a corrections officer. The female inmate was in official detention and under Ellis’s custodial authority. Ellis subsequently admitted his conduct to another corrections officer.
Thereafter, the U.S. Department of Justice Office of the Inspector General (OIG) began investigating Ellis’s conduct. While that investigation was ongoing, Ellis made the following statements – on a recorded call – to that corrections officer (to whom he had previously admitted his conduct) in reference to the federal investigation and his conduct: “Just tell [the OIG agents], yeah, we’re friends, but, I mean, you hadn’t really talked to me about it. And when you have it’s – I’ve just told you that nothing happened.” Ellis admitted in the plea agreement that he made those statements because was attempting to persuade that other corrections officer to provide false information to OIG agents about his sexual abuse of the female inmate.
“Inmates detained inside jails and prisons have the right to be free from sexual assaults and sexually abusive behavior,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Department of Justice will continue to hold accountable prison employees who exploit their positions of power to sexually abuse individuals in their custody, and then attempt to cover up their misconduct. Corrections officers who commit sexual assault have no place inside the Bureau of Prisons, and we will continue to fight for justice for victims of these despicable crimes.”
“The Department of Justice strives to maintain a safe, secure and supportive environment for prison inmates, and one that promotes the successful reentry of inmates into society,” said U.S. Attorney Prim F. Escalona. “My office works closely with the OIG and the Civil Rights Division to investigate and prosecute any sexual abuse of inmates by prison employees.”
“Ellis sexually abused an inmate in his custody and then tried to coerce another correctional officer to help him cover up his crime,” said Special Agent in Charge James F. Boyersmith of the Justice Department’s Office of the Inspector General Miami Field Office. “The DOJ Office of the Inspector General will continue to investigate and bring to justice anyone who engages in this kind of behavior.”
A sentencing hearing is scheduled for Oct. 26.
This case was investigated by the Atlanta Division of the OIG. Executive Assistant U.S. Attorney Robert Posey and Assistant U.S. Attorney Robin Mark of the Northern District of Alabama and Special Litigation Counsel Fara Gold and Trial Attorney Anna Gotfryd of the Criminal Section of the Civil Rights Division of the U.S. Department of Justice are prosecuting the case.
Former Bureau of Prisons Corrections Officer Pleads Guilty to Sexually Abusing an Inmate and Witness TamperingRead the Press Release
BIRMINGHAM, Ala. – Eric Todd Ellis, 32, a former Bureau of Prisons (BOP) corrections officer at the FCI-Aliceville facility in Aliceville, Alabama, pleaded guilty today in federal court to one count of sexual abuse of a ward and one count of tampering with a witness.
According to court documents, on or about June 11, 2020, Ellis knowingly engaged in a sexual act with a female inmate, while in the back of the laundry room of the prison. At the time, Ellis was on-duty and acting in his capacity as a corrections officer. The female inmate was in official detention and under Ellis’s custodial authority. Ellis subsequently admitted his conduct to another corrections officer.
Thereafter, the U.S. Department of Justice Office of the Inspector General (OIG) began investigating Ellis’s conduct. While that investigation was ongoing, Ellis made the following statements – on a recorded call – to that corrections officer (to whom he had previously admitted his conduct) in reference to the federal investigation and his conduct: “Just tell [the OIG agents], yeah, we’re friends, but, I mean, you hadn’t really talked to me about it. And when you have it’s – I’ve just told you that nothing happened.” Ellis admitted in the plea agreement that he made those statements because was attempting to persuade that other corrections officer to provide false information to OIG agents about his sexual abuse of the female inmate.
“Inmates detained inside jails and prisons have the right to be free from sexual assaults and sexually abusive behavior. The Department of Justice will continue to hold accountable prison employees who exploit their positions of power to sexually abuse individuals in their custody, and then attempt to cover up their misconduct,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Corrections officers who commit sexual assault have no place inside the Bureau of Prisons, and we will continue to fight for justice for victims of these despicable crimes.”
“The Department of Justice strives to maintain a safe, secure, and supportive environment for prison inmates, and one that promotes the successful reentry of inmates into society,” said U.S. Attorney Prim F. Escalona. “My office works closely with the OIG and Civil Rights Division to investigate and prosecute any sexual abuse of inmates by prison employees.”
“Ellis sexually abused an inmate in his custody and then tried to coerce another correctional officer to help him cover up his crime. The DOJ Office of the Inspector General will continue to investigate and bring to justice anyone who engages in this kind of behavior,” said Special Agent in Charge James F. Boyersmith of the Justice Department’s Office of the Inspector General Miami Field Office.
A sentencing hearing is scheduled for October 26.
This case was investigated by the Atlanta Division of the OIG. Executive Assistant U.S. Attorney Robert Posey and Assistant U.S. Attorney Robin Mark of the Northern District of Alabama and Special Litigation Counsel Fara Gold and Trial Attorney Anna Gotfryd of the Criminal Section of the Civil Rights Division of the U.S. Department of Justice are prosecuting the case.
Former Billings rheumatologist settles alleged health care fraud claims for $2 millionRead the Press Release
BILLINGS – A former Billings rheumatologist and his business agreed to settle alleged civil False Claims Act violations regarding his practice for a $2,070,664 total payment, Acting U.S. Attorney Leif M. Johnson said today.
Dr. Enrico Arguelles, a former rheumatologist, and his business, Arthritis and Osteoporosis Center (AOC), which closed in September 2018, entered into a civil settlement agreement with the U.S. Attorney’s Office for the District of Montana on July 14, 2021. The terms of the settlement require Arguelles and AOC to pay a settlement amount of $1,268,646 and to relinquish any claim to $802,018 in Medicare payment suspensions that have been held in escrow for AOC since Oct. 11, 2017 by the Centers for Medicare and Medicaid.
“This civil settlement resolves claims of improper medical treatments and false billing to a federal program. Over billed and unnecessary claims, like the ones at issue in this case, drive up the costs for providing care to the people who really need it. Medical providers who attempt to enrich themselves by submitting false and exaggerated claims to federal health benefit programs, like Medicare, will be investigated and held responsible. I want to thank our office’s team of health care fraud investigators, the Department of Health and Human Services Office of Inspector General and the FBI for their work on this case,” said Acting U.S. Attorney Johnson.
“Patients and taxpayers expect physicians to make decisions based on medical necessity, not on boosting the physician’s profits, as alleged in this case,” said Special Agent in Charge Curt L. Muller of the U.S. Department of Health and Human Services Office of Inspector General. “Working with our law enforcement partners, we will hold accountable individuals who provide medically unnecessary treatments and pass along the cost to taxpayers.”
The United States contended that it had certain claims against Arguelles and AOC arising from the diagnosis and treatment of rheumatoid arthritis, including the improper billing for MRI scans, improper billing for patient visits, and the use of biologic infusions such as Remicade for certain patients who did not have seronegative rheumatoid arthritis, from Jan. 1, 2015 through AOC’s closure in September 2018.
The Settlement Agreement is neither an admission of liability by Arguelles or AOC, nor a concession by the United States that its claims are not well founded.
Assistant U.S. Attorney Michael A. Kakuk represented the United States in this matter, which was investigated by the U.S. Attorney’s Office’s Health Care Fraud Investigative Team, the Department of Health and Human Services Office of Inspector General and the FBI.
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Former Beardstown Man Sentenced to 33 Months in Prison for Defrauding School DistrictsRead the Press Release
URBANA, Ill. –Daniel Brue, 48, formerly of Beardstown, Illinois, was sentenced on July 19, 2021, to 2 years and 9 months in federal prison, to be followed by 3 years of supervised release, following his conviction on four counts of wire fraud related to his theft from two area school districts. Brue also was ordered to pay $343,009.52 in restitution.
Brue, who pleaded guilty to the charges, admitted that he abused his position of trust while working as the superintendent for the Bement Community Unit School District #5, and, later, the Meridian Community Unit School District #15. Brue embezzled money from both school districts by creating and registering a fake company and then fraudulently invoicing the school districts for work never performed. Brue stole money from the districts between 2011 and 2019.
At the sentencing hearing, U.S. District Court Judge Colin S. Bruce noted that Brue’s scheme was not “simple” and that Brue took efforts to conceal his theft. Recognizing that the money could have been used to help children, the judge observed that Brue’s crimes would have a long-term, detrimental impact on school districts that were already struggling. Bruce permitted Brue, who presently resides in Virginia, Illinois, to remain on bond prior to reporting to the Bureau of Prisons to serve his sentence.
“School superintendents and other public servants serve as leaders and role models to students and the community at large,” said Acting U.S. Attorney Douglas J. Quivey. “When they abuse the public trust, prosecution serves to restore the trust and reminds us all that public misconduct will not be tolerated.”
“School districts, especially those in our rural areas, count on every penny to provide a quality education for their students,” said Sean M. Cox, Federal Bureau of Investigation Special Agent in Charge, Springfield Division. “Over the span of 8 years, Daniel Brue embezzled school funds, funds which could have been put toward valuable supplies for the students and staff. Mr. Brue deprived students, and the educators teaching them, from having all available resources to provide the best educational experience, and that can never be replaced. This sentence sends a clear message that the FBI will continue to dedicate our investigative resources to stop anyone who engages in fraudulent activity to deprive others.”
Agents from the Federal Bureau of Investigation, Springfield Field Office, investigated the case. Assistant United States Attorneys Rachel Ritzer and Melissa Moody represented the government in the prosecution.
Former Advisor to Presidential Candidate Among Three Defendants Charged with Acting as Agents of a Foreign GovernmentRead the Press Release
BROOKLYN, NY – A seven-count indictment was unsealed today in federal court in Brooklyn charging Thomas Joseph Barrack, Matthew Grimes, and Rashid Sultan Rashid Al Malik Alshahhi, also known as “Rashid Al Malik” and “Rashid Al‑Malik,” a citizen of the United Arab Emirates (UAE), with acting and conspiring to act as agents of the UAE between April 2016 and April 2018. The indictment charges conduct relating to the defendants’ unlawful efforts to advance the interests of the UAE in the United States at the direction of senior UAE officials by influencing the foreign policy positions of the campaign of a candidate (the “Candidate”) in the 2016 United States Presidential Election (the “Campaign”) and, subsequently, the foreign policy positions of the United States government in the incoming administration, as well as seeking to influence public opinion in favor of UAE interests. The indictment also charges Barrack with obstruction of justice and making multiple false statements during a June 20, 2019 interview with federal law enforcement agents.
Barrack and Grimes were arrested this morning in California and are scheduled to make their initial appearances this afternoon before United States Magistrate Judge Patricia Donahue at the federal courthouse in Los Angeles. Alshahhi remains at large.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, Mark J. Lesko, Acting Assistant Attorney General of the Justice Department’s National Security Division, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrests and indictment.
“As alleged, the defendants, using their positions of power and influence in a presidential election year, engaged in a conspiracy to illegally advance and promote the interests of the United Arab Emirates in this country, in flagrant violation of their obligation to notify the Attorney General of their activities and in derogation of the American people’s right to know when a foreign government seeks to influence the policies of our government and our public opinion,” stated Acting United States Attorney Kasulis. “These arrests serve as a warning to those who act at the direction of foreign governments without disclosing their actions, as well as those who seek to mislead investigators about their actions, that they will be brought to justice and face the consequences.”
Ms. Kasulis expressed her appreciation to the United States Attorney’s Office for the Central District of California, the United States Attorney’s Office for the District of Colorado and the FBI’s Los Angeles and Denver Field Offices for their assistance.
“The defendants repeatedly capitalized on Barrack’s friendships and access to a candidate who was eventually elected President, high-ranking campaign and government officials, and the American media to advance the policy goals of a foreign government without disclosing their true allegiances,” stated Acting Assistant Attorney General Lesko. “The conduct alleged in the indictment is nothing short of a betrayal of those officials in the United States, including the former President. Through this indictment, we are putting everyone—regardless of their wealth or perceived political power—on notice that the Department of Justice will enforce the prohibition of this sort of undisclosed foreign influence.”
“American citizens have a right to know when foreign governments, or their agents, are attempting to exert influence on our government. This is especially important to Americans during a Presidential election year, and the laws on the books were created to protect our nation from such untoward influence. This case is about secret attempts to influence our highest officials, and when that corrupt behavior was discovered, we allege Mr. Barrack went even further, obstructing and lying to FBI special agents. In case it needs repeating, each of those bad choices is a federal felony, and each now comes with significant consequences - the first being today's indictment,” stated FBI Assistant Director-in-Charge Sweeney.
Between April 2016 and November 2016, Barrack served as an informal advisor to the Campaign of the Candidate in the 2016 United States Presidential Election. Between November 2016 and January 2017, Barrack served as Chairman of the Presidential Inaugural Committee. Beginning in January 2017, Barrack informally advised senior United States government officials on issues related to United States foreign policy in the Middle East. Barrack also sought appointment to a senior role in the United States government, including the role of Special Envoy to the Middle East. Barrack served as the Executive Chairman of a global investment management firm headquartered in Los Angeles, and Grimes was employed at the firm and reported directly to Barrack. During the relevant time period, Alshahhi worked as an agent of the UAE and was in frequent contact with Barrack and Grimes, including numerous in-person meetings in the United States and the UAE.
As alleged in the indictment, the defendants used Barrack’s status as a senior outside advisor to the Campaign and, subsequently, to senior United States government officials, to advance the interests of and provide intelligence to the UAE while simultaneously failing to notify the Attorney General that their actions were taken at the direction of senior UAE officials. Barrack – directly and through Alshahhi and Grimes – was regularly and repeatedly in contact with the senior leadership of the UAE government. On multiple occasions, Barrack referred to Alshahhi as the UAE’s “secret weapon” to advance its foreign policy agenda in the United States.
Barrack, Alshahhi and Grimes allegedly took numerous steps in the United States to advance the interests of the UAE. For example, in May 2016, Barrack inserted language praising the UAE into a Campaign speech to be delivered by the Candidate about United States energy policy in May 2016 and emailed an advance draft of the speech to Alshahhi for delivery to senior UAE officials. Similarly, throughout 2016 and 2017, the defendants sought and received direction and feedback, including talking points, from senior UAE officials in connection with national press appearances Barrack used to promote the interests of the UAE. After one appearance in which Barrack repeatedly praised the United Arab Emirates, Barrack emailed Alshahhi, “I nailed it. . . for the home team,” referring to the UAE. Barrack and Grimes also solicited direction from senior UAE officials in advance of the publication of an Op-Ed authored by Barrack and published in a national magazine in October 2016 and removed certain language at the direction of senior UAE officials, as relayed by Alshahhi.
Following the 2016 United States Presidential Election, the defendants repeatedly acted at the direction of UAE officials to influence the foreign policy positions of the incoming administration in favor of UAE interests. For example, in December 2016, Barrack met with Grimes, Alshahhi and senior UAE government officials, during which he advised them to create a “wish list” of U.S. foreign policy items that the UAE wanted accomplished in the first 100 days, six months, year and four years of the incoming administration of the United States President-Elect.
In March 2017, Barrack and his co-defendants agreed to promote the candidacy of an individual favored by senior UAE officials for the position of United States Ambassador to the UAE. In May 2017, Barrack agreed to provide Alshahhi with non-public information about the views and reactions of senior United States government officials following a White House meeting between senior United States officials and senior UAE officials.
In September 2017, Alshahhi communicated with Barrack about the opposition of the UAE to a proposed summit at Camp David to address an ongoing dispute between the State of Qatar, the UAE and other Middle Eastern governments, after which Barrack sought to advise the President of the United States against holding the Camp David summit. The summit never happened.
In furtherance of the alleged criminal conspiracy and conduct, Barrack and Grimes, with the assistance of Alshahhi, acquired a dedicated cellular telephone and installed a secure messaging application to facilitate Barrack’s communications with senior UAE officials.
Neither Alshahhi, nor Barrack nor Grimes provided the required notification to the United States Attorney General that they were acting in the United States as agents of a foreign government.
On June 20, 2019, Barrack voluntarily met with FBI special agents. During the interview, Barrack allegedly made numerous false statements, including falsely denying that Alshahhi had ever requested that he take any actions on behalf of the UAE.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Nathan Reilly, Ryan Harris, Samuel Nitze and Hiral Mehta of the Eastern District of New York and Trial Attorney Matthew McKenzie from the Justice Department’s Counterintelligence and Export Control Section are in charge of the prosecution.
The Defendants:
RASHID SULTAN RASHID AL MALIK ALSHAHHI (also known as “Rashid Al Malik” and “Rashid Al‑Malik”)
Age: 43
United Arab EmiratesTHOMAS JOSEPH BARRACK
Age: 74
Santa Monica, CaliforniaMATTHEW GRIMES
Age: 27
Aspen, ColoradoE.D.N.Y. Docket No. 21-CR-371 (BMC)
Former Advisor to Presidential Candidate Among Three Defendants Charged with Acting as Agents of a Foreign GovernmentRead the Press Release
A seven-count indictment was unsealed today in a New York federal court relating to the defendants’ unlawful efforts to advance the interests of the United Arab Emirates (UAE) in the United States at the direction of senior UAE officials by influencing the foreign policy positions of the campaign of a candidate in the 2016 U.S. presidential election and, subsequently, the foreign policy positions of the U.S. government in the incoming administration, as well as seeking to influence public opinion in favor of UAE interests.
Thomas Joseph Barrack, 74, of Santa Monica, California; Matthew Grimes, 27, of Aspen, Colorado; and Rashid Sultan Rashid Al Malik Alshahhi, aka Rashid Al Malik and Rashid Al‑Malik, 43, a UAE national, are accused of acting and conspiring to act as agents of the UAE between April 2016 and April 2018. The indictment also charges Barrack with obstruction of justice and making multiple false statements during a June 20, 2019, interview with federal law enforcement agents.
“The defendants repeatedly capitalized on Barrack’s friendships and access to a candidate who was eventually elected President, high-ranking campaign and government officials, and the American media to advance the policy goals of a foreign government without disclosing their true allegiances,” said Acting Assistant Attorney General Mark Lesko of the Justice Department’s National Security Division. “The conduct alleged in the indictment is nothing short of a betrayal of those officials in the United States, including the former President. Through this indictment, we are putting everyone — regardless of their wealth or perceived political power — on notice that the Department of Justice will enforce the prohibition of this sort of undisclosed foreign influence.”
“As alleged, the defendants, using their positions of power and influence in a presidential election year, engaged in a conspiracy to illegally advance and promote the interests of the United Arab Emirates in this country, in flagrant violation of their obligation to notify the Attorney General of their activities and in derogation of the American people’s right to know when a foreign government seeks to influence the policies of our government and our public opinion,” said Acting U.S. Attorney Jacquelin M. Kasulis for the Eastern District of New York. “These arrests serve as a warning to those who act at the direction of foreign governments without disclosing their actions, as well as those who seek to mislead investigators about their actions, that they will be brought to justice and face the consequences.”
“Today’s indictment confirms the FBI’s unwavering commitment to rooting out those individuals who think they can manipulate the system to the detriment of the United States and the American people,” said Assistant Director Calvin Shivers of the FBI's Criminal Investigative Division. "Barrack is alleged to have abused his access to government officials to illegally advance the interests of foreign governments. The FBI stands in concert with our external partners to ensure all who seek to wield illegal influence are charged for their crimes.”
“American citizens have a right to know when foreign governments, or their agents, are attempting to exert influence on our government,” said Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office. “This is especially important to Americans during a presidential election year, and the laws on the books were created to protect our nation from such untoward influence. This case is about secret attempts to influence our highest officials, and when that corrupt behavior was discovered, we allege Mr. Barrack went even further, obstructing and lying to FBI special agents. In case it needs repeating, each of those bad choices is a federal felony, and each now comes with significant consequences – the first being today’s indictment.”
According to court documents, between April and November 2016, Barrack served as an informal advisor to the campaign of the candidate in the 2016 U.S. presidential election. Between November 2016 and January 2017, Barrack served as Chairman of the Presidential Inaugural Committee. Beginning in January 2017, Barrack informally advised senior U.S. government officials on issues related to U.S. foreign policy in the Middle East. Barrack also sought appointment to a senior role in the U.S. government, including the role of Special Envoy to the Middle East. Barrack served as the Executive Chairman of a global investment management firm headquartered in Los Angeles, and Grimes was employed at the firm and reported directly to Barrack. During the relevant time period, Alshahhi worked as an agent of the UAE and was in frequent contact with Barrack and Grimes, including numerous in-person meetings in the United States and the UAE.
As alleged in the indictment, the defendants used Barrack’s status as a senior outside advisor to the campaign and, subsequently, to senior U.S. government officials, to advance the interests of and provide intelligence to the UAE while simultaneously failing to notify the Attorney General that their actions were taken at the direction of senior UAE officials. Barrack – directly and through Alshahhi and Grimes – was regularly and repeatedly in contact with the senior leadership of the UAE government. On multiple occasions, Barrack referred to Alshahhi as the UAE’s “secret weapon” to advance its foreign policy agenda in the United States.
Barrack, Alshahhi and Grimes allegedly took numerous steps in the United States to advance the interests of the UAE. For example, in May 2016, Barrack inserted language praising the UAE into a campaign speech to be delivered by the candidate about U.S. energy policy in May 2016 and emailed an advance draft of the speech to Alshahhi for delivery to senior UAE officials. Similarly, throughout 2016 and 2017, the defendants sought and received direction and feedback, including talking points, from senior UAE officials in connection with national press appearances Barrack used to promote the interests of the UAE. After one appearance in which Barrack repeatedly praised the UAE, Barrack emailed Alshahhi, “I nailed it. . . for the home team,” referring to the UAE. Barrack and Grimes also solicited direction from senior UAE officials in advance of the publication of an op-ed authored by Barrack and published in a national magazine in October 2016 and removed certain language at the direction of senior UAE officials, as relayed by Alshahhi.
Following the 2016 U.S. presidential election, the defendants repeatedly acted at the direction of UAE officials to influence the foreign policy positions of the incoming administration in favor of UAE interests. For example, in December 2016, Barrack attended a meeting with Grimes, Alshahhi and senior UAE government officials, during which he advised them to create a “wish list” of U.S. foreign policy items that the UAE wanted accomplished in the first 100 days, six months, year and four years of the incoming administration of the U.S. President-elect.
In March 2017, Barrack and his co-defendants agreed to promote the candidacy of an individual favored by senior UAE officials for the position of U.S. Ambassador to the UAE. In May 2017, Barrack agreed to provide Alshahhi with non-public information about the views and reactions of senior U.S. government officials following a White House meeting between senior U.S. officials and senior UAE officials.
In September 2017, Alshahhi communicated with Barrack about the opposition of the UAE to a proposed summit at Camp David to address an ongoing dispute between the State of Qatar, the UAE and other Middle Eastern governments, after which Barrack sought to advise the President of the United States against holding the Camp David summit. The summit never happened.
In furtherance of the alleged criminal conspiracy and conduct, Barrack and Grimes, with the assistance of Alshahhi, acquired a dedicated cellular telephone and installed a secure messaging application to facilitate Barrack’s communications with senior UAE officials.
Neither Alshahhi nor Barrack nor Grimes provided the required notification to the U.S. Attorney General that they were acting in the United States as agents of a foreign government.
On June 20, 2019, Barrack voluntarily met with FBI special agents. During the interview, Barrack allegedly made numerous false statements, including falsely denying that Alshahhi had ever requested that he take any actions on behalf of the UAE.
Barrack and Grimes were arrested this morning and are scheduled to be arraigned this afternoon in the Central District of California. Alshahhi remains at large.
Assistant U.S. Attorneys Nathan Reilly, Ryan Harris, Samuel Nitze and Hiral Mehta of the Eastern District of New York and Trial Attorney Matthew McKenzie of the National Security Division’s Counterintelligence and Export Control are prosecuting the case.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
Final defendant pleads guilty in meth conspiracy punishable by 10 years up to life in prisonRead the Press Release
COLUMBUS, Ohio – The final of six defendants in a Columbus-to-West Virginia methamphetamine ring pleaded guilty in U.S. District Court today to a drug conspiracy crime punishable by 10 years up to life in prison.
Marvin C. Bozeman, II, 31, of Las Vegas, served as the group’s methamphetamine supplier.
According to court documents, in spring 2019, Columbus Division of Police officers received information from law enforcement in West Virginia that large amounts of methamphetamine were being transported from Columbus to be distributed in West Virginia.
Further investigation revealed the defendants were distributing large quantities of the drug and using various residences in Central Ohio to store and distribute the methamphetamine. Drug premises included residences on Rumsey Road, Lock Avenue and Esther Drive, among others.
Co-conspirators charged in this case include: Joseph Brian Howard, Timothy D. Copley, Samantha Howard, Darin T. Copeland and Charlee Ann Blankenship. They have each pleaded guilty and await sentencing.
Bozeman admitted to supplying Howard with packages containing pounds of methamphetamine from Las Vegas. Portions of the drugs were then redistributed amongst co-conspirators and throughout the region. Bozeman used the United States Postal Service to send nine-to-10-pound packages of methamphetamine in the mail. The local drug traffickers paid him approximately $1,000 per pound.
The narcotics conspiracy as charged in this case is punishable by at least 10 years and up to life in prison. Congress sets the minimum and maximum statutory sentence. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Columbus Police Chief Elaine Bryant announced the plea entered into today before U.S. District Judge Edmund A. Sargus, Jr. Assistant United States Attorneys Kevin W. Kelley and Elizabeth Geraghty are representing the United States in this case.
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Fifth defendant related to gun store burglary admits possessing stolen firearmRead the Press Release
SAVANNAH, GA: All defendants linked to a 2020 Bryan County gun store burglary have now admitted to related charges with the guilty plea of a Pembroke, Ga., felon.
Adam Webster, 38, of Pembroke, Ga., pled guilty in U.S. District Court to Possession of a Stolen Firearm, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. The plea subjects Webster to a statutory penalty of up to 10 years in prison, along with substantial fines and three years of supervised release following completion of any prison term. There is no parole in the federal system.
“The investigation of the April 2020 burglary of Cleve’s Gun Shop demonstrates how quickly illegal firearms can spread once introduced into the community,” said Acting U.S. Attorney Estes. “Our law enforcement partners made exemplary progress in tracking down those responsible for this burglary and recovering these stolen weapons before they could be used in further crimes.”
The investigation began when Cleve’s Gun Shop in Ellabell, Ga., was burglarized in the early morning hours of April 22, 2020. Approximately 18 firearms, a .50 caliber muzzleloader, and various rounds of ammunition were stolen during the burglary. Agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Georgia Bureau of Investigation (GBI), and the Georgia Department of Community Supervision (DCS), along with the Bryan County Sheriff’s Office, worked to recover four of the guns during the investigation. On June 18, 2020, law enforcement conducted a search of Webster’s residence and found a revolver stolen during the burglary. Webster at the time was on parole after conviction on a state felony charge.
Other defendants who have pled guilty to their role in the burglary or possessing firearms related to those stolen during the burglary are:
- Johnny Cason, 40, of Ellabell, Ga., awaits sentencing after pleading guilty to an Information charging him with Conspiracy for helping to plan and provide materials used in the burglary. He faces a statutory penalty of up to five years in prison.
- Michael Ernest Warnell, 39, of Ellabell, Ga., faces a statutory penalty of up to 10 years in prison after pleading guilty to Possession of a Firearm by a Convicted Felon.
- Colby Ray Southerland, 24, of Ellabell, Ga., faces a statutory penalty of up to 10 years in prison after pleading guilty to Possession of a Firearm by an Unlawful User of Controlled Substances.
- Brandon Beasley, 23, of Ellabell, Ga., faces a statutory penalty of up to five years in prison after pleading guilty to Possession of a Firearm with an Altered and Obliterated Serial Number.
“Among ATF’s top priorities is ensuring that those who are responsible for committing gun store burglaries are aggressively investigated and swiftly brought to justice,” said Beau Kolodka, Assistant Special Agent in Charge of the Atlanta Field Division of the ATF. “This is an excellent example of such an investigation that was worked cooperatively by multiple partner agencies with outstanding results.”
The case was investigated by the ATF; GBI; DCS; and the Bryan County Sheriff’s Office; with assistance from the U.S. Marshals Service, and prosecuted for the United States by the U.S. Attorney’s Office for the Southern District of Georgia.
Those with information concerning the whereabouts of firearms stolen in the burglary should contact the ATF at (912) 650-6550.
Eastern Panhandle man admits to firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Ronald Louis Browning, of Kearneysville, West Virginia, has admitted to a firearms charge, Acting United States Attorney Randolph J. Bernard announced.
Browning, 33, pleaded guilty to one count of “False Statement During Purchase of Firearm.” Browning admitted to making a false statement to purchase a 9mm pistol in December 2020 in Berkeley County.
Browning faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Dubuque Methamphetamine Dealer Sentenced to Federal PrisonRead the Press Release
A man who distributed methamphetamine in the Dubuque, Iowa, area was sentenced on July 14, 2021, to more than 15 years in federal prison.
Larry Osa Scott, age 44, from Dubuque, Iowa, received the prison term after a January 6, 2021 guilty plea to two counts of distribution of a controlled substance near a protected location and two counts of possession with intent to distribute a controlled substance.
Evidence at sentencing showed that Scott began selling methamphetamine in June 2015. Between June 2015 and January 2016, Scott obtained over 1,000 grams of methamphetamine. On January 6, 2016, and October 25, 2019, Scott sold methamphetamine to another person within 1,000 feet of a park in Dubuque. On October 29, November 4, and November 21, 2019, Scott sold methamphetamine to an undercover officer. On November 30, 2019, law enforcement was watching Scott’s home because Scott had a warrant for his arrest. After officers saw Scott arrived home, they approached Scott, who slammed the driver’s door of his truck shut and appeared as if he was going to flee. Officers eventually took Scott into custody and recovered $740 in cash from his person and close to 14 grams of methamphetamine from his truck.
Scott was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Scott was sentenced to 188 months’ imprisonment. He must also serve a 6-year term of supervised release after the prison term. There is no parole in the federal system.
Scott is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Dillan Edwards and investigated by the Dubuque Drug Task Force.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-01007.
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Convicted Sex Offender Sentenced to 20 Years in Federal Prison for Distributing Child Sexual Abuse VideoRead the Press Release
Orlando, FL – U.S. District Judge Carlos E. Mendoza has sentenced Jeffery Stephen Heck, Jr. (28, Titusville) to 20 years in federal prison for distributing child sexual abuse material. Heck was also ordered to serve a 10-year term of supervised release, register as a sex offender, and forfeit his smartphone.
Heck had pleaded guilty on April 21, 2021.
According to court documents, a law enforcement officer acting in an undercover capacity on a popular social media application (app) identified Heck as a member of a group on this app, which group is dedicated to the sharing of child sexual abuse material. On January 22, 2020, Heck distributed and posted a video depicting the sexual abuse of a child to that same group on the app.
On July 13, 2020, law enforcement executed a search warrant at Heck’s residence in South Carolina, where he had since relocated. Law enforcement seized his cellphone which contained approximately 116 images and one video depicting children being sexually abused. Additionally, law enforcement discovered a text message thread on his phone in which Heck had solicited nude photos from, and sent a nude photo to, an individual that Heck believed to be 15 years old.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Jennifer M. Harrington.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Columbus County Man Receives 5 Years for Gun OffenseRead the Press Release
WILMINGTON, N.C. – A Chadbourn man was sentenced today to 60 months in prison and 3 years of supervised release for possessing a firearm in furtherance of a drug trafficking offense. On April 22, 2021, Paul Freeman pled guilty to the charge.
According to court documents and other information presented in court, Freeman, 39, possessed a 9mm handgun in connection with his sale of crack and cocaine. In the Spring of 2020, law enforcement received complaints that Freeman was selling drugs from his residence in Chadbourn. Freeman was previously convicted of multiple drug offenses and also had pending state charges related to drug trafficking offenses from 2017 and 2018. In March 2020, law enforcement conducted a controlled purchase from Freeman at his residence and obtained a search warrant which was executed on March 11, 2020. The search recovered paraphernalia, digital scales, quantities of crack and cocaine, as well as a 9mm handgun together in a closet of Freeman’s residence.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Columbus County Sheriff’s Office investigated the case and Assistant U.S. Attorney Bryan Stephany prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The United States Attorney’s Office for the Eastern District of North Carolina implements the PSN Program through its Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:20-CR-00097-M.
Colorado CEO and Fund Manager Arrested for $10 Million Securities Fraud SchemeRead the Press Release
NEWARK, N.J. – A Denver, Colorado, CEO was arrested today in connection with a scheme to fraudulently obtain approximately $10 million from investors through various misrepresentations about fund operations and his background and contribution to the fund, Acting U.S. Attorney Rachael A. Honig announced.
Samuel J. Mancini, 55, is charged by complaint with securities fraud, wire fraud, and money laundering. He appeared this afternoon before U.S. Magistrate Judge Kristin L. Mix in Denver federal court, and was released on $100,000 unsecured bond pending his initial appearance in the District of New Jersey.
According to documents filed in this case and statements made in court:
From at least February 2020 through July 2021, Mancini orchestrated an investment fraud scheme and fraudulently obtained more than approximately $10 million from victims. Mancini managed and controlled Outdoor Capital Partners LLC (OCP), which he purported to be a venture capital and private equity firm. OCP served as the managing director of OCP Italia Fund LLC (OCP Italia), a private investment fund.
Mancini promised investors that he was raising $20 million, including $5 million of his own money, for OCP Italia to invest solely in acquiring controlling interests in three Italian cycling companies. Mancini represented to investors that the acquisitions would take place soon after the fund closed and promised investors approximately 70 percent of OCP Italia’s operating profits.
Mancini repeatedly misrepresented his finances and his contribution to OCP Italia. Mancini also misrepresented OCP Italia’s ability to close on the acquisitions. To date, OCP Italia has not acquired any of the Italian cycling companies. Instead, Mancini defaulted on contracts, diverted investor funds out of OCP Italia, and, in certain instances, paid investor funds to other investors seeking redemption.
Mancini also misled investors about his educational background by representing himself as a graduate of a prestigious military academy when, in fact, Mancini had failed to graduate from the academy due to an ethical violation, a fact he failed to disclose to investors.
When confronted with requests for transparency and redemptions by certain investors in OCP Italia, Mancini failed to honor the redemption requests, made misrepresentations about his inability to honor the redemption requests, misstated and omitted material facts, and provided certain investors with forged, modified, or otherwise fraudulent documentation.
The securities fraud count carries a maximum penalty of 20 years in prison and a $5 million fine. The count of wire fraud is punishable by a maximum penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. The count of money laundering is punishable by a maximum penalty of 10 years imprisonment and $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest.
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. She also thanked the FBI Denver Field Office, under the direction of Special Agent in Charge Michael H. Schneider, for its assistance.
Additional victims of Mancini’s conduct may reach out to the FBI at 1-800-CALL-FBI (225-5324) or visit www.fbi.gov.
The government is represented by Assistant U.S. Attorney Lauren E. Repole of the Economic Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
Cedar Rapids Man Pleads Guilty to Being a Felon in Possession of a FirearmRead the Press Release
A felon who possessed a firearm pled guilty on July 19, 2021, in federal court in Cedar Rapids.
Leon Sheley, age 23, from Cedar Rapids, Iowa, was convicted of one count of being a felon in possession of a firearm. At the plea hearing, Sheley admitted that, on May 20, 2020, he knowingly possessed a pistol after having been convicted of three crimes punishable by more than one year of imprisonment. Sheley admitted he had prior convictions for theft in the second degree in 2016, theft in the first degree in 2016, and escape from custody in 2017.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Sheley remains in custody of the United States Marshal pending sentencing. Sheley faces a possible maximum sentence of ten years’ imprisonment, a $250,000 fine, and three years of supervised release following any imprisonment.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Cedar Rapids Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 21-17.
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Canadian Man Pleads Guilty for His Role in International Marijuana ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Ranjodh Singh, 22, of Canada, pleaded guilty before Senior U.S. District Judge William M. Skretny to conspiring to possess with intent to distribute, and distributing, 100 kilograms or more of marijuana. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Misha A. Coulson, who is handling the case, stated that the defendant conspired with others, with others, including Amanpreet Gill, to distribute marijuana. In December 2020, Singh’s co-conspirators purchased and arranged for a shipment of marijuana from Canada to be delivered to Smartway Associates in Somerset, NJ. Unbeknownst to the defendant and his co-conspirators, on December 1, 2020, the shipment was intercepted by Customs and Border Protection (CBP) at the Peace Bridge Cargo Facility and was searched. Contained within the shipment was a large quantity of marijuana packaged in vacuum sealed bags.
Subsequently, investigators conducted a controlled delivery operation. A silver vehicle, driven by Singh, was observed following the shipment of marijuana and was observed at the two warehouses where the shipment was temporarily stored. After the shipment of marijuana reached its final destination and law enforcement secured the warehouse, the defendant arrived at the warehouse. Investigators seized a cell phone from the defendant which contained videos showing him identifying law enforcement personnel while he was driving around the warehouses.
Charges remain pending against defendant Gill. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by Homeland Security investigations, under the direction of Special Agent-in-Charge Kevin Kelly; Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy; the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard; the Niagara County Sheriff’s Office, under the direction of Sheriff Michael J. Filicetti; and the North Tonawanda Police Department, under the direction of Chief Thomas E. Krantz.
Sentencing will be scheduled at a later date.
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Butte man admits armed robberies of three businessesRead the Press Release
MISSOULA – A Butte man accused of robbing three business at gun point in three different Montana cities in February admitted charges today, Acting U.S. Attorney Leif M. Johnson said.
Thomas Scott Cockrill, 49, pleaded guilty to three counts of robbery affecting commerce and to brandishing a firearm in furtherance of a crime of violence. Cockrill faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release on the robbery crime and a mandatory minimum seven years to life in prison, consecutive to any other sentence, a $250,000 fine and five years of supervised release on the firearm crime.
U.S. Magistrate Judge Kathleen L. DeSoto presided. Sentencing was set for Nov. 10 before U.S. District Judge Dana L. Christensen. Cockrill was detained pending further proceedings.
The government alleged in court documents that on Feb. 9, Cockrill robbed Blackjack Pizza in Missoula and brandished a handgun at an employee. Later that same evening, Cockrill held up at gun point an employee of the La Quinta Inn in Helena. Four days later, on Feb. 13, Cockrill robbed the Elevated Dispensary in Butte and brandished a handgun at an employee. Each business lost several hundred dollars in the robberies. When interviewed by law enforcement, Cockrill admitted he owned three firearms and that he robbed the three businesses.
Assistant U.S. Attorney Tara J. Elliott is prosecuting the case, which was investigated by the FBI’s Montana Regional Violent Crime Task Force, Helena Police Department, Missoula Police Department, Butte Silverbow Law Enforcement and Montana Probation and Parole.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Buncombe Co. Man Pleads Guilty to Receiving Nearly $1 Million in Veteran Benefits Based on Fraudulent Service-Connected DisabilitiesRead the Press Release
ASHEVILLE, N.C. – Acting U.S. Attorney William T. Stetzer announced that John Paul Cook, 57, of Alexander, N.C. appeared before U.S. Magistrate Judge W. Carleton Metcalf on Monday, July 19, 2021, and pleaded guilty to defrauding the U.S. Department of Veterans Affairs (the VA) by receiving nearly $1 million in veteran benefits based on fraudulent claims of service-connected disabilities.
Kim Lampkins, Special Agent in Charge of the Mid-Atlantic Field Office, Washington, D.C., of the U.S. Department of Veterans Affairs, Office of Inspector General (VA-OIG), joins Acting U.S. Attorney Stetzer in making today’s announcement.
According to the criminal indictment, filed plea documents and admissions made in court, Cook enlisted in the United States Army (the Army) in November 1985. Court documents show that six months later Cook sustained an accidental injury while on duty. Following the incident, Cook complained that as a result of the accident and injuries he sustained, a preexisting eye condition had worsened. In 1987, following a medical evaluation, Cook was discharged, placed on the retired list, and began receiving VA disability-based compensation at a rate of 60%. Over the next 30 years, Cook’s disability-based compensation increased, following Cook’s repeated false claims of increased visual impairment and unemployability due to “severe visual deficit.” As Cook admitted in court, in 2005, based on his claims of severe visual impairment, the VA declared Cook legally blind and he began receiving disability-based compensation at the maximum rate. Cook also began to receive additional benefits, including Special Monthly Compensation (an extra monetary allowance paid to a qualifying veteran due to the severity of his disability), Specially Adapted Housing (a grant that goes toward paying for adaptations in a new home), and Special Housing Adaptation (a grant that goes toward remodeling an existing home).
According to court records, Cook’s monthly VA disability payments in 1987 were $1,411 per month. With the incremental increases in his disability rating, as well as cost-of-living adjustments and his Special Monthly Compensation, these payments steadily increased over the years. By 2016, the monthly payment had risen to $3,990. In total, from 1987 through 2017, Cook received approximately $978,138 in VA disability payments due to his claimed blindness, to which he was not lawfully entitled.
According to admissions reflected in plea documents, contrary to Cook’s filed claims with the VA for additional disability claims and his complaints of increased visual impairment, Cook repeatedly passed vision screening tests to renew or obtain a driver’s license in North and South Carolina. Furthermore, during the relevant time period, court documents show that Cook purchased and registered over 30 different motor vehicles which Cook routinely drove, including on long-distance trips and to perform errands. Court records further show that, from 2010 to 2016, during a time period that Cook was receiving maximum VA disability benefits for his visual impairment, Cook was actively involved with the Boy Scouts of America (BSA), including serving as a Den Leader and a Cubmaster. Among the courses the defendant completed with the BSA were courses qualifying him to be a range officer for BB guns and for archery. He was also certified for land navigation, which involves reading maps and using a compass.
The charge of stealing from the VA carries a maximum penalty of 10 years in prison and a $250,000 fine. A sentencing date for Cook has not been set.
In making today’s announcement Acting U.S. Attorney Stetzer thanked the VA-OIG for their investigation of the case.
Assistant U.S. Attorney Richard Edwards of the U.S. Attorney’s Office in Asheville is in charge of the prosecution.
Brooklyn Park Man Pleads Guilty to Conspiracy to Commit Arson in St. Paul’s Midway AreaRead the Press Release
ST. PAUL, Minn. – A Brooklyn Park man pleaded guilty today to conspiracy to commit arson of the Great Health and Nutrition store in St. Paul, announced Acting United States Attorney W. Anders Folk.
According to court documents, on May 28, 2020, Samuel Elliot Frey, 20, and his co-conspirators, including co-defendant McKenzy Ann DeGidio Dunn, 20, and Conspirator 1 (who was 17 years old at the time of the arson), joined other individuals who had gathered near the Great Health and Nutrition store located at 1360 University Avenue West, in St. Paul. Frey and his co-conspirators arrived together to the Midway area near University Avenue and walked through multiple businesses before they arrived inside the Great Health and Nutrition retail store. While inside the store, Frey took a bottle of hand sanitizer and poured the contents onto a downed shelving unit located on the floor. Frey then lit paper on fire and placed the flaming paper where he had poured the contents of a hand sanitizer bottle. Frey applied additional hand sanitizer in an attempt to accelerate the fire. The Great Health and Nutrition store sustained fire damage as a result of Frey’s conduct.
According to court documents, after May 28, 2020, Frey spoke with co-defendant Dunn and with Conspirator 1 each on at least one occasion. In Frey’s respective discussions with his co-conspirators, Frey instructed them to be untruthful to law enforcement by falsely reporting that another person had supposedly started the fire at the Great Health and Nutrition store. At the time of Frey’s instructions to his co-conspirators, Frey knew this was a lie.
On October 26, 2020, co-conspirator Dunn pleaded guilty to one count of conspiracy to commit arson. On May 10, 2021, United States District Judge Nancy E. Brasel sentenced Dunn to three years of probation and $31,578 in restitution. Frey’s sentencing hearing will be scheduled for a later date.
This case is the result of an investigation conducted jointly by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the St. Paul Police Department, the St. Paul Fire Department, Brooklyn Park Police Department, the Minnesota State Fire Marshal Division, and the FBI.
This case is being prosecuted by Assistant U.S. Attorneys Matthew S. Ebert and Joseph S. Teirab.
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Birmingham Man Pleads Guilty to CarjackingRead the Press Release
BIRMINGHAM, Ala. – A Birmingham man pleaded guilty today to an armed carjacking, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Mickey French.
Tadarrius Lawaun Smith, 23, pleaded guilty to carjacking and carrying and brandishing a firearm during and in relation to a violent crime. He entered his plea pursuant to a binding Plea Agreement with the government, in which the parties jointly recommended a sentence to include 189 months in prison. Sentencing is scheduled for-October 26, 2021, before U.S. District Judge Annemarie Carney Axon.
According to the plea agreement, on December 4, 2019, Smith carjacked the victim as she was exiting her car in the parking lot of an apartment complex in the Southside area of Birmingham. Smith put a pistol with an extended magazine to her head and made her get back in the car. Smith drove the car to an unknown location and held a pistol to her head and told her that he was going to kill her, he then assaulted her and demanded money. Smith drove her to three different ATMs withdrawing $860 and took her Mastercard because it had a high credit limit. Smith then drove to the 900 block of 1st Avenue South and got out of the car and walked away. The victim drove several blocks down the street, parked, and called her daughter, who called police. Birmingham PD investigators pulled video from the bank and gas station where Smith stopped during the incident. Birmingham Police officers arrested Smith when he arrived at the Jefferson County Courthouse for a probation hearing.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case, along with the Birmingham Police Department. Assistant U.S. Attorneys Alan Baty and Darius Greene are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.