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Thursday 15 July 2021
Multi-State, Multi-Agency Investigation Results in Four Federally Charged in Child Sex Trafficking and Child Exploitation CaseRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that four individuals have been charged by a federal grand jury in a 13-count indictment for their respective roles in alleged child sex trafficking, production of child pornography, and coercion and enticement of a minor. The case involves activity spanning from Arizona to South Carolina, and victims from the Pee Dee and Midlands regions of South Carolina.
Specifically, Hart William Grow, 25, of Surprise, Arizona, has been charged with conspiracy to sexually traffic a minor, sexual trafficking of minor, conspiracy to produce child pornography and to coerce and entice a minor, four counts of production of child pornography involving two victims, four counts of coercion and enticement of a minor involving two victims, and possession of child pornography.
Theodore Woolings Bye, III, 36, of Myrtle Beach, has been charged with conspiracy to sexually traffic a minor, sexual trafficking of minor, conspiracy to produce child pornography and to coerce and entice a minor, two counts of production of child pornography, two counts of coercion and enticement of a minor, and possession of child pornography.
Sanadin Mohamed Elrayes, 28, of Surfside Beach, and Charles Joseph Spillane, 44, of Myrtle Beach, have both been charged with conspiracy to produce child pornography and to coerce and entice a minor.
The indictment alleges that, since at least April 2020, Grow and Bye conspired to recruit, entice, harbor, transport, provide, obtain, maintain, patronize, and solicit a minor victim in South Carolina to engage in a commercial sex act.
The record in the case alleges that Grow, from his home in Arizona and through the internet, misrepresented to various minors across the country that he was also a minor and was interested in a relationship. In this case, Grow allegedly claimed to a minor victim that he was a 17-year-old female named “Hannah” living in Columbia, South Carolina.
Using this false persona and promising love and affection, Grow groomed the minor victim to fall in love with “Hannah.” It was then, the indictment alleges, that Grow abused his position of trust with the minor victim to enter into a sexual dominant/submissive relationship, to hold absolute power and control over the victim, and to employ bondage/discipline, domination/submission, and sadism/masochism (“BDSM”) techniques. Threatening the minor victim if the victim did not obey his BDSM rules, Grow required the victim to engage in often-violent sexual acts with adult men that the victim did not otherwise wish to engage with.
According to Court records, Grow used message boards and social media to make his minor victim available to adult males for sexual encounters in exchange for the men sending visual depictions of the sexual encounters to him. Specifically, Grow required the adult males to produce, or assist in the production of, a visual depiction of the often-violent sexual acts. One such male, according to the indictment, was Bye.
The indictment alleges that Bye, with the direction and logistical assistance of Grow, not only participated in the sexual acts with the victim but also made the victim available for sex on numerous occasions to other men. According to the indictment, Bye would transport the victim to various locations in and around Myrtle Beach for commercial sex acts and would use internet message boards, social media, and text messages to make the victim available to other adult males for sexual encounters. The minor victim’s availability for the sexual encounters was predicated on the agreement with the adult males to produce and send visual depictions of the acts to Grow.
The indictment further alleges that Elrayes and Spillane responded to Bye’s internet postings and, after communicating with Bye via social media and text messages, engaged in sexually explicit conduct with the minor for the purpose of producing a visual depiction of the acts. According to the indictment, the visual depictions with Elrayes were created at a hotel in Surfside Beach, and the visual depictions with Spillane were created at his Myrtle Beach home.
The indictment also alleges that in early 2021, after Grow had trafficked the first minor victim, he began communicating with a second minor victim in South Carolina. According to Court records, Grow coerced the second minor into producing visual depictions of sexually explicit conduct until shortly before his arrest in Arizona.
According to Court records, the defendants used social media applications, including Snapchat, Wattpad, and Kik to communicate with the victims and with each other. Grow used screen names, including “hgliese” and “hanners,” and aliases, including “Terry” and “Hannah,” when allegedly communicating with his victims.
Grow and Bye face a maximum penalty of life, and Elrayes and Spillane face a maximum penalty of five years. All defendants are currently detained.
“While this indictment speaks for itself, human trafficking and child exploitation are vile crimes, and this office will swiftly and aggressively prosecute those who prey upon minors,” said Acting U.S. Attorney DeHart. “Our ability to address these cases hinges on the great work of our federal, state, and local partners. We also ask parents to be vigilant and to pay attention to your children’s online and social media activity. No demographic is immune from this type of crime, and no family with a computer or a phone is out of reach from these types of predators.”
“The victimization and exploitation of children is a major threat to our community and something we must all work to eradicate,” said Special Agent in Charge Special Agent in Charge Ronnie Martinez, who oversees Homeland Security Investigations (HSI) operations in North Carolina and South Carolina. “HSI is committed to identifying and safeguarding victims of human trafficking and child exploitation and will aggressively pursue offenders and ensure justice is served.”
“Human trafficking and child exploitation is real, and it is happening in South Carolina,” said South Carolina State Law Enforcement Division (SLED) Chief Mark Keel. “We have and will continue to work in collaboration with our local and federal partners to rescue those being victimized and bring justice to those who profit from the misery of others.”
The case is being investigated by Homeland Security Investigations (HSI), the South Carolina Law Enforcement Division (SLED), the Horry County Sheriff’s Office, and the Myrtle Beach Police Department. Assistant United States Attorneys Derek A. Shoemake and Amy Bower are prosecuting the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, 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 identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
Acting United States Attorney DeHart stated that all charges in indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
If you or someone you know may have information relevant to this investigation, please call the HSI Tipline at 1-866-347-3423.
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Movie Producer Indicted for Operating A Prostitution Business and Money Laundering SchemeRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, and George M. Crouch Jr., Special Agent-in-Charge of the Newark Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging DILLON JORDAN, a/k/a “Daniel Jordan,” a/k/a “Daniel Maurice Hatton, a/k/a “Daniel Bohler, with conspiracy to violate the Mann Act, substantive Mann Act and Travel Act violations, and money laundering in connection with operating a prostitution business and laundering the proceeds of that prostitution business through two front companies – a purported party and event planning company and an actual movie production company. JORDAN was arrested today in San Bernardino County, California, and will be presented today in the Central District of California.
Manhattan U.S. Attorney Audrey Strauss said: “As alleged, for years, Dillon Jordan operated an extensive and far-reaching prostitution business, using a purported event planning company and a movie production company to conceal the proceeds he made from exploiting women. Now the party is over and the film is a wrap.”
FBI Special Agent-in-Charge George M. Crouch Jr. said: “This defendant apparently thought he could hide his alleged criminal dealings behind a supposedly legitimate business. But the FBI, in its mission to protect our citizens, uses every tool at its disposal to unmask those who violate federal law and assist the impacted victims. We encourage anyone who was victimized by this defendant, and anyone with additional information, to contact our Newark field office.”
As alleged in the Indictment unsealed today in Manhattan federal court:[1]
From in or about 2010 through at least in or about May 2017, JORDAN operated a prostitution business throughout the United States and abroad. JORDAN maintained a roster of women who resided around the United States and who, in exchange for payment, performed sexual acts for JORDAN’s clients at locations throughout the United States, including the Southern District of New York, and abroad. JORDAN communicated with the clients of his prostitution business by email to coordinate the prostitution services, which included sending to clients photos of women who were available for hire for prostitution services, discussing the price of prostitution services, and overseeing travel logistics for women to travel to engage in prostitution. At times, JORDAN himself arranged the interstate travel from the women to engage in prostitution, and at other times, clients, at JORDAN’s direction, arranged the interstate travel for the women whom JORDAN directed to those clients. To facilitate his prostitution business, JORDAN also coordinated with a United Kingdom-based madam by sharing and referring customers and prostitutes.
JORDAN primarily managed the finances of the prostitution business through two front companies – a purported party and event planning company and a movie production company – incorporated in California. JORDAN opened multiple bank accounts for these companies, which he used to accept cash, wire, and check payments for prostitution services from clients and to pay for the expenses of the prostitution business, including paying the women for their prostitution services by cash and check. By using the two front companies to receive deposits from the prostitution business, JORDAN ensured that transactions involving those proceeds from the prostitution business would disguise the nature, source, and origin of those proceeds.
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JORDAN, 49, of Lake Arrowhead, California, is charged with: one count of conspiracy to violate the Mann Act, which carries a maximum sentence of five years in prison; one count of enticement, which carries a maximum sentence of 20 years in prison; one count of use of interstate commerce to promote unlawful activity, which carries a maximum sentence of five years in prison; and one count of money laundering, which carries a maximum sentence of 20 years in prison. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
We urge anyone who feels she may be a victim of, or have information related to, the conduct in this case to please contact the FBI at [email protected] or (973) 792-3000.
Ms. Strauss praised the investigative work of the FBI. This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorney Cecilia E. Vogel is in charge of the prosecution.
The allegations in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Mission Woman Indicted for Methamphetamine TraffickingRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Mission, South Dakota, woman has been indicted by a federal grand jury for Possession with Intent to Distribute a Controlled Substance.
Mareca Rodriquez, age 29, was indicted on April 13, 2021. She appeared before U.S. Magistrate Judge Mark A. Moreno on July 13, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 40 years in federal prison and/or a $5,000,000 fine, a lifetime of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on March 3, 2021, in Mission, South Dakota, Rodriquez knowingly possessed approximately 329 grams of methamphetamine with intent to distribute it.
The charge is merely an accusation and Rodriquez is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Rodriquez was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Mission Woman Indicted for Failure to AppearRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Mission, South Dakota, woman has been indicted by a federal grand jury for Failure to Appear.
Tera Jo Larvie, age 28, was indicted on June 8, 2021. She appeared before U.S. Magistrate Judge Mark A. Moreno on July 14, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on May 18, 2021, Larvie failed to appear for her jury trial for Second Degree Burglary and Larceny.
The charge is merely an accusation and Larvie is presumed innocent until and unless proven guilty.
The investigation is being conducted by the United States Marshals Service. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Larvie was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Mission Man Indicted for Threatening a Federal OfficerRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Influencing a Federal Officer by Threat.
Donovan Jace Oakie, age 33, was indicted on July 13, 2021. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 14, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on June 30, 2021, in Todd County, South Dakota, Oakie threatened to assault and murder a law enforcement officer who was employed by the United States Marshals Service.
The charge is merely an accusation and Oakie is presumed innocent until and unless proven guilty.
The investigation is being conducted by the United States Marshals Service, the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Oakie was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Minden, Louisiana Woman Pleads Guilty to Theft of Government FundsRead the Press Release
Jackson, MS – Teressia Garner, 60, of Minden, Louisiana, pleaded guilty on July 9, 2021, to embezzling, and converting government funds to her own use, announced Acting U.S. Attorney Darren J. LaMarca; Douglas Williams, FBI Special Agent in Charge, New Orleans Field Division; Dax Robertson, USDA OIG Special Agent in Charge in New Orleans; and Stephen Street, Louisiana Inspector General
According to court documents, Teressia Garner was the director and registered agent of Safe Haven Development, Inc., a non-profit corporation. Safe Haven entered into an agreement with the Louisiana Department of Education’s Division of Nutrition Support to participate in several Child Nutrition Programs, including the Child and Adult Care Food Program and the Summer Food Nutrition Program. Funding for these programs is federal government money administered by the Food and Nutrition Service, an agency of the United States Department of Agriculture. Safe Haven received federal funding and participated in these programs from 2011 through 2015 by providing meals to those children and adults that are enrolled in participating child- care centers, adult day care centers, and day care homes.
On December 15, 2015, Teressia Garner planned a Christmas party for the employees of Safe Haven at the Wyndham Garden Shreveport. The defendant paid for the party, totaling $9,578.48 with program funds that had been deposited into the Safe Haven business account. The party included the expense of renting a large ballroom, catered food, and an open bar serving alcohol. The program funds used for the party were intended to be used for the Child Nutrition Programs and not for entertainment purposes.
"Ms. Garner’s greed was evident, stealing money designated for the USDA Summer Food Service and Child and Adult Care Food Programs, which provide nutritional meals for children and adults in low-income families, to pay her own personal expenses. Ms. Garner’s guilty plea sends a clear message and will be a deterrent to others who would attempt to defraud American taxpayers”, said Douglas Williams, FBI New Orleans Special Agent in Charge. “I would like to thank the efforts put forth by our partners at the United States Attorney’s Office, Southern District of Mississippi, Office of State Inspector General, State of Louisiana, and the Office of Inspector General, United States Department of Agriculture.”
USDA OIG Special Agent in Charge Dax Roberson stated: “I want to thank the US Attorney’s office, OIG special agents, and our investigative partners for their hard work on this investigation. When the integrity of nutrition programs for needy children is violated by criminal conduct, the Office of Inspector General will pursue justice to the fullest extent of the law.”
Louisiana Inspector General Stephen Street commented: “This is just the latest in a series of successful criminal cases where summer nutrition funds were stolen without a shred of regard for the children the funds were supposed to benefit. It is criminal behavior based in pure greed, and we have zero tolerance for it. The Louisiana OIG will continue to work with our law enforcement partners to aggressively pursue criminal consequences for anyone who steals from the public.” Street added, “I want to thank Assistant United States Attorneys Erin Chalk and Meghan McCalla for their outstanding work, as well as our partners at the FBI and USDA OIG.”
Garner pleaded guilty to Theft of Government Funds in the United States District Court for the Western District of Louisiana, Shreveport Division. She is scheduled to be sentenced by United States District Judge Donald E. Walter on October 13, 2021 at 10:00 a.m. in Shreveport. She faces a maximum penalty of 10 years in prison. The District Judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case is being prosecuted by Southern District of Mississippi Assistant United States Attorneys Erin Chalk and Meghan McCalla, Acting Under the Authority Conferred by 28 U.S.C. §515, to appear in the Western District of Louisiana.
Mexican National Admits Possession with Intent to Distribute MethamphetamineRead the Press Release
NEWARK, N.J. – A Mexican National today admitted possessing with intent to distribute methamphetamine, Acting U.S. Attorney Rachael A. Honig announced.
Mayolo Castro Santamaria, 39, pleaded guilty by videoconference before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of possessing with intent to distribute 50 grams or more of methamphetamine.
According to documents filed in this case and statements made in court:
On June 26, 2020, Santamaria possessed 64.76 grams of methamphetamine in his vehicle.
The possession with intent to distribute charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life imprisonment, and a $10 million fine. Sentencing is scheduled for Nov. 15, 2021.
Acting U.S. Attorney Honig credited special agents of the U.S. Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson, and the Cedar Grove Police Department with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Alexandra Tsakopoulos Saker of the OCDETF/Narcotics Unit in Newark.
Manchester Man Sentenced to 63 Months for Fentanyl TraffickingRead the Press Release
CONCORD - Darius Augusto Guzman Ruiz, 30, of Manchester, was sentenced to 63 months in federal prison for participating in a fentanyl trafficking conspiracy, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, in the fall of 2019, Manchester police officers learned from a cooperating individual that Guzman Ruiz was selling between 100 and 300 grams of fentanyl at a time to other distributors in Manchester. Between October 10, 2019 and November 1, 2019, working with law enforcement officers, the cooperator conducted four controlled purchases of fentanyl from Guzman Ruiz. Each transaction involved approximately 180 grams of fentanyl.
On November 25, 2019, the Manchester Police Department executed search warrants at various residences associated with Guzman Ruiz. Officers seized over $100,000 in cash, over 400 grams of fentanyl, and drug packaging and pressing equipment.
Guzman Ruiz previously pleaded guilty on March 3, 2021. He also forfeited $112,330 and a 2015 Honda CR-V LX which were seized at the time of his arrest.
Guzman Ruiz faces likely deportation to Dominican Republic after serving his prison sentence.
“Fentanyl traffickers have caused tremendous harm by selling a lethal product that has harmed countless residents of the Granite State,” said Acting U.S. Attorney Farley. “We continue to work closely with all of our law enforcement partners to identify and prosecute the drug dealers who are selling fentanyl and other deadly opioids. As this sentence demonstrates, fentanyl traffickers in New Hampshire will serve lengthy prison sentences for their unlawful and dangerous conduct.”
“Today’s sentence not only holds Mr. Guzman Ruiz accountable for his crimes but serves as a warning to those traffickers who are contributing to the drug crisis,” said DEA Special Agent in Charge Brian D. Boyle. “This investigation demonstrates the strength of collaborative law enforcement efforts in New Hampshire and our strong partnership with the U.S. Attorney’s Office.”
“Darius Augusto Guzman Ruiz and his fellow distributors steadily poisoned the parts of Manchester they controlled by dealing deadly drugs,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Today’s sentence is indicative of the success that can be attained when agencies combine resources to put drug traffickers out of business and behind bars, as we work together to make our communities safer.”
This matter was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, and the Manchester Police Department. The case was prosecuted by Assistant U.S. Attorney Georgiana MacDonald. Assistant U.S. Attorney Robert Rabuck assisted with forfeiture aspects of this case.
This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Man Who Was Released from Prison Due to Pandemic Sent Back to Prison for Violating Supervised ReleaseRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that ANTHONY WHITLEY, 38, of New London, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 18 months of imprisonment for violating the conditions of his federal supervised release.
According to court documents and statements made in court, on March 3, 2017, a court-authorized search of a New London apartment connected to Whitley revealed approximately 14 grams of heroin, approximately 27 grams of cocaine, approximately 150 grams of crack cocaine, items used to process and package narcotics for street sale, a .380 caliber semiautomatic handgun, ammunition and $9,180 in cash. Whitley pleaded guilty and, on October 23, 2018, was sentenced to 60 months of imprisonment and four years of supervised release.
Whitley, who had been detained since March 3, 2017, was released from prison on September 24, 2020, after Judge Meyer granted Whitley’s motion for compassionate release due to factors related to the COVID-19 pandemic, and modified Whitley’s sentence to time served and four years of supervised release.
On March 15, 2021, New London Police arrested Whitley and charged him with interfering with officers/resisting arrest. The charge followed Whitley’s flight from police after an alleged controlled purchase of narcotics from him.
Whitley has been detained since May 5, 2021, when his supervised release was revoked.
In addition to his prior federal conviction, Whitley has eight prior state convictions, including felony convictions for drug and firearm offenses.
This case was prosecuted by Assistant U.S. Attorney Natasha M. Freismuth.
Long Island MS-13 Gang Member Sentenced to 25 Years’ Imprisonment for Murder in BrentwoodRead the Press Release
Earlier today, in federal court in Central Islip, Jerlin Villalta, a member of the Freeport Locos Salvatruchas (FLS) clique of La Mara Salvatrucha, also known as the MS-13, a transnational criminal organization, was sentenced by United States Circuit Judge Joseph F. Bianco to 25 years’ imprisonment for racketeering, including predicate acts relating to his participation in the June 3, 2016 murder of Jose Pena and a conspiracy to distribute marijuana. Villalta pleaded guilty to the charges in October 2018.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Stuart Cameron, Acting Commissioner, Suffolk County Police Department (SCPD), announced the sentence.
“Today’s sentence holds the defendant to account for his vicious stabbing of the victim who was killed for violating the depraved rules of the MS-13. It is fitting that the defendant spend decades behind bars for his participation in this cruel and intentional taking of a human life,” stated Acting U.S. Attorney Kasulis. “This Office, in partnership with the Long Island Gang Task Force, will not rest until the MS -13 gang and its violence is eliminated from our communities.”
“This sentencing will ensure that another member of MS-13, who took part in a violent, senseless murder, will be imprisoned for his actions,” stated SCPD Acting Commissioner Cameron. “The department’s incredible partnership with the FBI’s Long Island Gang Task Force and Eastern District of New York allows gang members, like Villalta, to be held accountable –while sending a message to gang leadership that we will not waver until gang violence is eradicated. I commend all the law enforcement officers, whose countless hours and dedication ensured a successful conclusion on this case.”
In 2016, Villalta and several co-conspirators, including Carlos Argueta and Elmer Alexander Lopez, decided to kill Pena, a member of the MS-13, because he was suspected of violating gang rules. Prior to the murder, Villalta, Argueta, Lopez and other MS-13 members held meetings to discuss killing Pena because they suspected that Pena had cooperated with law enforcement following his arrest in connection with his participation in the attempted murder of suspected rival gang members outside a public library in Brentwood on or about January 15, 2016, and also that Pena might be homosexual. After consulting with MS-13 leadership in El Salvador, Villalta, Argueta, Lopez and the other MS-13 members agreed to murder Pena and tasks were assigned to each of the co-conspirators to carry out the plan, including obtaining weapons and a vehicle to be used in the murder. On June 3, 2016, Villalta, Argueta, Lopez and the other MS-13 members lured Pena into a car and drove to a secluded wooded area in Brentwood on the grounds of an abandoned psychiatric hospital, where they attacked Pena, stabbing and slashing him with knives until he was dead. Pena’s body was discovered four months after his murder. Argueta and Lopez previously pled guilty to racketeering charges in connection with the Pena murder. In December 2018, Lopez was sentenced to 300 months’ imprisonment. Argueta is awaiting sentencing.
Villalta also pleaded guilty to participating in a drug conspiracy, admitting that between January 2016 and December 2016, he and other members of the FLS conspired to distribute marijuana to raise money for the MS-13.
Today’s sentencing is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent, transnational criminal organization. The MS-13’s leadership is based in El Salvador, Honduras, Guatemala and Mexico, but the gang has thousands of members across the United States, comprised primarily of immigrants from Central America. With numerous branches, or “cliques,” the MS-13 is the most violent criminal organization on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders and assaults. Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 60 murders in the Eastern District of New York and has convicted dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, which is comprised of agents and officers of the FBI, SCPD, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation Office, Suffolk County Sheriff’s Office, the New York State Police, the Hempstead Police Department, the Rockville Centre Police Department and the New York State Department of Corrections and Community Supervision.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys John J. Durham, Paul G. Scotti, Justina L. Geraci and Megan E. Farrell are in charge of the prosecution.
The Defendant:
JERLIN VILLALTA (also known as “Sonic”)
Age: 24
Brentwood, New YorkE.D.N.Y. Docket No. 16-CR-403 (S-6)(JFB)
Lawrence Woman Pleads Guilty to Identity Theft and Unemployment Fraud Related to COVID-19 PandemicRead the Press Release
BOSTON – A Lawrence woman pleaded guilty today in connection with her involvement in a scheme to fraudulently obtain COVID-19-related unemployment assistance.
Raquel Pena, 40, pleaded guilty to wire fraud, conspiracy to commit wire fraud and aggravated identity theft. U.S. District Court Judge William G. Young scheduled sentencing for Nov. 4, 2021. Pena was charged by criminal complaint on April 1, 2021.
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) created a temporary federal unemployment insurance program called Pandemic Unemployment Assistance (PUA). PUA, administered by the Massachusetts Department of Unemployment Assistance, provides unemployment insurance benefits for individuals who are not eligible for other types of unemployment benefits (e.g., the self-employed, independent contractors or gig economy workers). Pena and others conspired to file fraudulent claims for PUA using others’ personally identifiable information. Pena recruited acquaintances to receive the proceeds of the fraudulent claims into their bank accounts, withdraw all or a portion of those funds and give the cash to Pena. The investigation connected Pena and her co-conspirators to more than $360,000 in unemployment claims between May 2020 and March 2021.
The charges of conspiracy to commit wire fraud and wire fraud each provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutively to any other sentenced imposed, one year 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. Bonavolanta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Michael Mikulka, Special Agent in Charge of Department of Labor, Office of Inspector General, Office of Investigations made the announcement today. The Massachusetts Department of Unemployment Assistance provided assistance in the investigation. Assistant U.S. Attorney Christopher J. Markham of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Kirtland Couple Sentenced to 18 Months for Bribing Former City of Cleveland Official and Tax FraudRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that a Kirtland couple was sentenced by U.S. Judge Christopher A. Boyko to 18 months imprisonment after both pleaded guilty to bribery of a former city of Cleveland demolition official.
Joseph Tucceri, III, 75, and Gwen Tucceri, 61, were both sentenced to 18 months imprisonment, two years of supervised release and ordered to pay restitution in the amount of $114,422 to the IRS.
According to court records, the Tucceris owned and operated “R Demolition,” a business that provided demolition and construction services in the Cleveland area. From December of 2016 through May of 218, the Tucceris provided things of value, including more than $1,600 in cash payments, to Rufus Taylor, the former Chief of the Demolition Bureau for the city of Cleveland, in return for expedited service and favorable treatment regarding work performed by R Demolition on contracts within the city of Cleveland.
Additionally, Joseph and Gwen Tucceri submitted false income tax returns that underreported their income for the years 2015, 2016, and 2017. As a result, the returns understated the full amount of taxes owed.
Rufus Taylor was sentenced in June of 2021 to 21 months imprisonment for his role in the scheme.
This case was investigated by the Cleveland Division of the FBI, Department of Housing and Urban Development Office of Inspector General and IRS-Criminal Investigation. This case is being prosecuted by Assistant United States Attorneys Chelsea S. Rice and Elliot D. Morrison.
Kingsport Veterinarian Agrees to Pay $70,000 in Civil Penalties to Settle Alleged Violations of the Controlled Substance ActRead the Press Release
KNOXVILLE, Tenn. – On July 15, 2021, The Andes-Straley Veterinary Hospital in Kingsport, Tennessee, and its owner, Gary C. Andes, D.V.M., agreed to pay the United States $70,000 in civil penalties to resolve allegations that Dr. Andes and the hospital violated the Controlled Substances Act (“CSA”). The CSA was enacted to prevent the diversion or misuse of controlled substances by requiring persons and companies involved in the chain of distribution to maintain complete and accurate records relating to the controlled substances they receive, administer, and dispense.
According to the contentions of the United States contained in the settlement agreement, beginning in January 2019 investigators from the U.S. Drug Enforcement Administration (DEA), along with the Tennessee Bureau of Investigation (TBI) and Tennessee Department of Health (TNDOH), conducted an investigation into allegations that Dr. Andes and the hospital manager were failing to maintain effective controls and procedures to guard against diversion of controlled substances as required by law. The investigation included on-site inspections of records, and an accountability audit of controlled substance inventories and record-keeping processes at the hospital. Based on the findings of the investigation, the United States alleged that the hospital failed to maintain complete and accurate records of the controlled substances it received, failed to conduct proper inventories of controlled substances on hand, and failed to report to the DEA known thefts of controlled substances. The investigation also revealed significant shortages of various controlled substances received by the hospital. Today’s settlement resolves allegations that Dr. Andes and the hospital violated several provisions of the CSA from at least March 2017 through December 2018.
As part of the settlement, Dr. Andes and the hospital also entered into a Memorandum of Agreement with the DEA requiring that they take additional and ongoing measures to comply with the CSA, including implementing stringent inventory and record-keeping requirements, agreeing not to maintain supplies of certain controlled substances at the hospital, and agreeing to cooperate with future audits by the DEA to verify their compliance with the CSA.
This settlement resulted from a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Tennessee, the DEA, the TBI, and the TNDOH.
Assistant United States Attorney Joseph C. Rodriguez represented the United States.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
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Justice Department Settles with Delivery Services Company to Resolve Retaliation ClaimRead the Press Release
The Department of Justice today announced that it has reached a settlement agreement with Around the Clock Dispatch Inc., a freight and delivery services company in Queens Village, New York.
The settlement resolves the department’s claim that Around the Clock violated the anti-discrimination provision of the Immigration and Nationality Act (INA) by retaliating against a worker because he asked for the department’s help in addressing his concerns about an immigration-related employment practice.
The department initiated its investigation after the worker filed a charge, and determined that Around the Clock suspended the worker for three days without pay because he called the Civil Rights Division’s Immigrant and Employee Rights Section (IER) to ask for help addressing a concern about the company’s process for verifying his work authorization. IER’s hotline program offers information and assistance to workers and employers to prevent discrimination and to resolve potential immigration-related employment disputes informally, when workers request such intervention. The INA prohibits retaliation and intimidation against individuals who oppose what they reasonably believe are violations of the law that IER enforces, including by calling IER’s hotline. Individuals who file a charge with IER, cooperate with an IER investigation, or otherwise assert their own or others’ rights are also protected under this law.
“Workers should not face negative consequences for raising concerns about actions that may violate the Immigration and Nationality Act’s anti-discrimination provision,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We encourage workers and employers to contact the Immigrant and Employee Rights Section’s hotline for information on their rights and responsibilities, to help resolve disputes at the earliest opportunity possible. Protecting those who contact the hotline from retaliation is critical to ensuring its success.”
Under the settlement, Around the Clock will pay $3,600 in civil penalties to the United States and nearly $900 in back pay to the affected individual. The settlement also requires Around the Clock to train employees on the requirements of the INA’s anti-discrimination provision and be subject to departmental monitoring and reporting requirements.
IER, a section of the Civil Rights Division, is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits discrimination based on citizenship or immigration status and national origin in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status, or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, may file a charge. The public can also call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.
Jury Convicts Pittsfield Man of Drug and Firearm OffensesRead the Press Release
BOSTON – A Pittsfield man was found guilty by a federal jury in Springfield yesterday in connection with firearm and drug trafficking offenses.
Elvins Sylvestre, 43, was convicted following a three-day trial of possession with intent to distribute heroin, possession of cocaine, being a felon in possession of a firearm and possessing a firearm in furtherance of a drug trafficking felony. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Nov. 19, 2021.
Evidence at trial established that in November 2019, Sylvestre was found in possession of heroin and cocaine along with a handgun and over 40 rounds of ammunition. Federal law prohibits Sylvestre from possessing a firearm or ammunition due to a prior felony conviction.
The charges provide for a sentence of up to life in prison, at least three years of supervised release and a fine of up to $1 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; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Pittsfield Police Chief Michael Wynn made the announcement. Assistant U.S. Attorney Todd E. Newhouse of Mendell’s Springfield Branch Office prosecuted the case.
Judges sentences former SLMPD Officer for perjury regarding undercover officer’s assaultRead the Press Release
ST. LOUIS – United States District Court Judge E. Richard Webber sentenced Bailey Colletta to three years of probation and two consecutive weekends of imprisonment on today’s date. The 28-year-old St. Louis, Missouri resident pleaded guilty in September 2019 to making false statements to a federal grand jury about her knowledge of the arrest and assault of a fellow St. Louis Metropolitan Police Department officer who was working undercover and whom police mistakenly believed was a protestor.
As a result of the 2017 acquittal of a former police officer on a state murder charge, protests were taking place in downtown St. Louis. In an effort by the St. Louis Metropolitan Police Department to keep peace and order, the victim undercover officer was assigned to the protest detail. Colletta was also assigned to the protest detail in her capacity as a police officer. Colletta witnessed the assault of the victim officer by other officers. As part of the investigation into this assault, Colletta was called before the federal grand jury. Colletta provided false and misleading statements to the grand jury regarding her knowledge of the assault.
Colletta’s co-defendant, Randy Hays, who had earlier pleaded guilty to his role in the matter, was sentenced to a 52-month term of imprisonment on Tuesday. Co-defendant Dustin Boone was found guilty in June of aiding and abetting the deprivation of the victim officer’s civil rights under the color of law. His sentencing hearing is scheduled for September 15, 2021.
Co-defendant Christopher Myers faces a charge of destruction of evidence related to the arrest and assault of the victim police officer. Christopher Myers is presumed innocent and the charge that he presently faces is merely an accusation and does not constitute proof of guilt.
The case is being investigated by the Federal Bureau of Investigation. First Assistant United States Attorney Carrie Costantin and Assistant United States Attorney Rob Livergood are handling the matter.
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Jefferson County Felon Sentenced for Federal Firearms ViolationsRead the Press Release
BEAUMONT, Texas – A Port Arthur convicted felon has been sentenced to federal prison for firearms violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Lorenzo Antonio Salinas, 33, pleaded guilty on April 6, 2021, to being a prohibited person in possession of a firearm and was sentenced to 27 months in federal prison today by U.S. District Judge Thad Heartfield.
“Violent criminals like Lorenzo Salinas cannot be allowed to possess firearms,” said Acting U.S. Attorney Nicholas J. Ganjei. “My office will never stop focusing our efforts on keeping Southeast Texas safe by aggressively prosecuting violations of federal firearms laws.”
According to information presented in court, on March 6, 2020, Salinas was the passenger of a vehicle that was stopped for a traffic violation. The driver gave consent to search the vehicle during which time law enforcement officers discovered a pistol under the passenger seat. Salinas admitted the pistol was his and that he was a convicted felon. Further investigation revealed Salinas had been previously convicted of aggravated robbery in Jefferson County in 2007. As such, he is prohibited from owning or possessing firearms or ammunition. Salinas was indicted by a federal grand jury on Feb. 22, 2021.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Port Arthur Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Matt Quinn.
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Jamestown Man Going to Prison for 30 Years for Producing and Possessing Child PornographyRead 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 James A. Chapman a/k/a Fatz Guy a/k/a Perverted Doe, 40, of Jamestown, NY, who was convicted of production and possession of child pornography, was sentenced to serve 30 years in prison and life supervised release by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that on November 24, 2014, Chapman and Victim 1 communicated via Facebook Messenger about engaging in sexual activity. During the communications, the defendant offered to pay Victim 1 and one of her friends $60 each to have sex with him. Victim 1 stated that she was 16-years-old and that her friend was the same age. Later that evening, Victim 1 and Victim 2 went to Chapman’s residence in Jamestown, and the defendant engaged in sexual intercourse with them, after which Chapman paid each victim $60.
Following the sexual activity, the defendant used his cellular telephone to take a picture of Victim 1 and Victim 2 completely nude sitting on his bed. A review of Chapman’s Facebook accounts revealed that he then distributed the photograph, which constitutes child pornography, to four other individuals.
Subsequently, on April 7, 2017, the defendant began communicating with Victim 3, who was 17-years-old, through Facebook. During their communications, Chapman requested and received a sexually explicit image of Victim 3. The defendant then sent the image, which constitutes child pornography, to another individual. In addition, Chapman sent Victim 3 the sexually explicit image he took of Victim 1 and Victim 2.
“Thanks to this sentence, the defendant will not be able to victimize or sexually exploit minors for the next three decades,” noted U.S. Attorney Kennedy. “Working with our partners at every level of law enforcement, my Office will continue do all that we can to ensure that the most vulnerable members of our community are protected from those who seek to do them harm.”
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and the Jamestown Police Department, under the direction of Chief Timothy Jackson.
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Jamaican Nationals Plead Guilty to Defrauding U.S. Citizens via Lottery ScamsRead the Press Release
PROVIDENCE, R.I. – Two Jamaican nationals admitted to a federal court judge in Providence that they participated in lottery scams that defrauded U.S citizens in several states, including Rhode Island and Massachusetts, of hundreds of thousands of dollars. Unsuspecting victims were contacted by scammers, told they had won large sums of money in a lottery, but were required to pay “fees” to collect their winnings.
According to court documents, beginning in at least May 2018, Jason Wedderburn 42, and Kayan Kitson, 38, participated in a conspiracy in which conspirators made unsolicited contact with people in several states, often times senior citizens, informing them that they had won hundreds of thousands of dollars, and in some instances over a million dollars, in a lottery. For them to collect their winnings, victims were told they first would have to pay “up-front fees” such as taxes or processing costs. The victims were instructed to either mail to Wedderburn, Kitson, or others, checks or money orders made out to the defendants to cover the cost of the fees, or were provided instructions for depositing the funds into bank accounts controlled by the defendants and others. Payments ranged from thousands to hundreds of thousands of dollars. Some victims were contacted multiple times and told they needed to make additional payments. Once deposited, the funds were either quickly withdrawn, transferred to other bank accounts, or withdrawn from ATMs in Jamaica.
No lottery winnings were ever paid to any of the individuals contacted by the scammers. According to court documents, one Massachusetts victim was defrauded of more than $325,000. In total, over $600,000 was stolen primarily from elderly victims as part of the scam.
Appearing before U.S District Court Judge Mary S. McElroy, Jason Wedderburn and Kayan Kitson, detained since their arrest in Florida in August 2020, pleaded guilty to conspiracy to commit mail and wire fraud, announced Acting United States Attorney Richard B. Myrus.
Wedderburn, who pled guilty on Tuesday, and Kitson who pled guilty today are scheduled to be sentenced on October 6, 2021.
The cases are being prosecuted by Assistant United States Attorney Sandra R. Hebert, with the assistance of Assistant U.S. Attorney Christine D. Lowell.
The matter was investigated by the U.S. Postal Inspection Service. Acting United States Attorney Myrus thanks the FBI for its assistance.
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Jackson County Man Pleads Guilty to Being a Felon in Possession of a FirearmRead the Press Release
Gulfport, Miss. - A Jackson County man pleaded guilty to being a convicted felon in possession of a firearm, announced Acting U.S. Attorney Darren J. LaMarca and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to court documents, Ledarrius Jamontaie Forrest, 30, of Moss Point, was arrested on August 21, 2020, after a state search warrant was served at a Moss Point residence where Forrest was the sole occupant. During the search, a rifle, ammunition, and narcotics were found. The firearm, a Norinco, Model MAK90 Sporter, 7.62 rifle, was reported stolen.
Forrest was confirmed to have two state felony convictions from the Circuit Court of Jackson County. He had been convicted of possession of controlled substance, for which he ultimately was sentenced to serve a term of 3 years in the custody of the Mississippi Department of Corrections.
Forrest is scheduled to be sentenced on Tuesday, October 5, 2021, and faces a maximum penalty of 10 years in prison and a $250,000 fine. A higher maximum penalty of 15 years to life can apply if a defendant is determined to be an Armed Career Criminal. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Jackson County Metro Enforcement Task Force, and the Jackson County Sheriff’s Department.
The case is being prosecuted by Assistant U.S. Attorney Stan Harris.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Iowa City Man Charged with Firearms OffensesRead the Press Release
Joshua Brown, age 49, of Iowa City, Iowa, has been charged with possession of a firearm by a felon, possession of a stolen firearm, and possession of a firearm with an obliterated serial number. The charges are contained in an Indictment unsealed on July 9, 2021, in United States District Court in Cedar Rapids.
The Indictment alleges that, in July 2020, Brown possessed a pistol after having been convicted of unauthorized possession of an offensive weapon in Johnson County in 1995 and possession of a firearm by a felon in Cedar County in 1996. The Indictment also alleges that the pistol was stolen and had an obliterated serial number.
If convicted, Brown faces a possible maximum sentence of 25 years’ imprisonment, a $750,000 fine, and three years on supervised release following any imprisonment.
Brown appeared for a detention hearing on July 14, 2021, in federal court in Cedar Rapids and was released on bond. Brown’s next appearance for trial is set for September 7, 2021.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
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 is being investigated by the Cedar Rapids Police Department, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Linn County Sheriff’s Office.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 21-14.
Follow us on Twitter @USAO_NDIA.
Honduran Woman Pleads Guilty to Conspiracy to Entice Individuals to Travel in Interstate Commerce to Engage in ProstitutionRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that BIANCA ZELAYA-MERTENS, a/k/a Maritza a/k/a Jossi, 28, of Honduras, pleaded guilty on July 14, 2021 to conspiring to entice individuals to travel in interstate commerce to engage in prostitution.
According to court documents filed in this case, in February 2020, while conducting an undercover operation with the intent of positively identifying the victims of human trafficking, Homeland Security Investigations (“HSI”) learned that BIANCA ZELAYA-MERTENS (“ZELAYA-MERTENS”) was engaged in sex trafficking. A confidential informant contacted ZELAYA-MERTENS on the telephone and arranged a meeting for a commercial sex act. ZELAYA-MERTENS arrived at the designated location accompanied by a sex worker and a commercial sex act was negotiated with the confidential informant. After the sex act was negotiated and the informant paid the negotiated price, but before the act occurred, an NOPD detective and HSI agents opened the door to the adjoining room and clearly announced “police.” During a subsequent interview by agents, the sex worker stated that ZELAYA-MERTENS told her that she could make money doing prostitution. Thereafter, on Tuesday, February 11, 2020, the sex worker travelled from Houston, Texas to New Orleans and ZELAYA-MERTENS told her she would be working by giving clients sensual massages which included having sex. She stated that she charged fifty dollars for each client but had to give ZELAYA-MERTENS twenty-five dollars.
After being advised of her Miranda rights, ZELAYA-MERTENS stated to HSI agents that she had been introduced to this line of work by co-defendant Waleska Miroslava Cabus-Alvarado, who arranged for women to come to Louisiana each week for prostitution. They both used the same recruiter to locate sex workers.
ZELAYA-MERTENS faces a maximum penalty of five (5) years incarceration, a $250,000 fine, up to a three (3) year term of supervised release, and a mandatory special assessment of $100.00. ZELAYA-MERTENS’S sentencing is scheduled on October 13, 2021.
U.S. Attorney Evans praised the work of Homeland Security Investigations in investigating this matter. Assistant United States Attorney Tracey Knight is in charge of the prosecution.
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Hampshire County man admits to role in drug trafficking operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Joshua Michael Bourne, of Shanks, West Virginia, has admitted to his role in a drug trafficking conspiracy, Acting United States Attorney Randolph J. Bernard announced.
Bourne, age 36, pleaded guilty to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin. Fentanyl, and Cocaine Base.” Bourne admitted to working with another individual to distribute the controlled substances from January 2020 through October 2020.
Bourne faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara K. Omps-Botteicher is prosecuting the case on behalf of the government. The U.S. Attorney’s Office worked closely with the Hampshire County Prosecutor’s Office to bring this case forward. In addition, the Potomac Highlands Drug & Violent Crime task Force, a HIDTA funded initiative, investigated. The task force is comprised of the Drug Enforcement Administration, the FBI, the West Virginia State Police, the Mineral County Sheriff's Office, the Hampshire County Sheriff's Office, the Hardy County Sheriff's Office, the Keyser Police Department, and the Grant County Sheriff's Office
U.S. Magistrate Judge Robert W. Trumble presided.
Fresno Man with Four Prior Convictions for Unlawfully Possessing Firearms and Ammunition Faces Federal ChargesRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Earnest Donte Ruff, 23, of Fresno, charging him with possessing ammunition after being convicted of a felony offense, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on April 21, 2021, Ruff was arrested and found to be in possession of a loaded .40‑caliber gun with no serial number. Ruff has four convictions for illegally possessing firearms or ammunition.
This case is the product of an investigation by the Federal Bureau of Investigation and the Fresno Police Department Multi-Agency Gang Enforcement Consortium. Assistant U.S. Attorney Justin J. Gilio is prosecuting the case.
If convicted, Ruff faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Fort Wayne Man Sentenced to over 24 Years in PrisonRead the Press Release
FORT WAYNE – Larry Lamb, 40, of Fort Wayne, Indiana was sentenced before United States District Court Judge Holly A. Brady following his plea of guilty to being a felon in possession of a firearm, distributing 50 grams or more of methamphetamine and possessing a firearm in furtherance of a drug trafficking crime, announced Acting United States Attorney Tina L. Nommay.
Lamb was sentenced to 295 months in prison followed by 5 years of supervised release.
According to documents in this case, between May 6, 2019, and August 26, 2020, Lamb and other individuals were involved in a conspiracy to distribute significant amounts of controlled substances. Throughout the conspiracy, Lamb delivered in excess of 118 grams methamphetamine to another person. On two occasions, he sold a firearm to a person he knew to be prohibited due to a previous felony conviction. During the execution of a search warrant in December of 2019, police found 10 firearms, drugs (including methamphetamine, heroin and fentanyl) and other evidence of drug distribution. During a traffic stop in April 2020, Lamb was found to have possessed 5 firearms, high capacity magazines, ammunition, and drugs. Lamb has multiple felony convictions.
This case is a result of a joint investigation conducted by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration, with the assistance of the US Marshals Service and multiple local law enforcement agencies, including the Indiana State Police, Allen County Sheriff’s Department, Allen County Drug Task Force, Adams County Sheriff’s Office, Huntington Police Department, Auburn Police Department, and the Fort Wayne Police Department. This case was prosecuted by Assistant United States Attorneys Stacey R. Speith and Brent A. Ecenbarger.
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Fort Wayne Man Sentenced to 108 Months in PrisonRead the Press Release
FORT WAYNE- Luis Rodriguez-Solorio, 24, of Fort Wayne, Indiana, was sentenced before United States District Court Judge Holly A. Brady following his plea of guilty to being a felon in possession of a firearm and reentry of deported alien, announced Acting United States Attorney Tina L. Nommay.
Rodriguez-Solorio was sentenced to 9 years in prison followed by 2 years of supervised release. It is anticipated that Rodriguez-Solorio will be deported upon his release from incarceration.
According to documents in this case, on May 28, 2020 police viewed a social media post on an account belonging to Luis Rodriguez-Solorio. The social media post contained a video showing a man firing a fully automatic pistol which qualifies as a machine gun under federal law. The caption on the video offered the fully automatic pistol for sale. On that evening, officers with the Fort Wayne Police Department attempted a traffic stop on a vehicle driven by Rodriguez-Solorio. Rodriguez-Solorio led police on a high-speed pursuit before eventually crashing and being apprehended. He later admitted to police that he possessed the fully automatic Glock pistol with multiple extended magazines. Police recovered the machine gun, magazines and a small amount of marijuana from a home in Fort Wayne. Rodriguez-Solorio is not a citizen of the United States and had previously been deported to Mexico after he was convicted of felony burglary of a dwelling in 2017.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department with assistance from the Indiana State Police and the Auburn Police Department. This case was prosecuted by Assistant United States Attorney Sarah E. Nokes.
Former Unlicensed Investment Adviser Behind Ponzi Scheme Sentenced to Nine Years for Defrauding Clients out of More than $2 MillionRead the Press Release
PHILADELPHIA – – Acting United States Attorney Jennifer Arbittier Williams announced that Alexander S. Rowland, 30, formerly of Penns Grove, NJ, was sentenced to nine years in prison, three years of supervised release, and was ordered to pay more than $2.1 million restitution to his victims by United States District Court Judge Karen Spencer Marston, for defrauding more than 120 clients who thought they were investing money with Rowland’s company, Roaring Investments, Inc., when in reality, Rowland was operating a Ponzi scheme and spent more than $1 million of their money on himself. The defendant was also ordered to forfeit more than $1.4 million in criminal proceeds that he earned, as well as nine firearms that he purchased with fraud proceeds.
Rowland pleaded guilty in April 2021 to four counts of mail fraud, 16 counts of wire fraud, one count of bank fraud, one count of securities fraud, and one count of investment adviser fraud. As part of his guilty plea, the defendant admitted that he started Roaring Investments in July 2016 and falsely held himself out to potential investors as a licensed investment adviser who would invest their money in stocks and cryptocurrency, and he promised his clients a minimum return of 25% with potential returns of 50% or higher. None of these statements were true. Through these and other misrepresentations, Rowland was able to convince investors to invest almost $3 million in Roaring Investments. Rowland admitted that he actually only invested a little over $500,000 of the funds he obtained from his clients, and that his investments were a flop, losing more than $100,000. Rowland admitted that he spent more than $1 million of his client’s funds on himself, including payments for vacations and luxury vehicles, jewelry, and more than $47,000 worth of firearms. The defendant further admitted that he used some of the other client funds to pay his office rent, his employee salaries, and to make payments to his earlier clients – in effect, operating a Ponzi scheme.
Rowland also admitted that he lied to his clients by providing them with false account balances that led them to believe that their investments were highly profitable. In fact, Rowland led his clients to believe that the roughly $3 million they had collectively invested had grown to more than $9 million. When the scheme collapsed, Rowland’s clients learned that they had actually collectively lost more than $2 million due to Rowland’s fraud. The defendant further admitted that, after the scheme collapsed, he continued to lie to some of his victims by saying he could not repay them because the FBI was preventing him from accessing his accounts.
“Rowland talked a big game about the returns his company could produce through investments in stock and cryptocurrency, but it was all a lie. Instead, he funded his own lavish lifestyle in a manner no better than a common thief,” said Acting U.S. Attorney Williams. “And when he was caught, he continued to lie. The defendant is clearly a determined fraudster who needed to be taken off the street.”
“Alexander Rowland lured investors in by promising astronomical returns on their money,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “Instead, he took full advantage of their trust and lived high on the hog at their expense. Ponzi schemes can be simply devastating for their victims. That's why the FBI and our law enforcement partners are so determined to bring this kind of financial fraud to light, and perpetrators like Rowland to justice.”
“Anytime a taxpayer is encouraged to invest in a product that seems too good to be true, they should be wary,” said Joleen D. Simpson, Acting Special Agent in Charge of the Philadelphia Field Office. “IRS Criminal investigators will continue to use their financial skills to assist their law enforcement partners in stopping harmful investor fraud schemes.”
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division, and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
Former New Port Richey Resident Sentenced to More Than Five Years in Connection with Consumer Fraud SchemesRead the Press Release
Tampa, Florida – U.S. District Judge Virginia Hernandez Covington has sentenced Lori Owen, a/k/a Lori Corrigan (50, Holiday), to five years and three months in federal prison for conspiracy to commit bank, wire, and mail fraud. As part of her sentence, the Court also ordered restitution to the identified victims in the amount of $620,103, and entered a money judgment of $265,964, representing the proceeds of the fraud.
Owen had pleaded guilty on April 19, 2021.
According to court documents, Owen was charged in December 2019 for her involvement in a telemarketing scam—primarily tax impersonation fraud—that operated from approximately December 2014 through the end of 2016, and which defrauded more than $1.38 million from victims around the United States. The conspirators, some of whom were located overseas, extorted money from victims by falsely representing to the victims that they had financial obligations to the Internal Revenue Service, Canadian tax authorities, or other entities. The conspirators then threatened the victims with arrest, prosecution, or other legal consequences for their purported debts and demanded that they pay the conspirators the “owed” money.
Owen worked with others—including her ex-husband, David Owen, and her son, Andrew Corrigan—to collect the fraud proceeds on behalf of the overseas call centers. They collected the proceeds in a variety of ways, including: opening bank accounts into which victims made cash deposits; receiving wire transfers directly from the conspirators; processing prepaid debit cards that the victims purchased through merchant accounts that Lori Owen opened and controlled; and receiving cashier’s checks purchased by the victims. The conspirators monitored the victims’ payments to ensure that the payments were recovered quickly, before any victim or law enforcement officer could become aware of the fraud and attempt to stop the transaction.
David Owen and Andrew Corrigan were previously charged and convicted of similar offenses for their roles in this scheme. Owen was sentenced to 10 years and 10 months in federal prison and Corrigan was sentenced to 10 years in federal prison.
“Impersonating the IRS, the Canadian Revenue Agency, or any other financial institutions to attempt to fraudulently collect a debt is deplorable because it shakes the confidence taxpayers have in these institutions,” said Brian Payne, IRS-CI Special Agent in Charge. “The lengthy sentencings of all the defendants in this investigation reflect the seriousness of the charges and should stand as a clear warning of the consequences that await those engaged in these scams.”
The cases were investigated by the Internal Revenue Service – Criminal Investigation, the Treasury Inspector General for Tax Administration (TIGTA), the FBI, the U.S. Postal Inspection Service, the Pinellas County Sheriff’s Office, the Pasco Sheriff’s Office, the Largo Police Department, the Gulfport Police Department, the Toronto Police Service, and the Royal Canadian Mounted Police, as part of the Middle District of Florida’s Transnational Elder Fraud Strike Force. The cases were prosecuted by Assistant United States Attorneys Rachel Jones, Kelley Howard-Allen, Frank Murray, and David Chee.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. Together with our federal, state, local and tribal partners, the Department of Justice is steadfastly committed to combatting all forms of elder abuse and financial exploitation through enforcement actions, training and resources, research, victim services, and public awareness.
Former Erie Man Gets 23 Years in Prison for Producing Sexually Exploitive Videos and Photos of ChildrenRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to 23 years in jail and 15 years supervised release on his conviction of violating federal laws relating to the sexual exploitation of children, Acting United States Attorney Stephen R. Kaufman announced today.
Senior United States District Judge David S. Cercone imposed the sentence on Joshua Davis Loucks, 37.
According to information presented to the court, Loucks took sexually explicit photos and produced videos of a minor victim who was ten years of age. He also received computer images depicting minors engaging in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Prior to imposing sentence, Judge Cercone noted the extreme depravity of Loucks’ conduct along with Loucks’ lengthy and serious criminal history.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the Federal Bureau of Investigation, the Pennsylvania State Police and the Erie Police Department for the investigation leading to the successful prosecution of Loucks.
Former Corrections Officer Pleads Guilty for Role in Bribery Conspiracy Involving Contraband Cellphones Smuggled into the Indiana County JailRead the Press Release
PITTSBURGH, PA - A former resident of Home, Pennsylvania, pleaded guilty to conspiracy and bribery of a public official, Acting United States Attorney Stephen R. Kaufman announced today.
Alex Lewis, 26, entered guilty pleas today before United States District Judge Cathy Bissoon.
On November 13, 2020, a federal grand jury returned a five-count Indictment against Lewis, a former corrections officer at the Indiana County Jail (ICJ), and Rashon Richardson, a federal detainee housed at ICJ pursuant to a contract with the United States Marshals Service. During his plea hearing today, Lewis admitted that between June and August 2019, he accepted multiple bribes from Richardson. As part of the conspiracy, Lewis admitted that Richardson used an intermediary outside ICJ to meet with him and pay bribes in the form of cash and, on one occasion, via a $400 payment to Lewis’s Cash App account. In return for the bribe payments, Lewis admitted smuggling multiple contraband cellphones into ICJ for use by Richardson and other federal detainees housed at the facility.
“As a corrections officer, Mr. Lewis accepted bribes to facilitate the smuggling of cell phones into the Indiana County Jail,” said Acting U.S. Attorney Kaufman. “His corrupt actions demonstrated his complete lack of integrity and compromised the security of the facility where he worked. This office will continue to investigate and prosecute public officials who pursue self-enrichment at the expense of their solemn duty to protect the community.”
“Mr. Lewis abused his position as a corrections officer to line his own pocket,” said FBI Pittsburgh Special Agent in Charge Mike Nordwall. “By his actions today, he admits to failing to act with integrity. The FBI is committed to making sure those who violate the public’s trust are held accountable.”
The law provides for a maximum sentence of not more than five (5) years in prison for the conspiracy charge, fifteen (15) years for the bribery charge, and a fine of not more than $250,000 per count. 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.
Richardson has pleaded not guilty, and his case remains pending before Judge Bissoon. A defendant is presumed innocent unless and until proven guilty.
Assistant United States Attorney Eric G. Olshan is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case. The Pennsylvania State Police and Indiana County Jail also provided assistance during the course of the investigation.
Former CEO and CFO of Public Telecommunications Company Charged in Manhattan Federal Court with Scheme to Defraud InvestorsRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment in Manhattan federal court charging MICHAEL PALLESCHI, the former Chief Executive Officer of FTE Networks, Inc. (“FTE”), and DAVID LETHEM, the former Chief Financial Officer of FTE, with conspiracy, securities fraud, and wire fraud, improperly influencing the conduct of an audit and aggravated identity theft. These charges stem from the defendants’ years-long scheme to inflate FTE’s revenue, to conceal liabilities and expenses, and to embezzle company funds. PALLESCHI was arrested this morning in the Northern District of New York and will be presented today in that district. LETHEM was arrested this morning in the Middle District of Florida and will be presented today in that district.
U.S. Attorney Audrey Strauss said: “When corporate executives sell their company’s stock to the public, they assume the responsibility under federal law of making full and accurate disclosures about their company’s financial condition to investors. Palleschi and Lethem instead chose to lie about FTE’s finances to make the company appear more financially healthy than it was, thus defrauding FTE’s stockholders and lenders. Instead of forthrightness with their investors, Palleschi and Lethem chose the easy way to cash in by obfuscating FTE’s true financial health through fake documents and forged signatures. This Office is committed to ensuring the integrity of our capital markets through vigorous enforcement of federal securities laws.”
FBI Assistant Director William F. Sweeney Jr. said: “Concealing a company’s true financials from investors is not only an unscrupulous business practice, but in the case of Palleschi and Lethem, as we allege today, it amounted to a federal crime. Financial fraud schemes are all too common, and in order to maintain investor confidence, we need to hold accountable those who perpetrate them.”
According to the Indictment unsealed today in Manhattan federal court:[1]
FTE was a telecommunications company based in Naples, Florida and Manhattan. As of December 2017, its stock traded on the NYSE American market. From 2014 to 2019, PALLESCHI was the chairman of FTE’s Board of Directors and its Chief Executive Officer. LETHEM served as FTE’s Chief Financial Officer from 2014 through 2019.
Fraud with Respect to Convertible Notes
From 2016 to early 2019, PALLESCHI and LETHEM caused FTE to issue approximately 70 notes with a total principal balance of more than $22 million to private lenders that the lenders could convert to FTE’s common stock, either upon demand or upon default. Issuers of such convertible notes must recognize on their financial statements liabilities and expenses that arise from the notes’ conversion features. PALLESCHI and LETHEM caused FTE to recognize only the principal amounts and resulting interest expense on the company’s books but not the substantial liabilities and expenses arising from the notes’ conversion features.
In furtherance of the scheme, PALLESCHI and LETHEM took several steps to conceal the notes’ conversion features:
Rather than provide FTE’s accountants and auditors with copies of the actual convertible notes, the defendants created fake notes with the same lenders, principal amounts and other terms as the convertible notes and gave the fake notes to the auditors and accountants. PALLESCHI and LETHEM created more than 35 such fake notes with a total principal balance of more than $14 million.
PALLESCHI and LETHEM also created fake resolutions of FTE’s Board of Directors that purportedly authorized the company to issue the convertible notes on which they forged the Directors’ signatures. The defendants then provided these forged Board resolutions to FTE’s lenders.
On four occasions in June 2017, LETHEM forged the signature of a representative of FTE’s transfer agent on letters that he provided to lenders. The transfer agent kept records of who owned FTE’s stock and held stock shares that the company had not yet issued. The forged letters purported to confirm that the transfer agent would hold a sufficient number of shares of FTE’s stock in reserve to pay a convertible lender in case the lender decided to convert a convertible note into FTE stock. These letters protected convertible lenders by ensuring that enough shares of FTE’s stock would be available to pay off the convertible notes. Convertible lenders generally required their borrowers to provide them with such letters before funding a convertible note.
PALLESCHI and LETHEM lied repeatedly to FTE’s auditors by falsely denying that the company had issued convertible debt. In April 2018, LETHEM falsely denied to the auditors that FTE had issued two specific convertible notes. Three days later, both PALLESCHI and LETHEM repeated this false denial to the auditors in a management representation letter related to the audit of FTE’s 2017 year end financial statements. PALLESCHI and LETHEM also falsely denied to the auditors in April 2018 and again in November 2018 that a $1.4 million note FTE had entered into in April 2018 was convertible. When the auditors asked to see a copy of the $1.4 million note, LETHEM falsely claimed that his sole electronic copy of the note was lost because the electronic file had become corrupted. When the auditors continued to ask for the note, LETHEM concealed that he had the note all along by sending the note to a company attorney and arranged for the attorney to send it back to him. LETHEM then forwarded the attorney’s email to a company Director, who forwarded it to the auditors with the notation that “[the attorney] found the note!” When the auditors then asked that the attorney review her files for other notes, LETHEM and the attorney falsely responded that the attorney did not know of, or possess, additional convertible notes.
As a result of this fraud with respect to convertible notes, the defendants caused FTE to understate its debt derivative liabilities and warrant derivative liabilities and to fail to recognize losses on conversion derivative liabilities and losses on issuance of notes in 2017 and 2018. For example, FTE’s year end 2017 financial statements understated FTE’s debt derivative liabilities by $48 million and warrant derivative liabilities by $16 million. FTE also failed to recognize a $35 million loss on conversion derivative liabilities and a $42 million loss on issuance of notes for the year ending 2017.
Fraudulent Revenue Recognition
PALLESCHI and LETHEM also caused FTE to recognize more than $13 million in fraudulent revenue:
This fraudulent revenue included more than $10 million in “unbilled” revenue that the defendants represented FTE had earned from services it had supposedly provided to a large customer that would not yet accept bills for those services. FTE never provided any such services.
In addition, the defendants caused FTE to recognize approximately $2.6 million as an account receivable for which there was no support. When FTE’s auditors said that the account receivable should be written off, PALLESCHI and LETHEM created a fake email from a representative of the customer saying that the customer would “expedite payments” for more than $1.5 million for projects completed by FTE in 2016 and 2017. The defendants caused this fake email to be sent to FTE’s auditors so that FTE could continue to recognize the receivable.
PALLESCHI and LETHEM caused FTE to recognize another $600,000 in accounts receivable for work the defendants falsely claimed FTE performed. When FTE’s auditor sought confirmation of this account receivable from the customer, LETHEM gave the auditor the name and email address of an FTE director who also was an employee of the customer. PALLESCHI and LETHEM then attempted to persuade the FTE director to sign the confirmation but the director refused to do so. LETHEM then emailed PALLESCHI in part “should I just send plan b?” Later that day, LETHEM emailed PALLESCHI an audit confirmation containing the director’s forged signature. A few days later, LETHEM emailed the auditor a confirmation containing the director’s forged signature.
As a result of the defendants’ fraudulent recognition of revenue, FTE’s financial statements overstated the company’s accounts receivable by between 18% and 120% for each of the quarters in 2017 and 2018 and by approximately 477% for 2016.
Embezzlement of Corporate Funds
PALLESCHI and LETHEM also embezzled corporate funds. This embezzlement included payments for private jet use, luxury automobiles, personal credit cards, unauthorized wire transfers and stock issuances. PALLESCHI and LETHEM used a bank account in the name of another entity to hide their diversion of corporate funds.
PALLESCHI, 46, of Naples, Florida; and LETHEM, 62, of Ft. Myers, Florida, are charged with 1) conspiring to commit securities fraud, wire fraud, making false statements in SEC filings and improperly influencing the conduct of audits, which carries a maximum sentence of 5 years in prison; 2) securities fraud, which carries a maximum sentence of 20 years in prison; 3) wire fraud, which carries a maximum sentence of 20 years in prison; 4) improperly influencing the conduct of audits, which carries a maximum sentence of 20 years in prison; and 5) aggravated identity theft, which carries a mandatory minimum term of 2 years in prison. The maximum potential sentences in this case are prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
* * *
Ms. Strauss praised the investigative work of the FBI. Ms. Strauss further thanked the U.S. Securities and Exchange Commission, which today filed a parallel civil action.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Elisha Kobre, James McMahon and Negar Tekeei are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Former Banker Sentenced to Prison for Role in Movie Financing Fraud Scheme, Falsely Applying for COVID-19 LoansRead the Press Release
Miami, Florida – A former South Florida banker was sentenced this week to 42 months’ imprisonment for participating in two frauds: the first, a scheme to steal over $60 million from investors and producers seeking financing for movies and Broadway shows; the second, concealing his criminal history on applications for COVID-19 relief loans.
Benjamin Rafael, 31, of South Florida, previously admitted his role in legitimizing a sophisticated movie financing fraud scheme. Rafael pled guilty to one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349 (Case No. 19-CR-20447).
According to court records, Rafael’s co-defendants, Benjamin McConley and Jason Van Eman, held themselves out as film producers and financiers. In those roles, McConley and Van Eman allegedly offered to provide financing to investors and producers seeking funds to produce motion pictures, theater performances, and for other projects. The indictment charges that McConley and Van Eman promised the victims that, in exchange for the victims’ cash contributions, McConley would “match” the contributions and use the combined funds to secure financing from financial institutions in South Florida and elsewhere.
In furtherance of the scheme, McConley and Van Eman recruited Rafael, a then bank employee, to deceive victims about the security of their funds, it is alleged. During the course of the scheme, McConley and Van Eman repeatedly directed Rafael to falsely assure victims that their contributions or loans had been “matched” as promised in the funding agreements, say the court documents.
According to the indictment, victims sent tens of millions of dollars to accounts controlled by the defendants based on these false representations and promises. In truth, the schemers never “matched” the victims’ contributions as promised in the funding agreements. Instead, they stole the victims’ money by transferring the funds to their personal and corporate bank accounts, often within days of the victims’ contributions or loans, according to the court documents.
Following his indictment and guilty plea in Case No. 19-CR-20447, Rafael submitted several applications to various banks for Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL). In those applications, he concealed the fact that he had previously pled guilty in Case No. 19-CR-20447.
As a result of these fraudulent PPP and EIDL applications, Rafael was charged with making false statements to a financial institution, in violation of Title 18, United States Code, Section 1014 (Case No. 21-CR-20161). Rafael pled guilty to the PPP fraud earlier this week. At the same court appearance, Rafael was sentenced for his conduct in both cases during a consolidated sentencing proceeding.
In addition to the combined sentence of 42 months’ imprisonment, Rafael was ordered to pay restitution to the victims, forfeit money and real estate traceable to the fraud schemes, and serve a term of supervised release of five years.
Co-defendant Benjamin McConley previously pled guilty in Case No. 19-CR-20447 to one count of conspiracy to commit wire fraud and is scheduled to be sentenced on September 14, 2021, at 9:00 a.m. by District Judge Raag Singhal. Co-defendant Jason Van Eman is scheduled for trial on August 30, 2021.
Juan Antonio Gonzalez, Acting U.S. Attorney for the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, and Special Agent in Charge Amaleka McCall-Brathwaite of the U.S. Small Business Administration, Office of Inspector General (SBA-OIG), Investigations Division, Eastern Regional Office, made the announcement.
FBI Miami and SBA-OIG investigated the matters. The 2019 case is being prosecuted by Assistant U.S. Attorneys Christopher Browne and Elizabeth Young. The 2021 case was prosecuted by Assistant U.S. Attorney Lacee Monk. Assistant U.S. Attorney Marx Calderon is responsible for the asset forfeiture component of both cases.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in forgivable loans to small businesses for job retention and certain other expenses, through the PPP.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
The EIDL program is designed to provide economic relief to small businesses that are currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities and fixed debt payments. If an applicant also obtains a loan under the PPP, the EIDL funds cannot be used as the same purpose as the PPP funds.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
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Fleming County Magistrate Sentenced to 66 Months for Crop Insurance Fraud and Tax FraudRead the Press Release
FRANKFORT, Ky. – Christopher G. Hickerson, 47, a Fleming County Magistrate and farmer, was sentenced to 66 months in federal prison Wednesday, by U.S. District Judge Gregory Van Tatenhove, for conspiracy to commit crop insurance fraud and tax fraud.
The evidence presented established that, from 2009 until 2016, Hickerson filed false claims of loss on his Multi-Peril Crop Insurance (“MPCI”) policies. MPCI policies are federally sponsored crop insurance policies, which are funded through taxpayer money. In his plea agreement, Hickerson admitted to committing crop insurance fraud with the assistance of coconspirators Roger Wilson, former owner of Clay’s Tobacco Warehouse, and Debra Muse, former employee at Clay’s Tobacco Warehouse, by obtaining fake Clay’s Tobacco Warehouse sales receipts and grading reports that made it appear as though he produced and sold poor quality tobacco, and then submitting those on his claims of loss. Testimony during a sentencing hearing revealed that Hickerson employed other schemes to defraud the federal crop insurance program, including by placing crop insurance policies in his family member and friends’ names covering his own crop. As a result, Hickerson fraudulently caused a loss of nearly $1 million to the taxpayer-funded insurance program.
Hickerson further admitted that he underreported his crop sales income in 2012, 2013, and 2015. This caused a second loss to the federal government – this time to the IRS – of more than $150,000 in unpaid taxes.
Under federal law, Hickerson must serve 85 percent of his sentence. Upon his release from prison, he will be under the supervision of the United States Probation Office for a period of three years. Hickerson must also pay restitution that will be determined later by the Court.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky;
Jason M. Williams, Acting Special Agent in Charge, United States Department of Agriculture Office of Inspector General; Edward J. Gray, Acting Special Agent in Charge, FBI, Louisville Field Division; Bryant Jackson, Special Agent in Charge, Internal Revenue Service-Criminal Investigation; and Juan Garrett, Director, Kentucky Department of Insurance, Fraud Investigation Division, jointly announced the sentence.
The investigation was conducted by the USDA, FBI, IRS, and the Kentucky Department of Insurance. The United States was represented by Assistant U.S. Attorneys Kathryn Anderson and Erin Roth.
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Felon Sentenced to over Four Years in Prison for Unlawfully Possessing a Gun and Leading Police on a Car ChaseRead the Press Release
A convicted felon who unlawfully possessed a gun and led the police on a car chase was sentenced today to more than four years in federal prison.
Dennis Lawson, age 23, from Sioux City, Iowa, received the prison term after a December 23, 2020 guilty plea to one count of being felon in possession of a firearm.
Evidence at the plea and sentencing hearings showed that, on February 23, 2020, Lawson was the driver of a car parked in a parking lot in Cedar Rapids. A woman was in the car with him. Both were seen using a needle to ingest drugs. Officers approached Lawson’s car and he took off out of the parking lot. Officers chased Lawson, who eventually crashed his car into two trees. During the chase, Lawson forced his passenger to throw a gun out the window, which officers immediately recovered. After the crash, Lawson tried to run, but slipped and fell.
Lawson has multiple prior felony convictions, including a conviction for burglary and two prior convictions in state court for being a felon in possession of a firearm.
Additional evidence showed that, on May 16, 2021, Lawson was incarcerated in the Bremer County jail while awaiting sentencing. On that day, Lawson used a sock with a bar of soap in it to assault another inmate. Lawson also insulted and shoved a jail employee who was attempting to stop the assault. As a result of this conduct, Lawson lost credit for accepting responsibility and received an increased sentence.
Lawson was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Lawson was sentenced to 51 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
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.
Lawson 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 Anthony Morfitt and investigated by the Cedar Rapids Police Department and the Cedar Rapids Safe Streets Task Force. The task force is composed of representatives from the Federal Bureau of Investigation, the Marion Police Department, and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-63.
Follow us on Twitter @USAO_NDIA.
Federal Jury Convicts Man of Sexually Abusing a Minor Aboard Flight to MinneapolisRead the Press Release
MINNEAPOLIS – A federal jury convicted a Minneapolis man for engaging in abusive sexual contact on an airplane, announced Acting U.S. Attorney W. Anders Folk.
Following a three-day trial before Judge Nancy E. Brasel, Neeraj Chopra, 40, was convicted on one count of abusive sexual contact.
According to the evidence presented at trial, in April 2019, Chopra knowingly engaged in abusive sexual contact with a 16-year-old victim who was seated next to him aboard a Jet Blue flight from Boston to Minneapolis. During the flight, Chopra retrieved a blanket from his backpack and draped it over his lap, with a portion of the blanket also covering the victim’s right leg. Chopra put his hand under the blanket and began inappropriately touching the victim. Chopra ignored the victim’s multiple requests to stop and continued to inappropriately touch the victim.
Chopra faces up to two years in prison and a fine up to $250,000. At sentencing, a federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. A sentencing date has yet to be scheduled.
This case was the result of an investigation conducted by the Federal Bureau of Investigation, with assistance from the Minneapolis-St. Paul Airport Police.
This case was tried by Assistant U.S. Attorneys Lauren O. Roso and Michelle E. Jones.
Federal Jury Convicts California Man of Methamphetamine, Heroin Trafficking ConspiracyRead the Press Release
ST. PAUL, Minn. – A federal jury convicted a California man for participating in a methamphetamine and heroin trafficking conspiracy, announced Acting U.S. Attorney W. Anders Folk.
Following a three-day trial before Judge Eric C. Tostrud, Joel Llamas Garcia, 49, was convicted of a single count of conspiracy to distribute methamphetamine and heroin.
According to the evidence presented at trial, on September 21, 2020, law enforcement received information that three California men, Garcia and two co-conspirators, had traveled to Minnesota for a narcotics transaction and were staying at a motel in Maplewood, Minnesota. Since arriving in Minnesota, the men had taken possession of the narcotics and arranged for another individual, who turned out to be an undercover law enforcement officer, to take possession of the narcotics for safekeeping. Later that same day, the undercover officer arrived at the motel and received from Garcia a duffel bag containing 19.46 pounds of methamphetamine that was divided into 20 small plastic containers, and six bricks of heroin that weighed a total of 13.11 pounds.
The following day, law enforcement officers executed a search warrant on the motel room and the vehicle Garcia and his co-conspirators drove from California. Officers arrested Garcia and found .277 grams of methamphetamine on his person.
Garcia faces up to life in prison. At sentencing, a federal district court judge will determine the sentence accounting for the U.S. Sentencing Guidelines and other statutory factors. A sentencing date has yet to be scheduled.
This case was the result of an investigation conducted by the Drug Enforcement Administration (DEA), the Minnesota Bureau of Criminal Apprehension, IRS-CI, Minneapolis-St. Paul Airport Police Department, Minnesota State Patrol and the Ramsey County Sherriff’s Office.
This case was tried by Assistant U.S. Attorneys LeeAnn K. Bell and Jordan L. Sing.
Federal Drug and Gun Charges Brought Against Fresno Man Accused of Dealing FentanylRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Andres Nunez, 23, of Fresno, charging him with distribution of fentanyl to a person under 21 years old and possession of a firearm in furtherance of a drug trafficking crime, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Feb. 9, 2021, Nunez delivered a substance containing fentanyl to a person under 21 years of age. In June 2021, agents executed a search warrant at Nunez’s residence. In his bedroom, they found approximately 13 firearms, including a “ghost gun,” a Glock-style handgun with no serial number. Attached to the gun was an “auto-sear,” a device that attaches to a firearm enabling it function as a machine gun. Agents also found two additional “auto-sears,” a digital scale, packaging materials, a vacuum sealer, and four clear plastic bags, each containing approximately 1 pound of processed marijuana.
This case is the product of an investigation by the Fentanyl Overdose Resolution Team, a multi‑agency team composed of Homeland Security Investigations, the Drug Enforcement Administration, and the Fresno Police Department. Assistant U.S. Attorney Justin J. Gilio is prosecuting the case.
If convicted, Nunez faces a maximum statutory penalty of life in prison and a $2 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Operation Synthetic Opioid Surge (S.O.S.) a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Fall River Man Sentenced for Conspiracy to Distribute CocaineRead the Press Release
BOSTON – A Fall River man was sentenced today in connection with a cocaine distribution conspiracy.
Alexander Santiago Medina, a/k/a “Flaco,” 33, was sentenced by U.S. Senior District Court Judge Douglas L. Woodlock to five years in prison and four years of supervised release. On March 9, 2021, Santiago Medina pleaded guilty to one count of conspiring to distribute and to possess with intent to distribute 500 grams or more of cocaine.
From at least February 2019 through December 2019, Santiago Medina was involved in a cocaine distribution conspiracy. Investigators intercepted a number of communications between Santiago Medina and co-conspirators in furtherance of the conspiracy, including communications on June 17, 2019, in which Santiago Medina and various co-conspirators agreed to distribute two kilograms of cocaine or more. Later that day, investigators seized approximately two kilograms of cocaine from one of Santiago Medina’s co-conspirators. After Santiago Medina was arrested on Dec. 5, 2019, investigators searched a storage unit used by Santiago Medina and found a firearm and approximately 40 grams of a mixture and substance containing fentanyl.
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 United States Postal Inspector 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.
Exotic Cat Keeper Sentenced for Gun CrimeRead the Press Release
A Canadian national who overstayed his visa to work as a keeper of exotic cats has been sentenced to 28 months in federal prison for a gun crime, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Following two days of trial, in March, a federal jury convicted Paul Michael Malagerio, 65, of unlawful alien in possession of firearms. He was sentenced today by U.S. District Judge James Wesley Hendrix.
At trial, agents testified that they arrested Mr. Malagerio based on an administrative warrant for visa overstay at the Whitley Acres Exotic Ranch in Levelland, Texas in November 2020. Inside his RV, they found an AR-15, a shotgun, and a 9 mm pistol. Mr. Malagerio also had a mountain lion on the property.
(Mr. Malagerio’s unlawful presence in the country prevented him from possessing firearms.)
In jailhouse phone calls, Mr. Malagerio indicated that he knew he was in the United States illegally: “So I’m guilty of it, but can we plead where I can go and pack my stuff, my animals… and leave with my tail between my legs?” he asked. [Audio available to credentialed media upon request.]
During a court proceeding in February, Mr. Malagerio testified that he worked for James Garretson, the exotic cat enthusiast turned FBI informant featured in Netflix's “Tiger King.”
In another jailhouse call, Mr. Malagerio claimed that Mr. Garretson had reported him to immigration authorities, telling a friend, “see, James [Garretson] is the only one that knows where I am and he threatened to do this about a month ago.”
Homeland Security Investigations, Immigration & Customs Enforcement’s Enforcement and Removal Operations, and the Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division conducted the investigation with the assistance of the Texas Game Wardens. Assistant U.S. Attorneys Ryan Redd and Jeffrey Haag prosecuted the case.
Enforcer of Violent Narcotics Trafficking Organization Sentenced to 35 Years in Prison for His Role in 7 MurdersRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced today that JASON DONES-GONZALEZ, an enforcer for La Organización de Narcotraficantes Unidos (“La ONU”), was sentenced by U.S. District Judge Jesse M. Furman to 35 years in prison. DONES-GONZALEZ previously pled guilty to participating in a racketeering conspiracy, participating in a conspiracy to commit murder, and unlawfully possessing a machine gun.
U.S. Attorney Audrey Strauss said: “Jason Dones-Gonzalez was a ruthless murderer who carried out numerous acts of wanton and depraved violence as an enforcer for La ONU. As just one example, Dones-Gonzalez and an accomplice beat a man until he appeared to be dead, but just to be sure, he and the accomplice stuffed the victim’s body into a suitcase, transported it elsewhere, shot it, and lit it on fire. This degree of cold-blooded indifference to – indeed, apparent pleasure at – taking another human life merits a firm reckoning. Today Jason Dones-Gonzalez was rightly sentenced to 35 years in prison for his horrific crimes.”
According to the Indictment, other filings in this case, and statements during court proceedings:
From at least in or about 2004 until 2016, DONES-GONZALEZ was a member and enforcer of La ONU, a criminal enterprise involved in shipping thousands of kilograms of cocaine from Puerto Rico to New York. Cocaine supplied by La ONU was then distributed in New York City, including out of a daycare center in the Bronx, New York. Members and associates of La ONU also engaged in acts of violence, including murder, to protect and expand the enterprise’s criminal operations and in connection with rivalries with other criminal organizations. In particular, members of the enterprise were ordered to shoot and kill suspected rival drug trafficking members.
As an enforcer for La ONU, DONES-GONZALEZ participated in the murder of at least seven people between approximately 2006 and 2010. Those murders involved heinous and brazen acts of violence, including, for example, kidnapping and killing individuals, strangling two individuals believed to be spies, interrogating them for information, and then shooting them, choking and shooting an individual believed to be cooperating with law enforcement, and assaulting an individual, placing that individual’s body in a suitcase, and shooting and lighting the suitcase on fire. Specifically:
In approximately 2006 or 2007, members of La ONU kidnapped and killed Freddy Mendez-Rivera after learning from corrupt law enforcement officers working for La ONU that Mendez-Rivera had complained to law enforcement about drug dealing occurring in his neighborhood. DONES-GONZALEZ and two other individuals put Mendez-Rivera into a van and killed him.
In 2007, DONES-GONZALEZ and three other individuals strangled two men alleged to be spies with twisted-up t-shirts while interrogating them for information. DONES-GONZALEZ and the others then shot the men, one of whom died.
In approximately 2008 or 2009, DONES-GONZALEZ and four other individuals dressed up as police officers and kidnapped an individual known as “Gabi,” a leader of a rival drug trafficking organization, from his home and killed him.
In 2009, DONES-GONZALEZ and another individual killed an individual known as “Sacca Grippe,” because they thought that he was cooperating with law enforcement. They choked and shot him.
On March 20, 2009, DONES-GONZALEZ and other members of La ONU murdered Carlos Barbosa on the orders of a leader of La ONU because Barbosa was threatening to take control of certain drug territory from that leader. DONES-GONZALEZ used a FN pistol, which is designed to fire multiple rounds upon a single pull of the trigger, and which fires ammunition that can penetrate body armor.
On November 27, 2009, DONES-GONZALEZ and other La ONU members assaulted Emanuel Correa Romero until he appeared dead. The leadership of a local housing project gang, after consulting with other leaders of La ONU, had decided that Correa Romero should be killed because he had murdered the friend of a leader of a component of La ONU. After the assault, DONES-GONZALEZ and another individual placed Correa Romero’s body into a suitcase, removed it from the housing project, and later reported back that they shot the suitcase and then lit it on fire.
On July 1, 2010, a leader of La ONU ordered the murder of Victor Alexis Rivera Santiago, a reggaeton singer who participated in narcotics trafficking, for stealing a kilogram of cocaine from the son of the leader’s friend and killing the son in the process. DONES-GONZALEZ and others tied Rivera Santiago up in the leader’s presence, transported him to an apartment, questioned him, and killed him.
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In addition to the prison term, Judge Furman sentenced DONES-GONZALEZ, 41, of Puerto Rico, to three years of supervised release.
Ms. Strauss praised the investigative work of the U.S. Postal Inspection Service, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New York City Police Department. Ms. Strauss also thanked the United States Attorney’s Office in the District of Puerto Rico and the Puerto Rico Police Department for their support in this ongoing investigation.
The prosecution is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Lara Pomerantz, Justin Rodriguez, and Andrew Thomas are in charge of the prosecution.
Emanuel County woman sentenced after admitting to defrauding program for COVID-19 small business reliefRead the Press Release
STATESBORO, GA: An Emanuel County woman who admitted creating a fake business and using it to receive funding from a federal COVID-19 small business relief program has been sentenced in federal court.
Tracy Kirkland, 41, of Swainsboro, was sentenced to 33 months in prison after pleading guilty to an Information charging her with Wire Fraud, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. U.S. District Court Chief Judge J. Randal Hal also ordered Kirkland to pay restitution of $66,400, forfeit a 2019 Dodge Charger and $16,250, and serve three years of supervised release after completion of her prison sentence. There is no parole in the federal system.
“Tracy Kirkland has a disturbing history of two decades as a petty thief, and was on state probation when she stepped her crimes up another notch by defrauding the COVID-19 relief program,” said Acting U.S. Attorney Estes. “She is once again being held accountable for her criminal activity.”
As described in court documents and testimony, in August 2020 Kirkland received a federally guaranteed loan for $66,400 under the U.S. Small Business Administration (SBA) Economic Injury Disaster Loan (EIDL) Program comprised of funds appropriated by the CARES Act. In applying for the funding, Kirkland falsely claimed to own “Kirklands Hair N Beauty,” a fictitious business with three employees in Swainsboro, that had suffered economic harm because of the COVID-19 pandemic.
Soon after receiving the SBA loan proceeds into her personal account, Kirkland, a previously convicted felon who was on state probation, used the funds to purchase a 2019 Dodge Charger R/T; made large cash withdrawals from her bank account; and made other non-business-related purchases.
“Lying to gain access to economic stimulus funds will be met with justice,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “Greed has no place in SBA’s programs that are intended to provide assistance to the nation’s small businesses struggling with the pandemic challenges. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
The U.S. Small Business Administration Office of Inspector General investigated the case with assistance from the Swainsboro Police Department and the Bureau of Alcohol, Tobacco, Firearms and Ammunition, with prosecution for the United States by Assistant U.S. Attorneys Steven H. Lee and Asset Recovery Unit Chief Xavier A. Cunningham.
El Departamento de Justicia llega a un acuerdo con una compañía de servicios de reparto que resuelve una acusación de represaliasRead the Press Release
WASHINGTON – El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con Around the Clock Dispatch Inc., una compañía de servicios de flete y reparto en Queens Village, New York. La conciliación resuelve la acusación del Departamento de que Around the Clock vulneró la disposición antidiscriminatoria de la ley de Ley de Inmigración y Nacionalidad («INA», por sus siglas en inglés) al tomar represalias contra un trabajador porque pidió la ayuda del Departamento para abordar sus preocupaciones acerca de una práctica de empleo relacionada con la inmigración.
El Departamento inició su investigación después de que el trabajador presentó una denuncia y determinó que Around the Clock suspendió al trabajador por tres días sin sueldo porque él había llamado a la Sección de Derechos Civiles de la Sección de Derechos de Inmigrantes y Empleados («IER», por sus siglas en inglés) para pedir ayuda para abordar una preocupación relacionada con el proceso que la compañía usa para verificar su autorización para trabajar. El programa de líneas directas de la IER ofrece información y ayuda a trabajadores y empleadores para prevenir la discriminación y resolver, de manera informal, posibles controversias laborales relacionadas con la inmigración, en el caso de que un trabajador pida tal intervención. La INA prohíbe la intimidación o la toma de represalias contra individuos que se oponen a lo que ellos creen, razonablemente, que son infracciones de la ley que la IER hace cumplir, incluyendo llamar a la línea directa de la IER. Las personas que presentan una denuncia ante la IER, cooperan con una investigación de la IER o que de otra forma hacen valer sus derechos o los de otras personas también están protegidos al amparo de esta ley.
«Los trabajadores no deben enfrentarse a consecuencias negativas por comentar sus preocupaciones acerca de medidas que podrían constituir una vulneración de la disposición antidiscriminatoria de la ley de Inmigración y Nacionalidad», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «Animamos a los trabajadores y empleadores a comunicarse con la línea directa de la Sección de Derechos de Inmigrantes y Empleados para información sobre sus derechos y responsabilidades, para ayudar a resolver controversias lo más antes posible. La protección de aquellos que se comunican con la línea directa por motivos relacionados con represalias es esencial para garantizar su éxito».
Conforme la conciliación, Around the Clock pagará una sanción civil de 3.600 $ a los Estados Unidos y casi 900 $ por concepto de pagos retroactivos al individuo afectado. Por otra parte, la conciliación requiere que Around the Clock capacite sus empleados en cuanto a los requisitos de la disposición antidiscriminatoria de la INA y que se someta a los requisitos de supervisión y declaración del Departamento.
La IER, una sección que forma parte de la División de Derechos Civiles, es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. La ley prohíbe la discriminación por motivos de estatus migratorio o de ciudadanía o bien por la nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; prácticas documentales injustas y represalias e intimidación.
Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su estatus de ciudadanía o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1‑800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a [email protected]; inscribirse a un seminario en línea gratuito; o visitar los sitios web de la IER en inglés o español. Para recibir las últimas noticias de la IER, inscríbase a GovDelivery.
Drug Trafficker Pleads Guilty to Role in 2011 Reston MurderRead the Press Release
ALEXANDRIA, Va. – A Beltsville, Maryland man and long-time fugitive pleaded guilty today to aiding and abetting a drug-related murder nearly a decade ago.
According to court documents, Saul Pacheco Mejia, 55, arranged to sell cocaine to individuals in Reston on December 12, 2011. On that date, Mejia and two associates arrived at an apartment in Reston in anticipation of the cocaine transaction. Instead of purchasing the cocaine, the intended customer attempted to steal the cocaine and flee. Mejia’s associates chased, shot, and killed the man. Mejia did not have a firearm, but knew the two other individuals did have firearms. Mejia and the others fled to Honduras shortly after the crime. In late 2019, Mejia was located in the United States and arrested in Texas.
Mejia pleaded guilty to aiding and abetting the use of a firearm in furtherance of a drug trafficking conspiracy, causing death. Mejia pleaded guilty to aiding and abetting the use of a firearm in connection with a drug conspiracy resulting in death. Mejia is scheduled to be sentenced on November 10. Under the plea agreement entered today, the parties have agreed that the Court will not sentence the defendant to more than 25 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and David M. Rohrer, Fairfax County Interim Chief of Police and Deputy County Executive for Public Safety, made the announcement after U.S. District Judge Rossie D. Alston, Jr. accepted the plea.
Assistant U.S. Attorney Michael P. Ben’Ary is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-2.
Drug Supplier for D.C. and Prince George’s County Drug Conspiracy—Sentenced to More Than Seven Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Theodore D. Chuang today sentenced Thomas Parker III, a/k/a “June,” age 53, of Washington, D.C., to 90 months in federal prison, followed by three years of supervised release, for his participation in a conspiracy to distribute fentanyl, heroin, and powder and crack cocaine. Eight co-defendants previously pleaded guilty to their roles in the drug conspiracy.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; Chief Malik Azziz of the Prince George’s County Police Department; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration - Washington Division; and Charles County Sheriff Troy Berry.
According to Parker’s guilty plea, from September 2017 to July 2018, Parker and his co-conspirators distributed heroin, fentanyl, and powder and crack cocaine to drug users and distributors in the Maryland and D.C. area. Specifically, Parker supplied heroin and cocaine to co-defendants Arsenio Cleckley (a major narcotics trafficker in Maryland and Washington, D.C), and Diamante Hailey.
As detailed in his plea agreement, on March 9, 2018, Parker and Cleckley spoke over the phone and Parker told Cleckley that he was serving time in a halfway house, but that a co-conspirator could supply drugs to Cleckley until Parker was released. Shortly thereafter, the co-conspirator sold heroin to Cleckley. Cleckley later complained to Parker that the heroin he got from the co-conspirator was diluted too much. On March 12, 2018, Parker arranged to supply Cleckley with 28 grams of heroin and 31 grams of cocaine. The next day, Cleckley told Parker he wanted to purchase “28 plus 10,” which meant he wanted 28 grams of heroin for himself and 10 grams of heroin for one of his associates. During the conversation, Cleckley again complained about the quality of the heroin he had previously obtained from the co-conspirator. Later on March 13, 2018, Cleckley called Hailey and told him that Cleckley had obtained 10 grams of heroin on Hailey’s behalf from Parker.
Parker also admitted that on March 15, 2018, he distributed 28 grams of heroin to Cleckley in exchange for $1,800. Cleckley then contacted Hailey to let him know that Cleckley was going to direct heroin users to Hailey’s location so that the users could purchase heroin from Hailey. Later the same day, Cleckley told Hailey that Cleckley intended to purchase an additional 28 to 30 grams of heroin from Parker that Cleckley could split with Hailey.
Between March 20 and May 25, 2018, Parker and Cleckley continued to negotiate drug transactions, including a conversation where Cleckley asked Parker to lower the price he was charging for a gram of heroin, and conversations in which Parker advised Cleckley that Hailey and Cleckly owed him money. During one such call on May 25, 2018, Cleckley told Parker that he recently “fell in a hole” when one of Cleckley’s distributors, James Belt, was arrested in Accokeek, Maryland on May 18, 2018, with 32.5 grams of crack cocaine.
Co-defendants Arsenio Cleckley, a/k/a Bund, age 32 of Accokeek, Maryland; Diamante Lacelle Hailey, a/k/a Tay, age 27 of Clinton, Maryland; James Belt, a/k/a JB, age 32, of Lanham, Maryland; Alphonso Leroy Anthony Black, a/k/a Kobe, age 25 of Temple Hills, Maryland; Terri Bordeaux, a/k/a CeCe and Auntie, age 50, of Washington, D.C.; Christina Marshall, a/k/a Chrissy, age 32, of Accokeek; Devin Simmons, age 42, of Marbury, Maryland; and William Stewart, a/k/a Lil’ Will, age 24, also of Marbury, all previously pleaded guilty. Simmons, Belt, Hailey, Stewart, and Black were sentenced to between five years in federal prison and time served—approximately 22 months, each followed by three years of supervised release. The remaining defendants are scheduled to be sentenced in the next two months.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Acting United States Attorney Jonathan F. Lenzner commended HSI, the Prince George County Police Department, the DEA, and the Charles County Sheriff’s Office for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Erin B. Pulice and Jennifer L. Wine, who are prosecuting the case.
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DaVita Inc. and Former CEO Indicted in Ongoing Investigation of Labor Market Collusion in Health Care IndustryRead the Press Release
Note: The defendants in this case, DaVita Inc. and Kent Thiry, were acquitted by a jury of the charges alleged in the indictment described in the press release below.
A federal grand jury in Denver returned a two-count indictment charging DaVita Inc. and its former CEO, Kent Thiry, for conspiring with competing employers not to solicit certain employees. DaVita owns and operates outpatient medical care centers across the country, focusing on dialysis and kidney care. These charges are the result of the Antitrust Division’s ongoing investigation into employee allocation agreements in the health care industry. DaVita’s co-conspirator Surgical Care Affiliates LLC and its related entity (collectively SCA) were charged in January, and that case is pending in the Northern District of Texas.
The indictment alleges that DaVita and Thiry both participated in two separate conspiracies to suppress competition for the services of certain employees. Count One charges DaVita and Thiry for conspiring with SCA to allocate senior-level employees by agreeing not to solicit each other’s senior-level employees from as early as February 2012 until as late as July 2017. Count Two charges DaVita and Thiry for conspiring with another health care company from as early as April 2017 until as late as June 2019 to allocate employees by agreeing that the other health care company would not solicit DaVita’s employees.
“Those who conspire to deprive workers of free-market opportunities and mobility are committing serious crimes that we will prosecute to the full extent of the law,” said Acting Assistant Attorney General Richard A. Powers of the Justice Department’s Antitrust Division. “We are grateful for our partnership with the FBI and our shared commitment to rooting out illegal collusion targeting labor markets.”
“These charges show a disturbing pattern of behavior among health care company executives to conspire to limit the opportunities of workers,” said Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office. “The FBI is dedicated to working with our partners to hold those accountable who would engage in labor market collusion to the detriment of their employees.”
DaVita and Thiry are charged with two counts of violating the Sherman Act. The defendants are scheduled for their initial court appearance on July 20 before U.S. Magistrate Judge Kristen L. Mix of the U.S. District Court for the District of Colorado. If convicted, DaVita faces a maximum penalty of a $100 million fine per count, and Thiry faces a maximum penalty of 10 years in prison and a $1 million fine per count. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than the statutory maximum. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Today’s announcement is the result of an ongoing federal investigation being conducted by the Antitrust Division’s Washington Criminal II Section and the Washington Field Office of the FBI.
Anyone with information in connection with this investigation should contact the Antitrust Division’s Complaint Center at 888-647-3258, or visit http://www.justice.gov/atr/report-violations.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
DOJ and Clark County Jail resolve alleged violations of Americans with Disabilities ActRead the Press Release
Seattle – The Clark County Jail in Vancouver, Washington and the U.S. Department of Justice today reached a settlement agreement to ensure equal access to services at the jail for persons who are deaf or hard of hearing. The investigation and settlement resulted from the complaint of a Clark County woman who is deaf and was denied auxiliary aids or services while incarcerated at the jail for two days. The settlement agreement calls for substantial updates to the policies and procedures at the jail. The complainant will be paid $25,000 by the Clark County Jail.
“When a person with communication disabilities has their liberty restrained by incarceration, the ability to effectively communicate is of critical importance. They must be able to provide and receive information about medical care, legal rights, and their basic human needs,” said Acting U.S. Attorney Tessa M. Gorman. “This settlement will help ensure that every person who is deaf or hard of hearing has the ability to effectively communicate and have equal access to services in their encounter with the Clark County corrections system.”
Following earlier lawsuits regarding services for persons who are deaf and hard of hearing, the Clark County Jail obtained assistive devices and services to ensure compliance with the Americans with Disabilities Act (ADA). Nevertheless, over the two days that the complainant, who is deaf, was in custody, the jail failed to provide any of those devices or other interpreter services to the complainant. Instead, during the complainant’s booking into CCJ on December 10, 2019, jail booking staff attempted to communicate using written notes, gestures, and typing on a computer screen. These less effective forms of communication were used during such critical information gathering as taking medical history and informing complainant about her basic rights, rules, and resources at the jail. The assistive devices that were purchased after prior lawsuits were never offered or provided.
The investigation also determined that jail staff are not trained in how to assess an inmate’s communication needs, despite the fact that the jail deals with many detainees who have hearing impairments. Since 2014 there have been multiple lawsuits against the Clark County Jail alleging discrimination against detainees with hearing impairments.
Under the terms of the settlement, within 60 days the jail will provide the U.S. Attorney’s Office with policies to improve effective communication with persons who are deaf and hard of hearing. Such policies will include the appointment of an Effective Communication Coordinator (ECC) who will be responsible for ensuring that the jail meets the requirements of the ADA. The policies will also require jail staff to use a communications assessment tool at the time of booking to ensure an inmate’s needs are met and require staff to take steps to ensure that inmate communication needs are reassessed throughout their incarceration. Under the terms of the settlement, the jail will log all requests for communication assistive devices and how the jail met those requests.
The settlement calls for the Clark County Jail to provide interpreter services in person or via video link for a variety of important interactions including but not limited to: medical appointments; educational classes; classification reviews; and religious services. The jail will also ensure that any emergency alerts at the facility are communicated in an effective visual form for inmates who are deaf and hard of hearing.
Additionally, the jail will prominently display information on assistive services for those who are deaf or hard of hearing. The jail will provide a video orientation with closed captioning for deaf and hard of hearing inmates. Finally, the jail will ensure inmates who are deaf or hard of hearing have access to videophones to communicate with legal counsel or family members.
The settlement also calls for the jail to modify its restraint and handcuffing policy so that inmates who are deaf or hard of hearing can communicate using American Sign Language or in writing by having their hands in front of their bodies, when safety permits.
The U.S. Attorney’s Office will monitor the Clark County Jail’s compliance with the settlement for the next three years. The jail will report to the U.S. Attorney’s Office on training of jail staff, the logs regarding request and use of assistive services and any complaints regarding compliance with the ADA. The reports are due every six months.
The matter is being handled by Assistant United States Attorney Christina Fogg. Ms. Fogg serves as the Civil Rights Coordinator for the U.S. Attorney’s Office, Western District of Washington. Learn more about our civil rights program here.
Columbus man who led online car sales scam sentenced to more than 14 years in prisonRead the Press Release
COLUMBUS, Ohio – The leader of an online car sales scam that cheated hundreds of victims around the country out of more than $10.6 million total was sentenced in federal court today to 170 months in prison.
Terry J. Boutwell, 38, of Columbus, and others, pretended to part of an eBay program in order steal money through fake car sales.
Boutwell pleaded guilty in July 2019 to conspiring to commit money laundering. As part of his sentencing, he is ordered to pay $10,639,225.91 in restitution.
Court documents outline that Boutwell and others operated the scheme from 2015 until October 2018. He and the other co-conspirators were part of a network that attracted online customers through fraudulent postings for vehicle sales.
Defendants communicated with victims through email and phone, posing as employees of eBay, and used third parties to open bank accounts in the names of shell corporations that appeared to be affiliated with eBay. They instructed victims to wire funds to various third-party bank accounts they set up. They claimed to be affiliated with eBay’s Buyer Protection Program, when in fact, no such relationship existed.
Accounts in Boutwell’s control received more than $10.6 million from more than 850 victims around the country.
“Boutwell and his co-conspirators may have been dedicated to carrying out this sophisticated scheme, but our law enforcement partners on all levels throughout the country were just as dedicated to getting justice for the hundreds of victims who lost hard-earned money to this criminal conspiracy,” said Acting U.S. Attorney Vipal J. Patel. “Now, through restitution, we hope to get that money back to them. In the meantime, Boutwell will be serving a lengthy stay in federal prison.”
“This case serves as an unfortunate reminder that scammers will find new and sinister ways to relieve you of your hard-earned dollars,” Patel added. “Any attempt to communicate or make payment outside of an online merchant’s existing system should be met with extreme skepticism and caution.”
Two co-conspirators have also been sentenced in this case. Tiffany A. Strobl, 41, of Columbus, was sentenced to five months in prison and ordered to pay more than $2 million in restitution. Shalitha R. Schexnayder, 41, of Miami, Florida, was sentenced to six months of home confinement as part of five years of federal probation.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; and Bryant Jackson, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, announced the sentence imposed by U.S. District Court Judge Edmund A Sargus, Jr. Assistant United States Attorney Noah Litton is representing the United States in this case.
Acting U.S. Attorney Patel recognized the assistance of United States Secret Service in Toledo, Ohio and Miami, Florida; the FBI’s Baltimore field office; United States Postal Inspection Service in Detroit; New York State Police; the Canton, Ohio, Butler Village, Ohio, Mayfield Heights, Ohio, Bloomfield Township, Michigan, Marlboro Township, New Jersey and Janesville, Wisconsin police departments; and the Walworth County, Wisconsin and Clarke County, Alabama sheriff’s offices.
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Clairton Man Arrested for Violating Federal Drug and Gun Laws following Investigation Led by the Allegheny County Police DepartmentRead the Press Release
PITTSBURGH, Pennsylvania - A resident of Clairton, Pennsylvania, has been arrested in Clairton on charges of violating federal firearm and narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
The criminal complaint named Darryl Craig, 41, of Clairton, Pennsylvania, as the sole defendant. Craig made an initial appearance today in U.S. District Court. A preliminary examination and detention hearing are scheduled for Monday, July 19, 2021, at 11:30 a.m. before Chief U.S. Magistrate Judge Cynthia Reed Eddy.
According to the complaint, investigators obtained a search warrant for Craig’s Mitchell Avenue residence. When they were executing the search warrant, they encountered Craig leaving the residence from a basement stairwell. They took Craig into custody for an active bench warrant from the Allegheny County Court of Common Pleas. In the course of their search, investigators found two semi-automatic handguns, several live rounds of ammunition for various different calibers, magazines, boxes for both a weapon mounted light and optic, body armor, approximately thirteen ounces of mixtures and substances the field-tested positive for cocaine some of which is suspected to be powder cocaine and some of which is suspected to be cocaine base in the form commonly known as crack, approximately twelve ounces of suspected marijuana, approximately six grams of suspected ecstasy pills, several pieces of indicia addressed to Darryl Craig at this residence, $58,351 in US currency, eight cellular telephones, keys to a Mercedes Benz belonging to Darryl Craig, and copious amounts of drug paraphernalia associated with processing, manufacturing, and packaging of both cocaine and crack cocaine for sale. Craig has prior felony convictions in the Allegheny County Court of Common Pleas for carrying a firearm without a license and for the manufacture, delivery, or possession with intent to manufacture or deliver a controlled substance.
For the drug charge, the law provides for a maximum total sentence of 20 years in prison, a fine of $1 million or both if Mr. Craig is convicted. For the firearm charge, the law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both, if Mr. Craig is convicted. 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. Mr. Craig is being detained pending a detention hearing.
Assistant United States Attorney Ira M. Karoll is prosecuting this case on behalf of the government.
The Allegheny County Police Department is leading the investigation and has been assisted by the Bureau of Alcohol, Tobacco, Firearms and Explosive, the Clairton Police Department, and the Elizabeth Township Police Department in conducting the investigation, leading to the arrest of Mr. Craig.
A criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Cherokee Citizen Charged for Robbing a Sand Springs Gas Station and Assaulting the OwnerRead the Press Release
A Cherokee citizen was charged by Criminal Complaint today for robbing a gas station owner in Sand Springs, announced Acting U.S. Attorney Clint Johnson.
Camaran Blake Breazeale, 29, of Sand Springs, was charged with first degree robbery in Indian Country.
On July 13, the Sand Springs Police Department responded to a male loitering at a gas station. An officer arrived and notified Breazeale to leave the property’s premises.
Approximately twenty minutes later, the defendant returned to the gas station and said to the owner, “This is my store. Give me everything now.” According to the affidavit, video footage showed Breazeale striking the defendant with his fist multiple times and knocking him down. Then, he allegedly grabbed a shotgun and used the butt of the firearm to strike the victim repeatedly in the head saying, “Stop don’t move, or I will shoot you.” Breazeale then took cash from the register and exited the station.
The same police officer who responded to the initial loitering call was in the area when he heard a driver in a parked car yell at Breazeale on the north side of the store. As he approached Breazeale, a customer came running out to the store saying a man was on the floor covered in blood.
Breazeale then allegedly walked up to the officer and handed over the money saying “he gave me that.” His right hand appeared to have blood on it. The officer secured the defendant and rendered aid to the victim who was unconscious in the store with multiple injuries. The victim was transported by ambulance to an area hospital.
The crime occurred on the Muscogee Nation Reservation.
This matter will proceed in U.S. District Court in Tulsa, where the Complaint is currently pending. A Complaint is a temporary charge alleging a violation of law. For the case to proceed to trial, the United States must present the charge to a federal Grand Jury within 30 days. Once a Grand Jury returns an Indictment, a defendant has a right to a jury trial at which the United States would have the burden of proving the defendant’s guilt beyond a reasonable doubt. All defendants are presumed innocent until proven guilty in a court of law.
The FBI and Sand Springs Police Department are the investigative agencies. Assistant U.S. Attorneys Thomas E. Buscemi and Victor A.S. Régal are prosecuting the case.
California Man Sentenced to Four Years Imprisonment for Meth Trafficking ConspiracyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Mexican national who had been living in southern California, who pleaded guilty to Conspiracy to Distribute a Controlled Substance in South Dakota was sentenced on July 9, 2021 by U.S. District Court Judge Jeffrey L. Viken.
Uzziel Alejandro Carillo-Rojas, age 34, was sentenced to four years in federal prison, followed by three years supervised release, and a $100 special assessment to the Federal Crime Victims Fund, restitution.
Uzziel Alejandro Carillo-Rojas was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on December 8, 2020. He pleaded guilty on February 19, 2021.
From approximately June 2019 to December 2020, Carillo-Rojas obtained methamphetamine in California and transported it to South Dakota for further distribution. Carillo-Rojas was to receive compensation for transporting the methamphetamine. On November 11, 2020, Carillo-Rojas and a codefendant arrived in South Dakota to deliver 10 pounds of methamphetamine and were subsequently stopped and arrested by law enforcement.
This case was investigated by the Unified Narcotics Enforcement Team (UNET), Drug Enforcement Administration, and Homeland Security Investigations. UNET is comprised of law enforcement from the Pennington County Sheriff’s Office, the Rapid City Police Department, South Dakota Division of Criminal Investigation, South Dakota Highway Patrol, and the South Dakota National Guard. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Uzziel Alejandro Carillo-Rojas was immediately returned to the custody of the U.S. Marshals Service.