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31 August 2021
Chief Warrant Officer Pleads Guilty in International Navy Bribery and Fraud ScandalRead the Press Release
Assistant U.S. Attorneys Mark W. Pletcher (619) 546-9714, Michelle Wasserman (619) 546-8431, Valerie Chu (619) 546-6750, and David Chu (619) 546-8266
NEWS RELEASE SUMMARY – August 31, 2021
SAN DIEGO – Retired Chief Warrant Officer Robert Gorsuch admitted in federal court today that he received more than $45,000 in bribes from foreign defense contractor Leonard Francis, who plied him with stays at luxurious hotels plus meals, entertainment and other gifts in exchange for official acts that would help Francis’ ship husbanding business, including the disclosure of multiple classified ship schedules.
Gorsuch was one of nine members of the U.S. Navy’s Seventh Fleet indicted in March 2017 for participating in a conspiracy with Francis, the owner and CEO of Singapore-based Glenn Defense Marine Asia.
The U.S. Navy’s Seventh Fleet represents a vital piece of the United States military’s projection of power as well as American foreign policy and national security. The largest numbered fleet in the U.S. Navy, the Seventh Fleet is comprised of 60-70 ships, 200-300 aircraft and approximately 40,000 Sailors and Marines. The Seventh Fleet is responsible for U.S. Navy ships and subordinate commands that operate in the Western Pacific throughout Southeast Asia, Pacific Islands, Australia, and Russia and the Indian Ocean territories, as well ships and personnel from other U.S. Navy Fleets that enter the Seventh Fleet’s area of responsibility
Gorsuch is the first of the Seventh Fleet defendants to plead guilty. The remaining defendants, who are accused of trading military secrets and substantial influence for sex parties with prostitutes, extravagant dinners and luxury travel, are scheduled for trial on November 1, 2021. They include U.S. Navy Rear Admiral Bruce Loveless; Captains David Newland, James Dolan, Donald Hornbeck and David Lausman; Colonel Enrico DeGuzman; Lt. Commander Stephen Shedd; and Commander Mario Herrera.
This case has resulted in federal criminal charges against 34 Navy officials, defense contractors and the GDMA corporation. So far, 26 of those have pleaded guilty, admitting that they collectively accepted millions of dollars in luxury travel and accommodations, meals, or services of prostitutes from Francis in exchange for helping GDMA win and maintain contracts and overbill the Navy by over $35 million.
“Gorsuch essentially sold his honor for a few nights at the Shangri-La,” said Acting U.S. Attorney Randy Grossman. “Gorsuch sacrificed his integrity for so little and caused so much harm in the process. Today, Gorsuch has admitted his part in this scandal and will be held to account for his conduct.”
Gorsuch was a Chief Warrant Officer in the U.S. Navy, who, from January 2005 to March 2008, served as the Seventh Fleet’s Flag Administration Officer. In this role, he provided administrative support to the Seventh Fleet Commander, department heads, and other senior officers of the Seventh Fleet staff.
According to his plea agreement, Gorsuch admitted to receiving the following bribes from Francis:
On or about February 8, 2007, Gorsuch and others attended a party at the Manila Hotel in Manila, Philippines, for which Francis paid expenses, which totaled approximately $15,000.
On or about February 11, 2007, Gorsuch and others stayed at Francis’s expense at the Shangri-La Hotel in Cebu, Philippines.
From March 1-5, 2007, Gorsuch stayed at Francis’s expense at the Shangri-La Hotel in Kuala Lumpur, Malaysia.
On or about June 17, 2007, Gorsuch and others dined at Francis’s expense at Altitude Shangri-La in Sydney, Australia.
On or about January 19, 2008, defendant and others stayed at Francis’s expense for two nights at the Ritz Carlton in Tokyo.
According to admissions in his plea agreement, Gorsuch reciprocated by sending Francis disks containing classified ship schedules for the Navy’s Seventh Fleet. In an email to Francis on October 25, 2007, Gorsuch wrote: “By the way, the two disks … the yellow one is the latest with current C7F sked as briefed to the boss. I will investigate on the dates for the ships you requested and get back to you shortly.” Two days later, Gorsuch, using the same email account, sent Francis an email describing the planned movements of the U.S.S. Tarawa and U.S.S. Hopper for December 17-21, 2007. Likewise, on or about August 3, 2008, Francis emailed Gorsuch at the same email account to make a demand: “I need some [ship schedule] updates. When shall I call you?” Gorsuch responded: “Sked fluctuating a lot right now – should start to solidify next week. Will drop you an e-mail when they are done chopping it up next week and we can talk.
“Mr. Gorsuch's guilty plea unequivocally memorializes his participation in the charged corruption scheme, wherein he and others sacrificed the honor of serving our great nation with distinction in return for personal gain,” said Kelly P. Mayo, the Director of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service. “The comprehensive joint investigation that exposed Mr. Gorsuch's illegal activities is but one example of the lengths DCIS and its investigative partners will go to pursue justice for the Warfighter and defend the integrity of the men and women who truly exemplify service before self.”
“Mr. Gorsuch will be held fully accountable for accepting lavish gifts in exchange for, among other things, passing classified information to Mr. Francis and GDMA,” said NCIS Director Omar Lopez. “NCIS and our law enforcement partners remain committed to rooting out bribery and corruption wherever it exists and thwarting the potentially grave attendant consequences.”
DEFENDANT Case Number: 17-CR-0623-JLS
Chief Warrant Officer (Retired) Robert Gorsuch Age: 54 Mississippi
SUMMARY OF CHARGES
Bribery in violation of 18 U.S.C. § 201
Maximum Penalty: Fifteen years in prison, $250,000 fine
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Defense Contract Audit Agency
Charleston Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man pleaded guilty today to a federal gun crime.
According to court documents and statements made during the plea hearing, Richard Howard King, II, 26, was involved in an argument with another individual at a bar in Cross Lanes on March 13, 2021. During the argument, King retrieved a gun from his car and fired a .45 caliber round from it. King admitted that he possessed the round of .45 caliber Tula ammunition that was fired from the gun and that he was prohibited from possessing the ammunition as a result of a 2016 federal conviction. King was still on supervised release for the prior felony conviction at the time.
King pleaded guilty to being a felon in possession of ammunition and faces up to 10 years in prison when he is sentenced on December 9, 2021.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Alex Hamner is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 2:21-cr-00008 & 2:15-cr-000218.
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Camden Man Sentenced to 87 Months in Prison for Conspiring to Distribute over 1 Kilogram of HeroinRead the Press Release
CAMDEN, N.J. B A Camden man was sentenced today to 87 months in prison for conspiring to distribute more than 1 kilogram of heroin, Acting U.S. Attorney Rachael A. Honig announced.
David Velez, 31, previously pleaded guilty before U.S. District Judge Renée Marie Bumb to an information charging him with one count of conspiracy to distribute a controlled substance (heroin) from June 2018 through November 2018. Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in the case and statements made in court:
Using confidential informants, consensual recordings, over 40 controlled drug purchases, and court-authorized wiretaps, the investigation showed a large-scale drug operation in the 400-500 block of Pine Street in Camden in 2017-2018. Street-level sellers were supervised by managers, who also resupplied them with pre-packaged heroin, cocaine, and crack cocaine. Velez and his brother, Ramon Velez, sold heroin from the area surrounding his residence on Morgan Boulevard. David Velez was arrested on January 8, 2019.
Nineteen defendants were arrested on drug trafficking charges based on the investigation; 16 defendants have pleaded guilty on drug conspiracy charges, 12 of whom are awaiting sentencing. The remaining three defendants are awaiting trial.
The following co-defendants have been previously sentenced: Kaliel Johnson, 28, sentenced on June 3, 2021, to 110 months in prison; Ramon Velez, 44, sentenced on June 9, 2021, to 10 years in prison; Naeem Sadler, 21, sentenced on July 27, 2021, to 130 months in prison; and William Carrillo, 45, sentenced on Aug. 3, 2021, to 130 months in prison.
In addition to the prison term, Judge Bumb sentenced David Velez to five years of supervised release.
Acting U.S. Attorney Honig credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Acting Special Agent in Charge Bradley S. Benavides; the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer; the Camden County Sherriff’s Department, under the direction of Sheriff Gilbert L. Wilson; the Cherry Hill Police Department, under the direction of Chief William P. Monaghan; and the N.J. State Police, under the direction of Colonel Patrick J. Callahan, with the investigation leading to today’s sentencing. She also thanked the Drug Enforcement Administration, the U.S. Marshals Service, and the Department of Homeland Security for their assistance.
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 government is represented by Assistant U.S. Attorneys Patrick C. Askin and Sara Aliabadi of the U.S. Attorney’s Office’s Camden Office.
The charges and allegations against the three defendants awaiting trial are merely accusations, and they are presumed innocent unless and until proven guilty.
Calloway County Man Pleads Guilty to Illegal Firearms, MarijuanaRead the Press Release
JEFFERSON CITY, Mo. – An Auxvasse, Missouri, man pleaded guilty in federal court today to growing marijuana and illegally possessing dozens of firearms.
Darrin Dale Smithee, 55, pleaded guilty before U.S. Magistrate Judge Willie J. Epps Jr. to one count of manufacturing marijuana and one count of being a felon in possession of a firearm.
On Sept. 21, 2018, Callaway County sheriff’s deputies and members of the MUSTANG Task Force executed a search warrant at Smithee’s residence. Deputies located a room in the basement that contained two large industrial LED lights that ran off 1,000-watt amplifiers, several types of hoses used for ventilation, air filters, fertilizer and a water source. In the same room was a plastic tub containing marijuana stems, branches and leaves.
Also in the basement was a concrete bunker-type room with a bank vault-style door. Smithee used a combination and opened the vault door; officers found 66 firearms inside, including an S&S 12-gauge Street Sweeper, a Rohm .22-caliber rifle, a Smith & Wesson .357-caliber rifle, and a Norinco SKS .762/39 caliber rifle. Officers also found two small hard plastic children’s swimming pools, each of which contained several pounds of marijuana buds that were drying.
Officers searched Smithee’s bedroom and found a loaded pump action pistol grip Mossberg shotgun underneath a mattress. In the closet was a Ruger .22-caliber rifle with a loaded magazine. Officers also found several ounces of marijuana in a clear tub and in several sections of a dresser.
Officers saw marijuana plants during an aerial search of Smithee’s property. Officers then found 29 fully mature marijuana plants during a search of the field.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Smithee has a prior felony conviction for violating an order of protection.
Under federal statutes, Smithee is subject to a sentence of up to 15 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Aaron M. Maness. It was investigated by the Callaway County, Mo., Sheriff’s Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the MUSTANG Task Force, the Mid-Missouri Drug Task Force, the Fulton, Mo., Police Department, the Missouri State Highway Patrol, and the Missouri National Guard Counter Drug Program.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
California Methamphetamine and Firearm Dealer Sentenced to Seven Years in Federal PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Harjit Singh Dub, age 27, of Moreno Valley, California to seven years in federal prison, followed by five years of supervised release, for distribution of methamphetamine.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration - Washington Division; and Chief Marcus Jones of the Montgomery County Police Department.
According to his plea agreement, Dub mailed two parcels, the first parcel contained five kilograms of methamphetamine and another which contained a 39-caliber rifle to a P.O. Box in December 2019. Law enforcement officers intercepted the parcels from a Spencerville, Maryland post office, where they were searched pursuant to search warrants.
After shipping the parcels to Maryland, Dub traveled to Maryland to collect the money for the methamphetamine and rifle in person. As stated in the plea agreement, Dub traveled from California to the Washington National Airport where Dub unknowingly met with an undercover officer. While in route from the airport to Rockville, Maryland, Dub not only stated that he shipped the methamphetamine and the rifle, but that he also could ship firearm silencers and large quantities of cocaine and heroin.
When Dub arrived in Rockville, Maryland where he was arrested by law enforcement.
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 praised the DEA for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Erin B. Pulice who prosecuted the case.
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Butte man admits trafficking meth in communityRead the Press Release
MISSOULA – A Butte man accused of trafficking large quantities of methamphetamine in the Butte area admitted a drug trafficking crime today, Acting U.S. Attorney Leif M. Johnson said.
Travis Bridger Soderberg, 47, of Butte, pleaded guilty to possession with intent to distribute meth. Soderberg faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release.
U.S. Magistrate Judge Kathleen L. DeSoto presided. Sentencing was set for Dec. 21 before U.S. District Judge Dana L. Christensen. Soderberg was detained pending further proceedings.
In court documents, the government alleged that from October 2019 until about November 2020 in Butte and elsewhere in Montana, Soderberg distributed meth. Law enforcement learned through various sources that Soderberg would receive pound quantities of meth shipped in the mail from a source in California. When interviewed, Soderberg admitted to dealing meth and that he received shipments of up to 20 pounds of meth. Investigators also determined that Soderberg wired money to California to pay for the meth. Twenty pounds of meth is the equivalent of about 72,480 doses.
Assistant U.S. Attorney Ryan G. Weldon is prosecuting the case, which was investigated by the Drug Enforcement Administration, U.S. Postal Service, Homeland Security Investigations and the Montana Division of Criminal Investigation.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Businessman Sentenced to 14 Months in Prison for Paying Bribes to Federal and D.C. EmployeesRead the Press Release
WASHINGTON – Charles M. Thomas, 47, was sentenced today to 14 months in prison for paying bribes to two employees of U.S. Department of Housing and Urban Development (HUD) as well as to an employee of the District of Columbia Office of the State Superintendent of Education (OSSE) in return for favorable treatment on contracts for his business.
The announcement was made by Acting U.S. Attorney Channing D. Phillips, Robert E. Bornstein, Acting Special Agent in Charge of the FBI Washington Field Office, Criminal Division, Christopher Gaffney, Special Agent in Charge, Office of Special Investigations, HUD Office of Inspector General, and Daniel W. Lucas, Inspector General for the District of Columbia.
Thomas, of Lusby, Md., pleaded guilty in May 2018 in the U.S. District Court for the District of Columbia., to one count of conspiracy to commit bribery and two counts of conspiracy to pay gratuities and violate the Procurement Integrity Act. He was sentenced by the Honorable Randolph D. Moss. As part of his plea agreement, he is required to pay restitution to the D.C. Office of the State Superintendent of Education in the amount of $179,999. He also must pay a forfeiture money judgment in the same amount. Additionally, following his prison term, he will be placed on two years of supervised release.
According to court documents, Thomas was the sole owner and president of a Maryland company that provided information technology services to agencies of the federal government and educational services to public school children in the Washington, D.C. metropolitan area. His company had offices in the District of Columbia and Virginia and dozens of employees.
In his guilty plea, Thomas admitted to carrying out three schemes. One involved his dealings with a former management analyst of OSSE, an agency of the District of Columbia government. The others involved his dealings with a former contract oversight specialist and a former supervisory contract specialist with HUD.
In 2013 and 2014, according to the government’s evidence, Thomas made approximately $53,000 in payments to OSSE employee Shauntell Harley. In return, she provided him with information needed to create fraudulent invoices reflecting the provision of early intervention services that Thomas’s company did not provide. All told, Harley used her official position to cause $179,999 in payments to be made to Thomas’s company for work that was not performed.
The activities involving HUD took place from approximately 2010 to 2015. Thomas provided HUD employee Kevin Jones with tickets to sporting events, travel, cash, and other items worth more than $50,000, in exchange for Jones providing Thomas and his company with non-public information about pending HUD contracts. Thomas provided the second employee, former supervisor LaFonda Lewis, with tickets to sporting events, designer handbags, cash, and other items, worth more than $23,000, in exchange for non-public information about contracts.
Harley pleaded guilty to charges involving two bribery schemes in March 2018 and was sentenced to 56 months in prison. Lewis pleaded guilty to violating the Procurement Integrity Act in January 2019 and was sentenced to a year and a day in prison. Jones pleaded guilty to bribery in March 2019 and was sentenced to 24 months in prison.
In announcing the sentence, Acting U.S. Attorney Phillips, Special Agent in Charge Bornstein, Special Agent in Charge Gaffney, and Inspector General Lucas commended the work of those who investigated the case from the FBI’s Washington Field Office, HUD’s Office of the Inspector General, and the District of Columbia Office of the Inspector General.
They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including former Paralegal Specialists Joshua Fein and Kristy Penny. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Peter C. Lallas, who is investigating and prosecuting the matter.
Burnsville Felon Sentenced to 70 Months in Prison for Illegal Possession of FirearmsRead the Press Release
ST. PAUL, Minn. – A Burnsville man was sentenced today to 70 months in prison followed by three years of supervised release for possessing a firearm as a felon.
According to court documents, on July 13, 2019, officers with the Minneapolis Police Department conducted a traffic stop on a vehicle in which Hashim Salah Haji, 25, was riding in the front passenger seat. When officers ordered Haji to step out of the vehicle, a stolen 9mm Springfield Armory model XD9 pistol fell out of the defendant’s shorts. Officers also found a 50-round large capacity magazine and a 9mm Intratec "Tec 9" model AB10 pistol inside a backpack that was on the floor of the front passenger seat between the defendant's legs. Haji has previous felony convictions in Dakota County, and therefore is prohibited under federal law from possessing firearms or ammunition.
On September 1, 2020, Haji pleaded guilty to one count of possessing a firearm as a felon.
Acting U.S. Attorney W. Anders Folk for the District of Minnesota made the announcement after U.S. District Judge Wilhelmina M. Wright sentenced the defendant.
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 the result of an investigation conducted by the Minneapolis Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case was prosecuted by Assistant U.S. Attorneys Justin A. Wesley and David P. Steinkamp.
Buffalo Man Going to Prison for Defrauding TJ Maxx Out of Tens of Thousands of DollarsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Raymond D. Stover, 36, of Buffalo, NY, who pleaded guilty to wire fraud, was sentenced to serve 29 months in prison by U.S. District Judge Richard J. Arcara. The defendant was also ordered to pay restitution totaling $169,330.03 to TJ Maxx Companies, Inc.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that between May 2014 and August 18, 2018, the defendant participated in a multi-state scheme to defraud TJ Maxx Companies, Inc. (TJX) by engaging in receipt-less returns of stolen merchandise. TJX operates various retail chains, including Marshals and T.J. Maxx. During the course of the scheme, Stover stole items from TJX stores, and then returned the stolen merchandise without a receipt in exchange for a Store Value Credit (SVC) using identification documents in his name and the names of aliases he used. The defendant then sold the SVC gift cards he obtained to individuals and pawnshops for cash.
Specifically, on June 4, 2018, Stover entered a Marshalls store on Military Road in Niagara Falls, NY. Video surveillance captured the defendant taking four men's shirts into a dressing room. While inside the dressing room, Stover placed four non-Marshalls shirts, which were concealed under his own clothes, on the Marshalls hangers, and then placed the non-¬Marshalls merchandise on a rack on the sales floor. The defendant then left the store with the Marshalls merchandise concealed under his own clothes and without paying for the items. Later that same day, Stover went to the Marshalls store on Maple Road in Williamsville, NY, and conducted two receipt-less returns of the four shirts he stole earlier in the day, receiving a total of $157.08 loaded onto TJX SVC gift cards.
During the course of the scheme, Stover received a total of $149,360.11 in TJX SVC gift cards. In addition, TJX Investigators spent $19,969.92 investigating the defendant.
The sentencing is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
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Buffalo Man Caught with Cocaine in Car Pleads GuiltyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jaelyn Castro, 23, of Buffalo, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to possessing with intent to distribute cocaine. The charge carries a maximum sentence of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Charles E. Watkins, who is handling the case, stated that on May 8, 2021, Buffalo Police officers encountered a vehicle that was parked illegally outside of a store located at the intersection of Hampshire Street and Plymouth Avenue. As officers approached the vehicle, they advised the defendant, who was sitting in the driver’s seat, to remain stationary. However, Castro continued to move around in the driver seat. The officers then asked the defendant step out of the vehicle. During a search of Castro, an officer recovered two large baggies containing suspected cocaine.
The plea is the result of an investigation by the Buffalo Police Department, under the direction of Commissioner Byron Lockwood, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.
Sentencing is scheduled for February 17, 2022, before Judge Vilardo.
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Buchanan Woman Sentenced for Credit Card FraudRead the Press Release
ROANOKE, Va.– A Buchanan, Virginia woman was sentenced today to 24 months in federal prison after pleading guilty in February to multiple credit card fraud charges.
According to court documents, in three separate instances, Patricia Moseley, 61, using credit card accounts opened by three individuals, CS, RC, and PJ, obtained merchandise from Best Buy on Valley View Boulevard in Roanoke, Virginia.
Moseley pleaded guilty in February 2021 to three counts of access device fraud.
Specifically, on June 30, 2016, Moseley obtained $1,368 in merchandise from Best Buy on Valley View Boulevard in Roanoke, Virginia using the credit card account of PJ without their knowledge or consent.
On July 6, 2016, Moseley obtained $2,737 in merchandise using the credit card account of CS, without their permission or knowledge.
Moseley admitted to using the credit card accounts of CS, RC, and PJ to obtain a total of $5,475 in merchandise without the permission or knowledge of the card holders.
Acting U.S. Attorney Daniel P. Bubar of the Western District of Virginia made the announcement.
The investigation of the case was conducted by the United States Secret Service, and the Virginia State Police.
Assistant United States Attorney Charlene R. Day is prosecuting the case for the United States.
Brooklyn Woman Pleads Guilty to Unauthorized Intrusion into Credit Union’s Computer SystemRead the Press Release
Earlier today, in federal court in Brooklyn, Juliana Barile pleaded guilty to one count of computer intrusion arising from the defendant’s unauthorized intrusion into, and destruction of data on, the computer system of a New York credit union (the “Credit Union”) following her termination as an employee of the Credit Union. The guilty plea took place before United States District Judge Eric N. Vitaliano. When sentenced, Barile faces up to 10 years’ imprisonment and a fine.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty plea.
“In an act of revenge for being terminated, Barile surreptitiously accessed the computer system of her former employer, a New York Credit Union, and deleted mortgage loan applications and other sensitive information maintained on its file server,” stated Acting U.S. Attorney Kasulis. “Protecting private financial data from being compromised or destroyed by unauthorized computer intrusions is an important priority of this Office.” Ms. Kasulis also thanked New York City Police Department for their valuable assistance with the case.
“Ms. Barile may have thought she was getting back at her employer by deleting files, however she did just as much harm to customers. Her petty revenge not only created a huge security risk for the bank, but customers also depending on paperwork and approvals to pay for their homes were left scrambling,” stated FBI Assistant Director-in-Charge Driscoll. “An insider threat can wreak just as much havoc, if not more, than an external criminal. The bank and customers are now faced with the tremendous headache of fixing one employee's selfish actions.”
According to court filings, Barile was fired from her position as a part-time employee with the Credit Union on May 19, 2021. Two days later, on May 21, 2021, Barile remotely accessed the Credit Union’s file server and deleted more than 20,000 files and almost 3,500 directories, totaling approximately 21.3 gigabytes of data. The deleted data included files related to mortgage loan applications and the Credit Union’s anti-ransomware protection software. Barile also opened confidential files. After she accessed the computer server without authorization and destroyed files, Barile sent text messages to a friend explaining that “I deleted their shared network documents,” referring to the Credit Union’s share drive. To date, the Credit Union has spent approximately $10,000 in remediating Barile’s unauthorized intrusion and destruction of data.
The government’s case is being handled by the Office’s Cybercrime Task Force and the National Security and Cybercrime Section. Assistant United States Attorneys David K. Kessler and Meredith A. Arfa are in charge of the prosecution.
The Eastern District of New York’s Cybercrime Task Force was formed in May 2021 to combat cybercrime, which is proliferating in the United States, including in this district, as well as internationally. The Task Force’s goals are to initiate cybercrime investigations and prosecutions, disseminate information about emerging cybercrime issues and trends, and heighten awareness about a wide variety of cybercrime schemes. The Task Force works with our traditional law enforcement partners, including the FBI, the United States Secret Service, Homeland Security Investigations and the Cybersecurity and Infrastructure Security Agency, as well as the Drug Enforcement Administration. The Task Force also coordinates with regulatory partners, including the U.S. Securities & Exchange Commission and the Federal Trade Commission, as well as state and local counterparts, such as the New York State Department of Financial Services, New York City Cyber Command and the New York City Police Department.
Defendant:
JULIANA BARILE
Age: 35
Brooklyn, New YorkE.D.N.Y. Docket No. 21-CR-441 (ENV)
Bozeman business owner admits evading taxesRead the Press Release
MISSOULA – A Bozeman business owner today admitted tax evasion charges after an investigation determined he under reported his income for two years to avoid paying at least $41,000 in taxes, Acting U.S. Attorney Leif M. Johnson said.
Brandon Robert Wilson, 37, owner and operator of Shedhorn Construction, Inc. (SCI), pleaded guilty to two counts of tax evasion. There was no plea agreement in the case. Wilson faces a maximum five years in prison, a $100,000 fine, and three years of supervised release on each count.
U.S. Magistrate Judge Kathleen L. DeSoto presided. Sentencing was set for Dec. 21 before U.S. District Judge Dana L. Christensen. Wilson was released pending further proceedings.
In court documents, the government alleged federal agents received information that Wilson was claiming personal expenses as business deductions on his taxes and was writing his name, rather than the company’s name, on invoices so payments from clients would go directly to him. Investigators found that Wilson claimed $179,101 of gross receipts for SCI in 2014, but that he was paid approximately $331,350, for an understatement of $152,248. In 2015, Wilson reported business income totaling $193,528, but that the company made $259,133, resulting in an understatement of $65,605. Investigators determined that—assuming he properly reported legitimate business expenses as deductions--Wilson owes additional taxes of $36,353 for 2014 and $4,799 for 2015. Wilson indicated his intention to contest the loss amount. The parties will submit a request for a hearing to determine the extent of Wilson’s outstanding tax liability prior to sentencing.
Assistant U.S. Attorney Karla E. Painter is prosecuting the case, which was investigated by the IRS-Criminal Investigation.
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Berwick Man Charged with over $400,000 in Covid-Relief FraudRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Hayes D. Horner, Jr., age 67, of Berwick, Pennsylvania, was charged in a criminal information with perpetrating a wire fraud scheme to obtain and attempt to obtain over $400,000 in COVID-19 relief guaranteed by the Small Business Administration through the Economic Injury Disaster Loan (EIDL) program.
The EIDL program is designed to help small businesses facing financial difficulties during the COVID-19 pandemic. Funded by the March 2020 CARES Act, EIDL funds are offered in low-interest rate loans, designated for specific business expenses, such as fixed debts, payroll, and business obligation.
According to Acting United States Attorney Bruce D. Brandler, the Information alleges that Horner aided his coconspirators in obtaining and attempting to obtain over $400,000 in EIDL funds by opening two bank accounts that received EIDL funds obtained pursuant to fraudulent loan applications made in the names of other, unknowing individuals. Horner allegedly withdrew over $58,000 in fraudulently obtained EIDL funds, and attempted unsuccessfully to wire approximately $165,000 in fraudulently obtained EIDL funds to other accounts under his coconspirators’ control. Investigators seized over $100,000 in fraudulently obtained EIDL funds from a bank account under Horner’s control.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S.Attorney Phillip J. Caraballo 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.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Baltimore County Hit Man Pleads Guilty to Federal Murder-for-Hire and Extortion ChargesRead the Press Release
Baltimore, Maryland – Stepfen Gerard Gaither, age 30, of Randallstown, Maryland, pleaded guilty today to federal charges for a murder-for-hire conspiracy and for interstate communications with intent to extort, in connection to the extortion and planned murder of a Baltimore County restaurant owner and his partner over a debt, as well as to possession with intent to distribute more than 40 grams of fentanyl and heroin.
The guilty plea was announced by United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
According to his plea agreement and other court documents, Gaither was hired by codefendant Clement Robert Mercaldo, Jr. to send messages threatening victims and their families in order to extort money. During the course of the plots, Mercaldo paid Gaither to vandalize a victim’s car and set fire to a victim’s house as part of the plot to extort. Later, Mercaldo agreed to pay Gaither to murder a victim. Gaither also possessed with the intent to distribute 723 pills containing fentanyl and heroin that were marked as Oxycontin.
“Over the Spring of 2019, Stepfen Gaither terrorized a family in Baltimore County, including setting one victim’s house on fire, sending threatening messages and plotting the murder of a restaurant owner,” said Acting U.S. Attorney Jonathan Lenzner. “Thanks to terrific investigative work by the FBI and Baltimore County Police Department, Gaither and his co-conspirator were stopped before they succeeded in their murder-for-hire plot. Hopefully these convictions will send a message of deterrence to others who are contemplating threats and violence to advance their business interests or settle their disputes.”
“This case serves as a reminder to those offenders who are a menace in our neighborhoods by committing violent acts, that the FBI continues to protect the public and hold accountable those who have such bold disregard for the law and more importantly human life,” said FBI Special Agent in Charge Thomas J. Sobicinski.
“The charges in this case are highly disturbing as they demonstrate a blatant disregard for human life,” said Baltimore County Police Chief Melissa Hyatt. “After extensive investigation, detectives from the Baltimore County Police Department’s Criminal Intelligence and Arson Teams worked collaboratively with federal prosecutors to hold these defendants accountable for the acts of violence they committed and conspired to commit in Baltimore County.”
Between 2008 and 2017, Mercaldo, a former restaurant owner, loaned over $1 million to the victim. The victim repaid Mercaldo until 2019, when he was unable to make further payments. As a result, Mercaldo was in significant financial distress, causing him to sell personal belongings in order to continue to pay his expenses.
Beginning in March 2019, Mercaldo hired Gaither to assist in his plot to collect the debt through a variety of extortionate means. Mercaldo gave at least $1,000 in cash to Gaither in exchange for Gaither agreeing to send threatening messages to the victim and destroy the victim’s property, with the intent to pressure the victim to repay Mercaldo.
According to Gaither’s plea agreement, on March 10, 2019, Gaither traveled to the victim’s residence to conduct surveillance, and contacted Mercaldo by cell phone while he was at the residence. Just prior to March 28, 2019, Mercaldo traveled to Florida. On the evening of March 28, 2019, Gaither again traveled to the victim’s residence and an object smashed the windows of the victim’s car, while the car was in his driveway. Mercaldo returned from Florida on March 29th, when he supplied Gaither with another cash payment. Mercaldo also provided Gaither with the phone number to the victim’s restaurant. Immediately before and after the windows were smashed, Gaither used an anonymous texting application to threaten the victim. The messages referenced a debt and threatened the victim’s wife. In the first few days of April 2019, Gaither also placed calls to the victim in which he took responsibility for smashing the windows and then threatened the victim’s wife.
On April 10, 2019, at Mercaldo’s request, Gaither, using the same number used to contact the victim, sent Mercaldo a message falsely purporting to be from a person from Delaware who was trying to collect money and threatening Mercaldo’s son. Mercaldo asked Gaither to send this message so that Mercaldo could show it to the police when he was questioned about the victim’s smashed windows and other threats.
On April 12, 2019, Mercaldo was interviewed by a detective from the Baltimore County Police Department, regarding the destruction of property at the victim’s residence. Mercaldo falsely told the detective that he too had been receiving threatening messages from a person identifying themselves as “Robin.” Mercaldo then showed the detective the fake message Gaither sent him two days earlier, which included a screen shot of Mercaldo’s son playing lacrosse at his high school. Mercaldo also provided detectives with a false story about his loan to the victim, claiming that he obtained the money he loaned the victim from an unnamed person in Michigan, who loaned the money to Mercaldo at a high interest rate, and that Mercaldo pays this person in cash on the first of the month after receiving an anonymous text message providing the location to meet for the transaction. Additionally, Mercaldo told the detective that he returned home from Florida on March 29, 2019 to find that the windshield of his Mercedes was also smashed, although he did not report it to the police. Mercaldo stated that he believed that the smashing of his windshield was related to the smashing of the victim’s windshield. In truth, Mercaldo’s windshield was damaged by a rock from another car and was repaired on March 14, 2019, two weeks prior to the vandalism of the victim’s car.
From April 2019 through July 2019, Mercaldo withdrew more than $5,000 in cash from his bank account, which he paid to Gaither, who deposited similar amounts of cash into his bank account. For example, on April 26, 2019, May 7, 2019, and May 15, 2019, Mercaldo withdrew a total of $4,000 cash from his bank account in Maryland, and between May 3rd and July 19th, Gaither deposited $2,514 into his account. The purpose of the payments was for Giather to set fire to the victim’s home.
After conducting surveillance at the victim’s house on July 29 and August 1, 2019, at Mercaldo’s direction, in the early morning hours of Sunday, August 4, 2019, Gaither traveled to the victim’s house, where he again conducted surveillance. While the victim and his wife were asleep upstairs, a rear basement window at the house was broken and a flammable liquid was ignited. Gaither left the area when he heard emergency vehicles responding to the fire.
The victim and his wife were awoken by the smoke detectors, and escaped the fire with the family cat. Although no injuries were sustained to the family or emergency responders, the fire caused significant damage to the residence and destroyed much of the victim’s personal property. As a result of the damage, the victim and his wife were forced to move out of their home and to live elsewhere. In the days immediately following the arson, Mercado withdrew $1,500 cash from his bank account and gave it to Gaither, who deposited $1,290 in cash into his account.
In August and September 2019, Gaither sent numerous threatening text messages from anonymous texting applications to the victim and his business partner. The messages demonstrated that they were being followed. The threats referenced a debt, and many of the messages threatened to harm the victims and their families. For example, on August 30, 2019, Gaither sent a message to the victim, which referenced the arson as part of the efforts to collect the debt Mercaldo continued to instruct Gaither to send threatening messages and on October 22, 2019, the business partner received the message, “This is the third check you and your partner gave me that bounce i talked to him and he gave me your address saying you is stealing from him and do what i have to do to get my money from you he even gave me pictures of your wife and kids.”
On October 26, 2019, Gaither used the anonymous texting application to arrange for and receive a cash payment from the business partner. The payment was observed and recorded by law enforcement. Immediately after receiving the money, Gaither purchased an Apple watch, and deposited cash onto his account. Gaither and Mercaldo subsequently exchanged text messages for several days about this payment, with Mercaldo stating that the victims told him a payment was made to Gaither and Gaither adamantly denying receiving any money from the victims.
Starting on October 29, 2019, and continuing through at least the end of January 2020, Mercaldo and Gaither began discussing “plan b” – the murder of one or both of the victims for their lack of payment. For example, on November 3, 2019 Mercaldo sent a text to Gaither, “Hope you whack his ass!” On November 8, 2019, Mercaldo texted Gaither, “Nail em plz !!” In January 2020, Gaither conducted surveillance at the residences and business of the victims, taking images and videos and during some of the videos, he narrated how he planned to follow and attack the victim. During two of the videos Gaither is seen holding two different handguns in his vehicle during surveillance. Gaither sent these videos and images to Mercaldo as attachments to numerous text messages, during, and immediately after, many of the incidents of surveillance. Gaither and Mercaldo continued to communicate about the victims and the debt through March 2020 and as late as May 30, 2020.
Gaither and Mercaldo were arrested on June 23, 2020 and remain detained. During the search of Gaither’s house on June 23, 2020, investigators recovered a loaded handgun and ammunition in a safe in Gaither’s dresser drawer. Also found during the search was a permit to carry a handgun – dated April 2, 2020. In the same bedroom, on the top shelf of the closet was a second safe, containing 732 pills marked as 30 mg OxyContin, which has a street value of approximately $22,000. The pills were seized and analyzed by the Baltimore County Police Department Forensic Services Laboratory, and it was determined that the pills contained a detectable amount of fentanyl and heroin. Next to the safe in Gaither’s bedroom closet was a Glock handgun box containing two boxes with a total of 68 rounds of 9mm ammunition.
The arson at the victim’s residence in August 2019 caused an estimated $302,774.89 of damage to the dwelling and contents, and a loss to the insurance company of $353,340.66 as a direct result of the fire.
A subsequent examination of Gaither’s phone revealed drug trafficking activity, going back at least three years, including text messages discussing the wholesale purchase and sale of narcotics, including messages in June 2020, just days before Gaither’s arrest. The phone also contained images of large quantities of apparent narcotics, and two June 2020 videos of the defendant using a digital scale to weigh apparent crack cocaine. Gaither’s phone contained numerous images and videos of firearms over several years.
Clement Robert Mercaldo, Jr., age 62, of Timonium, Maryland pleaded guilty to his role in the murder-for-hire on August 5, 2021 and is scheduled to be sentenced on September 28, 2021, at 10:00 a.m.
Gaither and the Government have agreed that, if the court accepts the guilty plea, Gaither will be sentenced to between 11 and 13 years in federal prison. U.S. District Judge Ellen L. Hollander has scheduled sentencing for January 6, 2023 at 2:000 p.m.
Acting United States Attorney Jonathan F. Lenzner commended the FBI and Baltimore County Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Paul E. Budlow, who is prosecuting the case.
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Armed Montgomery County Drug Dealer Pleads Guilty to Possession with Intent to Distribute Controlled SubstancesRead the Press Release
Greenbelt, Maryland – Ronnie Hammond, age 21, of Laurel, Maryland, pleaded guilty yesterday to possession with intent to distribute a controlled substance.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division, and Chief Marcus Jones of the Montgomery County Police Department (MCPD).
According to his guilty plea, during the course of their investigation of Hammond, MCPD officers recovered several cellular phones that revealed Hammond’s drug trafficking activity. Hammond routinely coordinated with dealers and suppliers to distribute marijuana. On at least five instances, law enforcement intercepted Hammond’s coded conversations with several co-conspirators regarding drug transactions.
For example, on August 30, 2019, Hammond told Co-conspirator 1 that his stash house was “dry” and Co-Conspirator 1 warned Hammond that law enforcement was in the area in “plain clothes”. Hammond stated that his source of supply just contacted him. Co-Conspirator 1 then asked for Hammond to sell him an eighth of marijuana and he just sold out. Following the previous conversation, one of Hammond’s suppliers sent Hammond a picture of high-quality marijuana and quoted a price of $600.
As stated in his plea agreement, on November 19, 2019, MCPD officers conducted undercover surveillance in a parking lot. During the surveillance, officers observed a male and female on a picnic table smoking marijuana. Officer then observed the two individuals get into a sedan that parked in an adjacent parking lot.
Officers approached the vehicle and knocked on the driver’s side window. Hammond was seated in the front passenger seat. A MCPD officer asked Hammond if he possessed any marijuana, and he produced a small baggie of marijuana from a satchel. As a result of a search of Hammond, officers recovered a black semi-automatic 9mm pistol loaded with 15 rounds of ammunition. Hammond agrees the firearm was possessed to facilitate his drug distribution activities. Officers also recovered additional marijuana, a digital scale, and clear plastic baggies inside of Hammonds satchel. Officers recovered approximately 17 grams of marijuana and $541 in Hammond’s drug proceeds.
Hammond was subsequently arrested and released on several conditions, including that Hammond refrain from participating in any criminal activity. However, while on release, Hammond illegally sold firearms to at least one individual, including two 9mm handguns.
Hammond and the government have agreed that, if the Court accepts the plea agreement, Hammond will be sentenced to between 24 months and 36 months in federal prison. U.S. District Judge George L. Hazel has scheduled sentencing for December 2, 2021 at 10 a.m.
Acting United States Attorney Jonathan F. Lenzner commended the ATF and the Montgomery County Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Kelly O. Hayes and Special Assistant U.S. Attorney Jessica C. Harvey, who are prosecuting the case.
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Armed Gang Member Receives 57 Months After Throwing Stolen Gun in Judge’s Parking LotRead the Press Release
WILMINGTON, N.C. – Nahledge Vaughn, 20, of Wilmington, was sentenced to 57 months in prison for Possession of a Firearm by a Convicted Felon.
According to court documents, evidence presented in court and other documents, on December 9, 2020, the Wilmington Police Department was utilizing enhanced patrols because of an increase in gang associated violence. Officers saw Vaughn who was a passenger in a car driven by another validated gang member. The driver did not have a valid license. Law enforcement attempted to stop the car in the area of 5th and Market Streets in Wilmington. Vaughn jumped out of the car and attempted to flee on foot. Vaughn ran by the New Hanover County Courthouse and threw a stolen loaded Glock handgun into the gated Judge’s parking lot. He was arrested shortly after that. Courthouse Security exited the courthouse and searched the parking lot. They retrieved the firearm. The incident was captured on video.
Vaughn had previously been validated as a gang member by the Wilmington Police Department. Vaughn was on probation for possession of a stolen firearm at the time of his arrest in December and prohibited from possessing a gun. Vaughn was convicted of possessing a stolen handgun in July 2020. The New Hanover County Sheriff’s Office, following a search of Vaughn’s bedroom, found a stolen handgun, a 50-round drum for a Glock handgun, a speed loader and a laser attachment for a handgun in February 2020.
This is part of operation “Obviously Your Not Golfer” which is an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Wilmington Police Department, Holly Ridge Police Department, the Bureau of Alcohol, Tobacco and Firearms, the Federal Bureau of Investigation and the New Hanover County Sheriff’s Office investigated the case and Assistant U.S. Attorney Timothy Severo prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:21-cr-00046-M-1.
Albuquerque drug trafficker sentenced to 32 years in prisonRead the Press Release
ALBUQUERQUE, N.M. – Javier Jaquez, 50, of Albuquerque, was sentenced on Aug. 26 to 32 years in federal prison. On Sept. 18, 2020, Jaquez pleaded guilty to possession with intent to distribute 100 grams and more of heroin, possessing a firearm in furtherance of a drug trafficking crime, and being a felon in possession of firearms and ammunition.
In his plea agreement, Jaquez admitted to conspiring with others to sell large amounts of methamphetamine in Albuquerque, which involved others acting at his direction beginning on August 18, 2017, when Jaquez sold one pound of methamphetamine through an intermediary. After several more transactions, Jaquez arranged to sell 20 pounds of methamphetamine on July 27, 2018. According to court records, when law enforcement moved to arrest Jaquez, he attempted to flee with accomplice Freddie Sanchez.
Jaquez admitted to storing drugs at his business, Jaquez Brothers Trucking, including methamphetamine, cocaine, and over 100 grams of heroin. Jaquez also possessed a .45 caliber pistol and two rifles, as well as ammunition for the firearms. As a previously convicted felon, Jaquez cannot legally possess firearms or ammunition.
Upon his release from prison, Jaquez will be subject to five years of supervised release.
Sanchez pleaded guilty on Sept. 18, 2020, to possession with intent to distribute methamphetamine and using and carrying a firearm during and in relation to a drug trafficking crime and possessing a firearm in furtherance of such a crime. On March 19, Sanchez was sentenced to seven years and six months in prison, to be followed by five years of supervised release. A third co-conspirator, Kevin Garcia-Salas, pleaded guilty on Sept. 18, 2020, to conspiracy to commit drug trafficking and distribution of 50 grams and more of methamphetamine. On Feb. 24, Garcia-Salas was sentenced to three years and five months in prison, to be followed by three years of supervised release.
The Albuquerque Office of the Drug Enforcement Administration’s El Paso Field Division investigated this case as part of the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF is an independent component of the U.S. Department of Justice established in 1982 to combat transnational-organized-crime and to reduce the availability of illicit narcotics in the nation by using a prosecutor-led, multi-agency approach to enforcement. OCDETF leverages the resources and expertise of its partners in concentrated, coordinated, long-term enterprise investigations of transnational organized crime, money laundering and major drug trafficking networks.
Assistant U.S. Attorney Paul Schied prosecuted the case.
Active-duty Sailor and his former Navy colleague are charged with conspiring to traffic guns from Georgia to New JerseyRead the Press Release
ATLANTA - Elijah Isaiah Boykin, an active-duty U.S. Navy Sailor, and Elijah Keashon Barnes have been indicted for unlawfully obtaining and transporting dozens of firearms that were later used in New Jersey-area crimes. Boykin and Barnes served together in the U.S. Navy until June 2020, when Barnes was discharged following his confinement for repeated violations of military law.
“Federal law prohibits the making of false statements and misrepresentations to licensed firearms dealers,” said Acting U.S. Attorney Kurt R. Erskine. “Individuals who use deception to buy guns intended for other people will face severe consequences, including imprisonment and the loss of valuable civil rights.”
“The unlawful acquisition and trafficking of firearms is a serious crime that threatens our communities here and abroad,” said ATF Special Agent in Charge, Atlanta Field Division Ben Gibbons. “This investigation illustrates the dedication of ATF and its law enforcement partners to disrupt illegal firearm straw purchase schemes within the U.S. or anywhere criminals choose to operate.”
According to Acting U.S. Attorney Erskine, the charges, and other information presented in court: Between April 2020 and August 2020, Elijah Isaiah Boykin purchased more than two dozen firearms from federally licensed firearms dealers in Georgia and Virginia. The total purchase price exceeded $17,000 and was spread over eight transactions. On each occasion, Boykin signed paperwork stating that he was the actual purchaser of the guns but paid using a credit card belonging to co-defendant Elijah Keashon Barnes.
Local law enforcement in and around Newark, New Jersey began to recover Boykin’s firearms shortly after they were purchased. One pistol was recovered in October 2020, when police officers in Newark conducted a traffic stop and arrested Barnes, who was wanted on a Virginia warrant for domestic assault and battery. The pistol was found in Barnes’s car. A few months later, Newark police officers recovered another gun that Boykin purchased. Forensic testing linked that second firearm to three separate shootings in Newark, including a violent mugging during which a victim was shot multiple times in the right leg.
To date, at least six firearms purchased by Boykin have been recovered in the city of Newark or a nearby township.
Elijah Isaiah Boykin, 25, of Palmetto, Georgia, and Elijah Keashon Barnes, 21, of Newark, New Jersey, were indicted by a federal grand jury on June 15, 2021 for conspiracy to make false statements, three counts of making false statements to federally licensed firearms dealers, and one count of unlawful transfer of firearm. On August 25, 2021, Boykin was arrested by Naval Criminal Investigative Service (NCIS) Agents at Naval Air Station Key West. Barnes was arrested the same day in Newark. The defendants will be arraigned at a later date in the Northern District of Georgia.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorney Theodore S. Hertzberg, Firearms Trafficking Coordinator for the Northern District of Georgia, is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
30 August 2021
Worcester Man Sentenced for Being Felon in Possession of Firearm and AmmunitionRead the Press Release
BOSTON – A Worcester man was sentenced today in federal court for being a felon in possession of a firearm and ammunition.
Nicholas Briggs, 22, was sentenced by U.S. District Court Judge Timothy S. Hillman to 40 months in prison and three years of supervised release. On May 11, 2021, Briggs pleaded guilty to one count of being a felon in possession of a firearm and ammunition.
On July 4, 2020, Briggs was arrested for carrying a loaded Glock pistol. Briggs is prohibited from possessing a firearm due to prior convictions punishable by more than one year in prison.
Acting United States Attorney Nathaniel R. Mendell; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Worcester Police Chief Steven M. Sargent made the announcement. Assistant U.S. Attorney Danial E. Bennett of Mendell’s Worcester Branch Office prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
White River Man Charged with Burglary and LarcenyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a White River, South Dakota, man has been indicted by a federal grand jury for Third Degree Burglary and Larceny.
Kurt Bartlett, age 27, was indicted on February 8, 2021. He appeared before U.S. Magistrate Judge Mark A. Moreno on August 25, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to five years in custody and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on July 9, 2021, in Mission, Bartlett unlawfully entered the Todd County School District Bus Shop and stole property valued over $1,000.
The charges are merely accusations and Bartlett is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Bartlett was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Violent felon charged with using stolen ID to purchase guns recovered from crimes scenes in multiple statesRead the Press Release
ATLANTA - Dawuan Na’jee Williams has been indicted on federal charges of making false statements to federally licensed firearms dealers, aggravated identity theft, and possession of firearms by a convicted felon.
“Convicted felons are prohibited from legally possessing and purchasing firearms under any circumstance,” said Acting U.S. Attorney Kurt R. Erskine. “Criminals who try to circumvent these restrictions by stealing and using the identities of law-abiding citizens will be prosecuted.”
“It is illegal for any convicted felon to possess a firearm,” said L. C. Cheeks Jr, Acting ATF Atlanta Special Agent in Charge. “These illegally purchased firearms will more than often be used in violent crimes and it is these types of guns that we need to get off our streets. ATF will continue to work with our Federal and State partners to improve safety in each and every community we serve.”
According to Acting U.S. Attorney Erskine, the charges, and other information presented in court: Dawuan Williams allegedly used a fraudulently obtained identification card bearing his photograph, but the name and date of birth of another person, to purchase dozens of firearms and large-capacity ammunition magazines in the metro Atlanta and North Georgia areas. Williams could not lawfully purchase the guns because he had been convicted previously of numerous felonies, including burglary, robbery, terroristic threats, kidnapping, aggravated battery, and criminal use of personal identification information.
Federal agents began investigating Williams’s purchases in May 2021, when police officers recovered from a Newark, New Jersey, crime scene a semiautomatic pistol that Williams allegedly purchased in Georgia just eight days earlier.
In July 2021, police officers recovered a second semiautomatic pistol from the scene of a shooting in Tallahassee, Florida. Federal agents traced this firearm to a Georgia purchase made with Williams’s identification card. A cellular telephone video taken around the time of the Florida shooting depicted the alleged shooter as a man of Williams’s race and complexion wearing a distinctive red baseball cap and red Gucci belt.
On July 20, 2021, federal agents searched a Jonesboro, Georgia, residence where Williams rented a room. In one of the bedrooms, agents recovered four firearms that had been purchased with Williams’s fake ID, empty firearm boxes for other firearms purchased with that ID, a red baseball cap, and a red Gucci belt. Williams was arrested that same day.
Dawuan Na’jee Williams, 39, of Jonesboro, Georgia. and Tallahassee, Florida, was arraigned before U.S. Magistrate Judge John K. Larkins III. He was indicted by a federal grand jury on August 17, 2021. He was arraigned August 26. 2021. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Atlanta, Georgia, and Newark, New Jersey, Field Divisions of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorney Theodore S. Hertzberg, Firearms Trafficking Coordinator for the Northern District of Georgia, is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Vacaville High-Speed Chase Leads to Federal Conviction of Hayward Felon for Illegal Possession of FirearmsRead the Press Release
SACRAMENTO, Calif. — On Thursday, Aug. 26, after a three–day trial, a federal jury found Eligio Nunez, 42, of Hayward, guilty of being a felon in possession of firearms, Acting U.S. Attorney Phillip A. Talbert announced.
According to evidence presented at trial, on Aug. 7, 2020, Nunez led police in a high-speed chase while driving a stolen Lexus. He ended the pursuit by abandoning the car in a grassy area off of Shelton Lane in Vacaville. After running from police, he was apprehended by officers in a dry creek bed. Just after he fled on foot, the car caught fire, which caused ammunition inside the car to explode. Later, an investigation found three handguns inside the burned car, which the jury found Nunez to have possessed. Nunez was prohibited from possessing firearms a result of his 10 felony convictions, which include assault with a deadly weapon, felon in possession of a firearm, evading a peace officer, and two drug trafficking offenses.
This case is the product of an investigation by the Federal Bureau of Investigation and the Vacaville Police Department. Assistant U.S. Attorneys Jason Hitt and Paul A. Hemesath are prosecuting the case.
Nunez is scheduled to be sentenced by U.S. District Judge William B. Shubb on Nov. 23, 2021. Nunez faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will 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.
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.
Utah Real Estate Developer Pleads Guilty to Wire Fraud and Tax Fraud involving Daufuskie Island ResortRead the Press Release
Charleston, South Carolina --- Acting United States Attorney Rhett DeHart announced today that James Thomas Bramlette, 42, of Salt Lake City, Utah, pled guilty to Wire Fraud and Tax Fraud in violation of 18 U.S.C. § 1343 and 26 U.S. § 7202, before United States District Judge Richard M. Gergel. Bramlette will be sentenced at a later date.
The following evidence was presented at the guilty plea: this investigation involved Melrose Report on Daufuskie Island, S.C. Bramlette was a real estate developer in Salt Lake City, Utah. In 2011, he borrowed $17.5 million from a Dutch investor to purchase the resort out of bankruptcy. This loan was a short-term bridge loan with high interest rates. Bramlette did not put any of his own money into the purchase. Bramlette thought he could resale the resort soon after the sale, but his attempts to refinance or sell the resort failed repeatedly throughout the case.
In addition to the Dutch loan, Bramlette and a co-defendant raised more than $10 million from individual investors by issuing promissory notes with high interest rates. The promissory notes were not secured by the resort. Most of the investors resided in the West.
The investment in the resort was difficult from the start. Bramlette could not make the mortgage payments to the Dutch lender, which led to a $27 million foreclosure judgment in 2014. Bramlette lost further control of the resort in October 2014 when he pledged ownership of the property to secure a separate $700,000 loan, which he later defaulted on.
Bramlette and his co-defendant struggled every month to raise money from new investors to pay the Dutch lender not to foreclose, to pay previous investors, and to pay employees, utilities, and taxes at the resort. From 2013 through 2017, Bramlette repeatedly told investors that the resort was on the cusp of being refinanced by a private equity firm. While several firms considered investing in the resort, none of these deals came to fruition.
After he lost control of Melrose Resort in late 2014, Bramlette was allowed to remain as manager of the resort due to his operational knowledge of the property. Part of his duties as manager included paying the property taxes for Melrose Resort.
Concerning the wire fraud charge, in September 2016, Melrose Resort owed $502,759 in past due property taxes to the Beaufort County Treasurer’s Office. As a result of this tax delinquency, the Beaufort County Treasurer’s Office notified Bramlette that Melrose Resort would be auctioned at a tax sale if the property taxes were not paid.
On September 20, 2016, an employee of Bramlette emailed this notice and stated that “we have a week from this Friday, September 30th, 2016 to pay these taxes, which total $502,759.40 or the properties go up for sale on Monday, October 3, 2016.”
It was part of the scheme to defraud that, in order to prevent the resort from being sold at this tax sale, Bramlette created a fake wire receipt that falsely represented that Melrose Resort had wired $502,759 to the Beaufort County Treasurer’s Office to pay the property taxes. In reality, Melrose Resort had only $121.07 in its bank account at this time, and these funds were not wired as Bramlette represented.
It was further part of the scheme that Bramlette emailed the fraudulent wire receipt to one of his employees, and he caused this employee to send the fraudulent wire receipt to the Beaufort County Treasurer’s Office, in order to have Melrose Resort removed from the tax sale. After receiving the fraudulent wire receipt, the Beaufort County Treasurer’s Office removed Melrose Resort from the tax sale.
As to tax fraud charge, Bramlette was required to collect and pay over federal payroll taxes from the wages of all employees at Melrose Resort. Bramlette collected payroll taxes from the Melrose employees, but he failed to turn over these taxes to the IRS. In total, Bramlette collected but failed to turn over to the IRS approximately $1 million in payroll taxes.
In addition to the fraud above, Bramlette used at least $1.8 million from investors for personal use, which was not disclosed to investors. Bramlette lived a lavish lifestyle, and he spent money on himself even when he failed to pay employees, vendors, and subcontractors. The accountant at his company urged Bramlette to draw a salary and not use investor money for personal use. Bramlette ignored this advice and failed to report this income to the IRS or even file income tax returns.
This case was prosecuted by Acting United States Attorney Rhett DeHart. It was investigated by the Federal Bureau of Investigation, the Internal Revenue Service, and the Securities and Exchange Commission in Los Angeles.
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U.S. Attorney’s Office Announces Agreement Securing Westinghouse’s Cooperation in the V.C. Summer Criminal Investigation and Payment of $21.25 Million for Low Income Ratepayer ReliefRead the Press Release
Columbia, South Carolina---- Acting United States Attorney M. Rhett DeHart announced today that his office has reached a $21.25 million cooperation agreement with Westinghouse Electric Company, amidst the ongoing investigation of criminal misconduct surrounding the failed construction of two new nuclear units at the V.C. Summer nuclear plant.
According to the agreement, Westinghouse agrees to cooperate fully and completely with the V.C. Summer criminal investigation until the conclusion of all related criminal prosecutions involving former Westinghouse officials. Federal charges are pending against former Westinghouse manager Carl Churchman and former Westinghouse Senior Vice President for New Plants and Major Projects Jeffrey A. Benjamin. Benjamin will be arraigned in federal court on August 31, 2021.
The agreement further specifies that Westinghouse will contribute an initial $5 million within 30 days to the South Carolina Low-Income Home Energy Assistance Program to help certain ratepayers affected by the project’s failure. A final payment of $16.25 million would be paid by Westinghouse on or before July 1, 2022.
Westinghouse has produced more than three million pages of documents, data, and correspondences to federal investigators; made employee witnesses available for interviews; and provided extensive debriefing sessions on the process and facts developed during the course of the company’s internal investigations related to the project.
Following abandonment of the proposed new nuclear units, Westinghouse was acquired by Brookfield Business Partners. The company has since removed, reassigned, or re-trained Westinghouse senior management; elected new members to the Board of Directors; restructured and re-trained the company’s finance organization; established a global financial controls function; implemented new controls over financial reporting; revised and adopted a global ethics code; elected independent directors for its audit committee; established a corporate controller position; and implemented a new whistleblower program to provide employees with the ability to raise concerns without fear of retaliation.
In addition, Westinghouse – through its former parent company Toshiba – has satisfied $2.168 billion in settlement payments related to the V.C. Summer project, including $1.032 billion to SCANA, $976 million to Santee Cooper, and $160 million to pay various contractor liens.
“Our office continues to seek justice for the victims of the V.C. Summer Project failure,” said Acting U.S. Attorney DeHart. “Westinghouse’s cooperation is vital to our ongoing efforts to hold accountable the individuals most responsible for this debacle. More than $21 million in new low-income ratepayer relief is a strong sign of our commitment to assist those most affected.”
This agreement is the latest development in the ongoing multi-year joint investigation by the U.S. Attorney’s Office, the Federal Bureau of Investigation, the U.S. Securities and Exchange Commission, the South Carolina Attorney General’s Office, and the South Carolina Law Enforcement Division.
Assistant United States Attorneys Winston Holliday, Brook Andrews, Emily Limehouse, and Jason Peavy are prosecuting the case, along with Special Assistant United States Attorney John O’Halloran.
The South Carolina Attorney General’s Office and Westinghouse have reached a similar cooperation agreement. South Carolina Deputy Attorney General Donald J. Zelenka, Senior Assistant Deputy S. Creighton Waters, and Assistant Attorney David Fernandez have been representing the State of South Carolina.
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Two Tacoma men sentenced to lengthy prison terms for gun and drug crimesRead the Press Release
Tacoma – Two Tacoma residents were sentenced today in U.S. District Court in Tacoma to lengthy prison terms for gun and drug-distribution crimes, announced Acting U.S. Attorney Tessa M. Gorman. Tyson Lloyd, 33, was sentenced to 10 years in prison, and Cole Hornbeck, 25, was sentenced to 6 years in prison. Both defendants conspired to distribute controlled substances, including methamphetamine. Both men also illegally possessed firearms in connection with their drug-dealing activity. At the sentencing hearing, U.S. District Judge Benjamin H. Settle said, “There is nothing good about methamphetamine – it destroys lives. People are harmed, people suffer. And not just the user – it is families of users who are harmed as well.”
“These defendants were dealing substantial quantities of methamphetamine – a drug linked to overdoses and deaths nationwide,” said Acting U.S. Attorney Tessa Gorman. “And these defendants conducted their drug business while illegally possessing firearms – a dangerous combination.”
According to the plea agreements, Lloyd supervised Hornbeck as a distributor in his drug-trafficking network. In April 2020, the defendants agreed to sell methamphetamine to a person who, unbeknownst to them, was working with law enforcement. The defendants sold this person $5,000 worth of methamphetamine and made plans for another drug deal the following week. Ultimately, the defendants and a potential supplier were arrested in Auburn, Washington, during a deal for a large quantity of methamphetamine. When law enforcement subsequently searched Lloyd and Hornbeck’s shared residence under a court-authorized search warrant, investigators seized more methamphetamine, cocaine, and other drugs that the defendants planned to distribute. Law enforcement also found two firearms in the residence: a shotgun and a stolen .45‑caliber pistol.
In addition to the drug-conspiracy charges, Lloyd pleaded guilty to possessing firearms as a felon; he has multiple Washington State convictions for crimes such as burglary, car theft, and identity theft. Hornbeck pleaded guilty to possessing firearms as an unlawful user of controlled substances. Both firearm offenses are punishable by up to 10 years in prison.
Lloyd and Hornbeck have been in custody at the Federal Detention Center at SeaTac since their arrests on April 29, 2020. Once they complete their prison terms, Lloyd will serve a five-year term of supervised release, and Hornbeck will serve a four-year term of supervised release.
This case 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 case was investigated by the Drug Enforcement Administration (DEA) Tacoma Resident Office, the Lewis County Joint Narcotics Enforcement Team (JNET), and the Grays Harbor Drug Task Force (GHDTF). The case was prosecuted by Assistant United States Attorney Jonas Lerman.
Two Georgia men sentenced for stealing millions from Synchrony BankRead the Press Release
ATLANTA - Franck Davidoff and Dwight Pearson have been sentenced after pleading guilty to a multi-million-dollar fraud scheme that resulted in a loss of over $2,000,000 to Synchrony Bank.
“These two defendants not only harmed the bank, but the pair also victimized countless businesses and individuals by stealing their information and posing as them to perpetrate a massive bank fraud scheme,” said Acting U.S. Attorney Kurt R. Erskine.“We warn others who might follow their example that this conduct will be prosecuted.”
“The defendants in this case deliberately defrauded scores of innocent citizens out of millions of dollars for their own personal gain,” said U.S. Secret Service Special Agent in Charge Steven Baisel. “With the help of our local law enforcement partners at the Duluth PD, we were able to successfully end their criminal enterprise.”
According to Acting U.S. Attorney Erskine, the charges and other information presented in court: From January 2017 until they were arrested in October 2018, Franck Davidoff and Dwight Pearson conspired to defraud Synchrony Bank in a complicated fraud scheme that netted them over $2 million. The scheme involved using stolen corporate information to open merchant bank accounts at Synchrony Bank.
Specifically, in June 2018, Davidoff and Pearson opened a merchant account with Synchrony Bank in the name “S&G Carpet Stores,” a real business that operates in the state of Florida and used S&G Carpet’s CEO’s information to open the account. At the time the account was created, the pair directed the bank to transfer any funds deposited into the S&G Carpet account into a separate merchant account opened in their own names.
The pair then established $600,000 worth of lines of credit for 57 individuals whose information they stole. The lines of credit appeared to be advance financing for large purchases from S&G Carpet. Once the money was deposited into the S&G Carpet account, it was immediately transferred to the secondary account. Davidoff and Pearson conducted this scheme multiple times using multiple businesses. They targeted businesses in Florida for the merchant accounts. They also targeted residents in a wealthy neighborhood in Florida to use for the fake lines of credit.
For this conduct, they were charged with a wire fraud conspiracy to defraud Synchrony Bank, 13 counts of wire fraud, and seven counts of aggravated identity theft. Each pled guilty to the wire fraud conspiracy and aggravated identity theft.
Franck Davidoff, 34, of Milton, Georgia, has been sentenced to six years, six months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $2,379,178.19. Davidoff was convicted of these charges on March 22, 2021, after he pleaded guilty.
Dwight Pearson, 49, of Johns Creek, Georgia, has been sentenced to seven years in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $2,379,178.19. Pearson was convicted of these charges on May 17, 2019, after he pleaded guilty.
This case was investigated by the U.S. Secret Service and the Duluth Police Department.
Special Assistant U.S. Attorney Diane C. Schulman and former Assistant U.S. Attorney Cassandra Schansman prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Three Men Sentenced to Ten Years in Prison for Marijuana ConspiracyRead the Press Release
COUNCIL BLUFFS, IOWA – Three men, two from Texas, and one from Washington State, were sentenced Friday, August 27, 2021, by United States District Court Chief Judge John A. Jarvey to 120 months in prison. Hieu Minh Le was sentenced to 120 months for Conspiracy to Distribute Marijuana and was found to be an organizer or leader of the conspiracy. Tu Anh Nguyen and Sanh Binh Tran were both sentenced to 60 months for Conspiracy to Distribute Marijuana and Possession with Intent to Distribute Marijuana and 60 months to be served consecutively for Possession of a Firearm in Furtherance of Drug Trafficking. According to court documents, Le, Nguyen, and Tran were found guilty by a jury on April 1, 2021. Their prison terms will be followed by four years of supervised release.
An Iowa State Patrol Trooper stopped Nguyen and Tran, who were driving a truck and trailer registered in Washington, on December 21, 2018, to perform a Commercial Motor Vehicle regulatory inspection. The trooper noticed numerous irregularities with the commercial motor vehicle paperwork, safety equipment, and lack of conformity with commercial motor vehicle industry standards. The trooper also detected an odor of bleach in the trailer and the load was not properly secured. A Council Bluffs Police canine officer and police service dog arrived for a free air sniff. An Iowa Department of Transportation sergeant also assisted with the commercial motor vehicle inspection. The police service dog alerted and indicated to the odor of illegal drugs and the truck and trailer were searched. The officers located 470 pounds of marijuana, numerous boxes containing cartridges of THC oil, and a firearm.
The Iowa Division of Narcotics Enforcement assisted with this investigation and discovered that Le and Nguyen were stopped by a Scott County, Mississippi officer on November 2, 2018, and found in possession of boxes of THC cartridges and $108,000 in United States currency. Le and Nguyen were again stopped by Lincoln, Nebraska Police Department officers on March 1, 2019, and found in possession of $15,000 and a THC cartridge in a different truck and cargo trailer. During the course of the investigation, investigators also determined the business owned by Le, Extra Elbow Grease, was legitimately registered, however the bills of lading paperwork provided by Nguyen and Tran were fraudulent and the business was a front for distributing marijuana across the United States.
Acting United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by Iowa Division of Narcotics Enforcement, Iowa State Patrol, Iowa Division of Intelligence, Iowa Division of Criminal Investigations Crime Laboratory, Council Bluffs Police Department, Iowa Department of Transportation Motor Vehicle Enforcement, Scott County (Mississippi) Sheriff’s Department, Lincoln (Nebraska) Police Department, Lancaster County (Nebraska) Sheriff’s Department, and Douglas County (Nebraska) Sheriff’s Department Crime Lab.
Sutter Health and Affiliates to Pay $90 Million to Settle False Claims Act Allegations of Mischarging the Medicare Advantage ProgramRead the Press Release
SAN FRANCISCO- Sutter Health, a California-based health care services provider, and several affiliated entities including Sutter Bay Medical Foundation (dba Palo Alto Medical Foundation, Sutter East Bay Medical Foundation, and Sutter Pacific Medical Foundation) and Sutter Valley Medical Foundation (dba Sutter Gould Medical Foundation and Sutter Medical Foundation) (collectively, “Sutter Health”), have agreed to pay $90 million to resolve allegations that Sutter Health violated the False Claims Act by knowingly submitting inaccurate information about the health status of beneficiaries enrolled in Medicare Advantage Plans.
Under Medicare Advantage, also known as the Medicare Part C program, Medicare beneficiaries have the option of enrolling in managed health care insurance plans called Medicare Advantage Plans. The Plans are paid a capitated, or per-person, amount to provide Medicare-covered benefits to beneficiaries who enroll in one of their plans. Payments to Plans are based on demographic information and the health status of each plan beneficiary. In general, Plans receive larger payments for beneficiaries with more severe diagnoses.
Sutter Health, headquartered in Sacramento, contracted to provide health care services to California beneficiaries enrolled in certain Plans. In exchange, Sutter Health received a portion of the payments for treating the beneficiaries under its care.
The government alleged that Sutter Health knowingly submitted unsupported diagnosis codes for certain patient encounters for beneficiaries under its care. These unsupported diagnosis codes caused inflated payments to be made to the Plans and to Sutter Health. The lawsuit further alleged that, once Sutter Health became aware of these unsupported diagnosis codes, it failed to take sufficient corrective action to identify and delete additional unsupported diagnosis codes.
“Today’s settlement exemplifies our commitment to fighting fraud in the Medicare program,” said Acting U.S. Attorney Stephanie M. Hinds for the Northern District of California. “Health care providers who flout the law need to know that my office will hold accountable those who pad their bottom line at taxpayer expense.”
“The government relies on health care providers, including those furnishing services to Medicare Part C beneficiaries, to submit accurate information to ensure proper payment,” said Deputy Assistant Attorney General Sarah E. Harrington of the Justice Department’s Civil Division. “Today’s result sends a clear message that we will hold health care providers responsible if they knowingly provide or fail to correct information that is untruthful.”
“The knowing submission of inaccurate information to Medicare diverts funds from this vital health care program, which is a disservice to patients needing care,” said Steven J. Ryan, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will continue to work with our law enforcement partners to protect the integrity of federal health care programs and hold accountable entities who engage in false claims practices.”
In connection with the settlement, Sutter Health, Sutter Bay Medical Foundation, and Sutter Valley Medical Foundation entered into a five-year Corporate Integrity Agreement (CIA) with the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). The CIA requires, among other things, that Sutter Health implement a centralized risk assessment program as part of its compliance program and hire an Independent Review Organization to annually review a sample of Sutter Health’s Medicare Advantage patients’ medical records and associated diagnoses data.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Kathy Ormsby, a former employee of Palo Alto Medical Foundation. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The Act permits the government to intervene in such lawsuits, as it has done in this case as to claims submitted for the Palo Alto Medical Foundation. Although the United States did not intervene as to claims submitted by the remaining Sutter affiliates, Ms. Ormsby continued to pursue those claims, some of which are also being resolved by this settlement. The qui tam case is captioned United States ex rel. Ormsby v. Sutter Health, et al., No. 15-CV-01062-LB (N.D. Cal.).
The resolution obtained in this matter resulted from a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Northern District of California, with assistance from HHS-OIG.
The investigation and resolution of this matter illustrate the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was handled by Assistant U.S. Attorney Benjamin Wolinsky, with assistance from Jonathan Birch, and Department of Justice Fraud Section Attorneys Olga Yevtukhova, Jennifer J. Koh, Thomas Morris, and Lyle Gruby.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Sutter Health and Affiliates to Pay $90 Million to Settle False Claims Act Allegations of Mischarging the Medicare Advantage ProgramRead the Press Release
Sutter Health, a California-based health care services provider, and several affiliated entities including Sutter Bay Medical Foundation (dba Palo Alto Medical Foundation, Sutter East Bay Medical Foundation, and Sutter Pacific Medical Foundation) and Sutter Valley Medical Foundation (dba Sutter Gould Medical Foundation and Sutter Medical Foundation) (collectively, “Sutter Health”), have agreed to pay $90 million to resolve allegations that Sutter Health violated the False Claims Act by knowingly submitting inaccurate information about the health status of beneficiaries enrolled in Medicare Advantage Plans.
Under Medicare Advantage, also known as the Medicare Part C program, Medicare beneficiaries have the option of enrolling in managed health care insurance plans called Medicare Advantage Plans. The plans are paid a capitated, or per-person, amount to provide Medicare-covered benefits to beneficiaries who enroll in one of their plans. Payments to plans are based on demographic information and the health status of each plan beneficiary. In general, plans receive larger payments for beneficiaries with more severe diagnoses.
Sutter Health, headquartered in Sacramento, contracted to provide health care services to California beneficiaries enrolled in certain plans. In exchange, Sutter Health received a portion of the payments for treating the beneficiaries under its care.
The government alleged that Sutter Health knowingly submitted unsupported diagnosis codes for certain patient encounters for beneficiaries under its care. These unsupported diagnosis codes caused inflated payments to be made to the plans and to Sutter Health. The lawsuit further alleged that, once Sutter Health became aware of these unsupported diagnosis codes, it failed to take sufficient corrective action to identify and delete additional unsupported diagnosis codes.
“The government relies on health care providers, including those furnishing services to Medicare Part C beneficiaries, to submit accurate information to ensure proper payment,” said Deputy Assistant Attorney General Sarah E. Harrington of the Justice Department’s Civil Division. “Today’s result sends a clear message that we will hold health care providers responsible if they knowingly provide or fail to correct information that is untruthful.”
“Today’s settlement exemplifies our commitment to fighting fraud in the Medicare program,” said Acting U.S. Attorney Stephanie M. Hinds for the Northern District of California. “Health care providers who flout the law need to know that my office will hold accountable those who pad their bottom line at taxpayer expense.”
“The knowing submission of inaccurate information to Medicare diverts funds from this vital health care program, which is a disservice to patients needing care,” said Special Agent in Charge Steven J. Ryan for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will continue to work with our law enforcement partners to protect the integrity of federal health care programs and hold accountable entities who engage in false claims practices.”
In connection with the settlement, Sutter Health, Sutter Bay Medical Foundation and Sutter Valley Medical Foundation entered into a five-year Corporate Integrity Agreement (CIA) with the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). The CIA requires, among other things, that Sutter Health implement a centralized risk assessment program as part of its compliance program and hire an Independent Review Organization to annually review a sample of Sutter Health’s Medicare Advantage patients’ medical records and associated diagnoses data.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Kathleen Ormsby, a former employee of Palo Alto Medical Foundation. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The Act permits the government to intervene in such lawsuits, as it has done in this case as to claims submitted for the Palo Alto Medical Foundation. Although the United States did not intervene as to claims submitted by the remaining Sutter affiliates, Ms. Ormsby continued to pursue those claims, some of which are also being resolved by this settlement. The qui tam case is captioned United States ex rel. Ormsby v. Sutter Health, et al., No. 15-CV-01062-LB (N.D. Cal.).
The resolution obtained in this matter resulted from a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Northern District of California, with assistance from HHS-OIG.
The investigation and resolution of this matter illustrate the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was handled by Attorneys Olga Yevtukhova, Jennifer J. Koh, Thomas Morris and Lyle Gruby of the Civil Division's Fraud Section and by Assistant U.S. Attorney Benjamin Wolinsky for the Northern District of California, with assistance from Jonathan Birch.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
St. Thomas Man Pleads to Conspiring to Bring over 6 Kilograms of Marijuana Through the Henry E. Rohlsen Airport on St. CroixRead the Press Release
St. Croix, USVI – U.S. Attorney Gretchen C.F. Shappert announced that Jahvar Looby, age 31, of St. Thomas, appeared before Magistrate Judge George W. Cannon, Jr., in U.S. District Court and pleaded guilty today to Conspiracy to Possess Marihuana with Intent to Distribute.
According to court documents, on February 11, 2021, Looby and three other co-conspirators flew into the Henry E. Rohlsen Airport on St. Croix on American Airlines flight number 2003 from Charlotte, North Carolina. Upon their arrival, Customs and Border Protection officers selected several pieces of luggage for physical inspection. The CBP officers observed anomalies while the luggage was examined by an X-ray machine. A subsequent search revealed several clear, vacuum sealed bundles containing a green, leafy substance, which later field-tested positive for marijuana. In total, approximately 6.33 kilograms of suspected marijuana was seized from Looby and his co-conspirators.
Looby is scheduled to be sentenced on December 29, 2021, and faces a maximum penalty of 5 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Customs and Border Protection and Homeland Security Investigations investigated the case.
Assistant U.S. Attorney Daniel H. Huston is prosecuting 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.
St. Croix Woman Sentenced to 2 Years in Federal Prison for Her Role in a Multi-Defendant Tax Fraud SchemeRead the Press Release
St. Croix, USVI – United States Attorney Gretchen C.F. Shappert announced today that Joanne Benjamin, age 41, from St. Croix, Virgin Islands was sentenced on August 26, 2021 in federal court by Judge Wilma A. Lewis to twenty-four months incarceration followed by three years of supervised release for her part in a multi-defendant tax fraud scheme. She pled guilty on March 11, 2021 to Conspiracy to Defraud the United States.
According to the plea agreement filed with the court, from January 2011 to July 2012, Joanne Benjamin and others participated in a scheme to steal money from the United States treasury by fraudulently obtaining federal income tax refunds. The scheme involved the acquisition of personal identifying information of individuals (i.e. name, social security number, and date of birth) used to electronically file falsified tax returns with a designation of refunds to the acquired bank accounts or debit cards. Defendant and her co-conspirators withdrew the deposited refunds, spent them using a debit card, or transferred them to other accounts, all for personal use.
As a result of the scheme, approximately $110,896 of falsely claimed returns was designated for deposit into Defendant’s bank account, of which approximately $80,424.83 was actually deposited therein. The Court also ordered Benjamin to pay restitution of $80,424.83 to the Internal Revenue Service, and her $1000 posted bail bond will be applied toward restitution and a $100 special assessment fee, upon motion of the United States.
Of ten defendants charged in the tax fraud scheme, Benjamin is one of nine to plead guilty. The tenth defendant, Jacinta Gussie, was found guilty in June of 2021 after a six-day trial of Conspiracy to Defraud the United States, four counts of Theft of Government Money, and two counts of Aggravated Identity Theft. Gussie’s sentencing date is pending.
The prosecution of this fraud scheme is the result of years of investigative work by the Internal Revenue Service-Criminal Investigations, which identified and dismantled a massive stolen identity refund fraud scheme perpetrated in the Virgin Islands and elsewhere.
The case was investigated by the Internal Revenue Service, Criminal Investigations, and is being prosecuted by Assistant U.S. Attorney Melissa Ortiz.
Spring Valley internet entrepreneur pleads guilty to federal income tax chargesRead the Press Release
John S. Billhimer, age 40, of Spring Valley, Ohio pleaded guilty today to a one count federal information charging him with filing a false U.S. Individual Income Tax Return, Form 1040, for tax years 2014 through 2017, said Bryant Jackson, Special Agent in Charge of the Internal Revenue Service Criminal Investigation Cincinnati Field Office.
Billhimer owned and operated various businesses which conducted internet sales of aftermarket automobile parts and accessories, and electronics, on eBay and Amazon. As the sole shareholder of these corporations, Billhimer was responsible for reporting any income that he personally received from these corporations on Schedule E of his U.S. Individual Income Tax Return, Form 1040. For tax years 2014 through 2017, Billhimer willfully filed tax returns which fraudulently understated his tax liabilities and caused a tax loss to the United States of $56,000.
“Income, from whatever source derived, is taxable and needs to be properly reported by all taxpayers,” Bryant said. “IRS-CI works everyday to ensure those who don’t pay their fair share are held accountable to the fullest extent possible under the law.”
Billhimer will be sentenced on January 6, 2022 by U.S. District Court Judge Michael J. Newman. The defendant’s sentence will be determined by the Court after review of the factors unique to this case, including the defendant’s prior criminal record, the defendant’s role in the offense and the characteristics of the criminal conduct. In all cases, the sentence will not exceed the statutory maximum (3 years) and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorney Dominick Gerace, following an investigation by the Internal Revenue Service – Criminal Investigation.
Specialized Mining Equipment Thief Sentenced to 33 Months in Federal PrisonRead the Press Release
PITTSBURGH, PA - A former resident of Beckley, West Virginia, has been sentenced in federal court to 33 months’ imprisonment, three years’ supervised release and ordered to pay approximately $2.9 million in restitution on his conviction for stealing specialized mining equipment, Acting United States Attorney Stephen R. Kaufman announced today.
Chief United States District Judge Mark R. Hornak imposed the sentence on Eudell Dickerson, following his April 28, 2021, guilty plea to conspiring to transport across state lines specialized mining equipment from the Commonwealths of Pennsylvania, Virginia, and Kentucky to West Virginia and transporting said equipment from the Commonwealth of Pennsylvania to West Virginia.
According to information presented to the court, five break-ins and thefts occurred in and around February 2017 through May 2017, at mining sites located in the Indiana and Armstrong counties, in the Western District of Pennsylvania. Dickerson admitted, in conjunction with his guilty plea, that he and other individuals, including his co-defendant David Stanley, stole high-value mining equipment, valued at nearly $3 million, from these sites and sold it to a company in the business of selling new and/or used mining equipment in Beckley, West Virginia. Special agents, the court was informed, located some of the stolen equipment at the reseller’s facility and also identified trucks operated by Dickerson and Stanley as those involved in the thefts. Dickerson also admitted that he, and other individuals, were involved in additional thefts at mining sites in Virginia and Kentucky.
The Court noted that the sentence in this case, 33 months, was sufficient but not greater than necessary to achieve the goals of sentencing and tailored to the defendant’s case. Here, the Court noted the seriousness of Dickerson’s conduct – that it was a considerable theft, executed with specificity for only the high-value mining equipment and the impact that it had on the victim companies and their employees. Judge Hornak urged the defendant, who has a substantial criminal history, including other theft-related crimes, to “decide [you are] done with this way of living” when released from custody.
Assistant United States Attorney Rebecca L. Silinski prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Dickerson.
South L.A. Man Pleads Guilty to Federal Charge for Transporting Fireworks, Including Devices That Caused Huge ExplosionRead the Press Release
LOS ANGELES – A South Los Angeles man whose fireworks were detonated by police, leading to a massive explosion that destroyed a specially designed containment vehicle, damaged a neighborhood and injured 17 people, pleaded guilty today to a federal criminal charge.
Arturo Ceja III, a.k.a. “Autron,” 26, pleaded guilty to a single-count information charging him with transportation of explosives without a license.
According to court documents, Ceja made several trips to Nevada in late June to purchase various types of explosives that he transported to his residence in rental vans. Most of the explosives were purchased at Area 51, a fireworks dealer in Pahrump, Nevada. Fireworks in California can be sold for as much as four times what purchasers pay for the fireworks in Nevada. Ceja also purchased homemade explosives – constructed of cardboard paper, hobby fuse and packed with explosive flash powder – from an individual selling the devices out of vehicle, according to court documents.
On June 30, after receiving a tip that fireworks were being stored in Ceja’s backyard, Los Angeles Police officers responded to his residence on East 27th Street. At the house, officers found more than 500 boxes of commercial grade fireworks in large cardboard boxes. The initial investigation by local authorities estimated that approximately 5,000 pounds (2.5 tons) of fireworks were found. But law enforcement later determined that Ceja was storing approximately 32,000 pounds (16 tons) of fireworks on the property.
In addition to the commercial fireworks, the initial search of Ceja’s residence led to the discovery of more than 140 other homemade fireworks as well as explosives-making components, according to court documents.
While the fireworks were being removed from Ceja’s residence, the LAPD Bomb Squad determined that some of the homemade fireworks containing explosive materials were not safe to transport due to risk of detonation in a densely populated area and therefore would be destroyed on scene using a total containment vessel (TCV), according to court documents. During the destruction of the devices, the entire TCV exploded, damaging homes in the neighborhood and injuring a total of 17 law enforcement personnel and civilians.
United States District Judge Fernando M. Olguin has not yet scheduled a sentencing hearing, at which time Ceja will face a statutory maximum sentence of 10 years in federal prison.
The Bureau of Alcohol, Tobacco, Firearms and Explosives; the United States Department of Transportation, Office of Inspector General; and the Los Angeles Police Department investigated this matter.
Assistant United States Attorneys Amanda M. Bettinelli and Erik M. Silber of the Environmental and Community Safety Crimes Section are prosecuting this case.
Sioux Falls Man Sentenced for Making a False Statement in the Acquisition of a FirearmRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Sioux Falls, South Dakota, man convicted of Making a False Statement in the Acquisition of a Firearm was sentenced on August 23, 2021, by U.S. District Judge Karen E. Schreier.
Zachary Taylor Bobbs, age 36, was sentenced to 30 months in federal prison, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Bobbs was indicted by a federal grand jury on September 1, 2020. He pled guilty on June 1, 2021.
The conviction stemmed from an incident on November 8, 2019, when Bobbs knowingly made a false and fictitious written statement to a federally licensed firearms dealer when he tried to purchase a firearm. Said written statement was likely to deceive the firearms dealer. Bobbs falsely indicated on ATF Form 4473 that he had never been convicted of a felony and that he had never been convicted of a domestic violence when, in fact, he had been convicted of both.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Deputy Chief John E. Haak prosecuted the case.
Bobbs was immediately turned over to the custody of the U.S. Marshals Service.
Sioux Falls Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Sioux Falls, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on August 25, 2021, by U.S. District Judge Karen E. Schreier.
Myles Feather Earring, age 37, was sentenced to 24 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Feather Earring was indicted by a federal grand jury on April 6, 2021. He pled guilty on June 8, 2021.
The conviction stems from Feather Earring failing to register as a sex offender as required by federal law between January 7, 2021, and February 9, 2021. Feather Earring had previously been convicted of a sex offense in federal court which requires him to register for the rest of his life.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Feather Earring was immediately turned over to the custody of the U.S. Marshals Service.
Red Lake Man Sentenced to Prison for Possession of an Unregistered FirearmRead the Press Release
ST. PAUL, Minn. – A Red Lake man was sentenced today to 48 months in prison followed by three years of supervised release for possessing an unregistered firearm.
According to court documents, on September 27, 2019, following a 911 call, officers responded to a Red Lake residence and found Keith Wayne Lussier, Jr., 36, in possession of a 12-gauge sawed-off shotgun. Lussier initially refused the officers’ commands to surrender, but ultimately put down the shotgun and was taken into custody.
On November 6, 2020, Lussier pleaded guilty to one count of possessing an unregistered firearm.
Acting U.S. Attorney W. Anders Folk for the District of Minnesota made the announcement after U.S. District Judge Wilhelmina M. Wright sentenced the defendant.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, and Firearms and the Red Lake Department of Public Safety.
This case was prosecuted by Assistant U.S. Attorney Alexander D. Chiquoine.
Readout of Associate Attorney General Vanita Gupta's Call with European Commission Executive Vice-President Margrethe VestagerRead the Press Release
U.S. Associate Attorney General Vanita Gupta this morning spoke with European Commission Executive Vice-President Margrethe Vestager. In their inaugural conversation, the two leaders discussed the Justice Department and European Commission’s mutual interest in promoting competition in a fair, global marketplace and building stronger transatlantic cooperation on justice issues and antitrust enforcement.
They also discussed important ongoing investigations, digital market cases, and policy proposals. Associate Attorney General Gupta also conveyed Attorney General Garland’s strong commitment to an aggressive antitrust enforcement program.
The two leaders agreed to continue to work together to share expertise and ideas between the department and European Commission staff and to deepen cooperation that will benefit the people and economies of both jurisdictions.
Philadelphia Woman Charged with Straw-Purchasing Nearly 20 Handguns in Bucks CountyRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Sharon Jones, 44, of Philadelphia, PA, was arrested and charged by Indictment with one count of dealing in firearms without a license and six counts of making false statements to a Federal Firearms Licensee (FFL) during the purchase of firearms.
The Indictment alleges that between July and September 2020, during six separate transactions, the defendant purchased a total of 19 firearms from a FFL on York Road in Warminster, PA, and that she made false statements during each of the purchases. Specifically, she allegedly certified on an official Firearm Transaction Record that she was the actual buyer, and that she lived at an address on Hartville Street in Philadelphia. According to the Indictment, Jones purchased firearms from manufacturers including Smith & Wesson, Ruger, Sig Sauer, and two .40 caliber Glocks, all for the purpose of reselling them for profit. The defendant was taken into custody and made her initial appearance in federal magistrate court on Friday, August 27.
“The purpose of our ‘All Hands On Deck’ initiative is, first and foremost, to prevent violent crime, which includes targeting for prosecution prolific straw firearms purchasers,” said Acting U.S. Attorney Williams. “This defendant’s alleged actions certainly fit that description. By charging crimes like straw purchasing of firearms, where firearms are purchased in order to turn them over to people who are prohibited from legally buying or possessing them, we can cut off the supply of illegal weapons at the source.”
“ATF remains dedicated to investigating violent crime and disrupting straw purchasing schemes as this indictment alleges,” said Matthew Varisco, Special Agent in Charge of ATF’s Philadelphia Field Division. “Together, with our law enforcement partners, we will continue to take measures to ensure the safety of our communities and stop the flow of guns to individuals who cannot legally purchase them.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
If convicted, the defendant faces a maximum possible sentence of 35 years in prison.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and is being prosecuted by Assistant United States Attorney Justin Oshana.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Sentenced for Distributing Drugs in Butler CountyRead the Press Release
PITTSBURGH, PA – Nasir Sharpe was sentenced to 18 months in prison for distributing fentanyl, heroin, and cocaine within 1,000 feet of a school and playground, Acting United States Attorney Stephen R. Kaufman announced today.
Sharpe, age 23, formerly of Philadelphia, Pennsylvania, was sentenced by United States District Judge Robert J. Colville. Judge Colville ordered that Sharpe serve six years of supervised release following his prison term.
Sharpe moved to Butler County from Philadelphia and distributed fentanyl, heroin, and cocaine for a Butler-based drug trafficking crew between January and March 2020. Sharpe distributed fentanyl, heroin, and cocaine on a regular basis in Butler, including within 1,000 feet of a school and playground, until he returned to Philadelphia and was arrested there following a shootout on a public street in March 2020. Sharpe was on bond throughout this time period with pending charges for 2019 firearm possession crimes in Philadelphia.
Assistant United States Attorneys Yvonne M. Saadi and Craig W. Haller prosecuted this case on behalf of the United States.
The Pennsylvania State Police, the Federal Bureau of Investigation, and the Butler County District Attorney’s Drug Task Force led the investigation leading to the conviction and sentence in this case.
Panama child pornography investigation leads to sentencing of young manRead the Press Release
BROWNSVILLE, Texas – An 18-year-old Brownsville man has been ordered to federal prison for possessing nearly 10,000 of images and videos of child pornography, announced Acting U.S. Attorney Jennifer B. Lowery.
Irbenis Mederos Jr. pleaded guilty April 27.
Today, U.S. District Judge Fernando Rodriguez ordered him to serve a 168-month sentence to be immediately followed by 10 years of supervised release. The court considered statements from many victims describing the trauma they’ve endured. In handing down the sentence, Judge Rodriguez additionally ordered that $36,000 in restitution be paid and divided equally amongst the 12 victims who requested restitution.
On Sep. 28, 2020, authorities discovered the sexual exploitation of a minor child via social media. It was determined she was an eight-year-old U.S. citizen residing in Panama.
The investigation led to an IP address in Brownsville belonging to Mederos. Law enforcement conducted a search at his residence and seized a cellphone. Forensic analysis resulted in the discovery of 1,229 images and 110 videos of child pornography, approximately 55 of which were of the minor female in Panama. Several others also depicted child pornography involving infants and toddlers.
Mederos will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Panama conducted the investigation along with HSI-Rio Grande Valley Child Exploitation Investigation Task Force.
Assistant U.S. Attorney Nikki Piquette is prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Omaha Man Sentenced to 188 Months’ Imprisonment for Possessing with the Intent to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Jan Sharp announced that Daniel Cerna, Sr., age 38, of Omaha, Nebraska, was sentenced today in federal court in Omaha for Possession with Intent to Distribute Methamphetamine. Senior United States District Court Judge Joseph F. Bataillon sentenced Cerna to 188 months’ imprisonment. Cerna also forfeited all rights to $4,251 in U.S. currency seized during the investigation. After completing his term of imprisonment, Cerna will be required to serve an 8-year term of supervised release. There is no parole in the federal system.
On July 19, 2018, Omaha Police Officers executed a search warrant on Cerna’s Omaha residence. Inside officers found Cerna, approximately 23 grams of actual methamphetamine, drug scales, numerous unused baggies, and $4,251 in U.S. currency. While officers were conducting the search, Cerna made a voluntary statement that all the drugs in the house were his.
This case was investigated by the Omaha Police Department.
Mobridge Man Convicted by Federal Jury for AssaultRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that Luke Newton Mowrer, age 31, of Mobridge, South Dakota, was found guilty of Assault by Striking, Beating, or Wounding as a result of a two-day federal jury trial in Aberdeen, South Dakota. He was acquitted of two counts of Assault with a Dangerous Weapon and one count of Assault Resulting in Serious Bodily Injury.
The charge carries a maximum penalty of one year in federal prison and/or a $100,000 fine, one year of supervised release, and a $25 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
Mowrer was indicted by a federal grand jury on March 9, 2021.
The evidence at trial showed that on October 6, 2019, in McLaughlin, South Dakota, Mowrer voluntarily and intentionally assaulted an individual and caused an injury to the person. Mowrer was sitting in the back seat of a pickup truck when he assaulted the driver. He then fled the scene while the victim and others reported the crime and sought medical treatment. The victim suffered a cut to the neck. Mowrer had been drinking with the victim and some other acquaintances before the assault and unexpectedly lashed out in violence.
This case was investigated by the Federal Bureau of Investigation, the Bureau of Indian Affairs, Office of Justice Services, and the Mobridge Police Department. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Sentencing in the case was scheduled for November 15, 2021. The defendant was ordered to self-surrender to the custody of the U.S. Marshals Service on October 5, 2021.
Mineral County attorney sentenced for fraud chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Timothy Mark Sirk, an attorney who lives in Keyser, West Virginia, was sentenced today to three years of probation for a fraud charge, Acting United States Attorney Randolph J. Bernard announced.
Sirk, 63, pleaded guilty in April 2021 to one count of “Wire Fraud.” Sirk, a court-appointed attorney in Mineral County, admitted to submitting at least 33 fraudulent pay vouchers for his alleged public defender legal services. He also admitted to forging the signature of a Circuit Court Judge when submitting these vouchers. The crime occurred from December 2016 to June 2018 in Mineral County.
Sirk was also ordered to pay $34,773.68 in restitution.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The West Virginia State Police investigated.
Chief U.S. District Judge Gina M. Groh presided.
Middlesex County Man Admits Lying in Employment Application with DEARead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man today admitted to lying about his educational background in his application for employment with the Drug Enforcement Administration (DEA), Acting U.S. Attorney Rachael A. Honig announced.
Gulshan Manko, 37, of Woodbridge, New Jersey, pleaded guilty by videoconference before Chief U.S. District Judge Freda L. Wolfson to an information charging him with one count of making false statements to federal agents.
According to documents filed in this case and statements made in court:
Manko submitted an application, referred to as an SF-86 Form, for employment as a federal agent with the DEA. Manko submitted fictitious academic transcripts from two higher education institutions located in New Jersey and represented that he had graduated from these two academic institutions. Manko made these statements in his employment application knowing that they were false in an attempt to gain employment with the DEA.
The count of providing false statements to which Manko pleaded guilty carries a maximum penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Jan. 19, 2022.
Acting U.S. Attorney Honig credited special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas Mahoney, and special agents of the DEA, under the direction of Special Agent in Charge Susan A. Gibson in Newark, with the investigation leading today’s guilty plea.
The government is represented by Assistant U.S. Attorney Ray Mateo of the U.S. Attorney’s Office’s Opioid Abuse Prevention and Enforcement Unit in Newark.
Massachusetts Man Sentenced to 33 Months for Seeking Sex with MinorRead the Press Release
CONCORD - Keith Colantonio, 39, of Milford, Massachusetts was sentenced to 33 months in federal prison for traveling with the intent to engage in illicit sexual conduct, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, in May of 2019, members of the New Hampshire Internet Crimes Against Children Task Force (ICAC) conducted an undercover investigation targeting online sexual offenders. A detective created an undercover online persona of a 14-year-old girl residing in Nashua. Between May 21 and May 23, 2019, Colantonio engaged in sexually-charged conversations on social media with the undercover officer. On May 23, 2019, Colantonio traveled from Massachusetts to Nashua for the purpose of meeting the young girl to engage in illicit sexual conduct. When Colantonio arrived at the pre-determined location for the meeting, he was arrested.
Colantonio previously pleaded guilty on March 23, 2021.
“Dangerous predators lurk on the internet seeking to manipulate and sexually exploit young children,” said Acting U.S. Attorney Farley. “Thanks to good criminal investigative work, this defendant was unable to fulfill his unlawful goal of having sex with a young girl. As this case demonstrates, we work closely with our law enforcement partners to identify and prosecute the criminals who threaten the well being of children in the Granite State.”
“We’re very satisfied with today’s sentence for this child sex predator who posed a clear threat to our communities based on his actions in this investigation” said Matthew B. Millhollin, Special Agent in Charge, Homeland Security Investigations, (HSI) Boston. “Colantonio would likely have continued to victimize others were it not for the tireless work of our partners in the New Hampshire Internet Crimes Against Children Task Force. We also appreciate the continuing commitment of the U.S. Attorney for New Hampshire in seeking justice for the victims of child predators in our region.”
“The New Hampshire Internet Crimes Against Children Task Force is proud to partner with our Federal Law Enforcement partners at Homeland Security Investigations and the US Attorney’s Office in an effort to protect the children of New Hampshire. NH ICAC would like to remind parents to stay vigilant and talk with your children about their online activity. For more information please visit www.missingkids.org” said Lt. Eric Kinsman, Commander, NH ICAC Task Force.
This matter was investigated by the New Hampshire Internet Crimes Against Children Task Force and Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorney Cam Le.
In February 2006, the Department of Justice introduced 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 about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Maryland man sentenced for firearms offenseRead the Press Release
MARTINSBURG, WEST VIRGINIA – Alieu Crayton, of Silver Spring, Maryland, was sentenced today to 57 months of incarceration for a firearms charge, Acting U.S. Attorney Randolph J. Bernard announced.
Crayton, 22, pleaded guilty in September 2020 to one count of “Unlawful Possession of Firearms.” Crayton, a person prohibited from having firearms because of a prior conviction, admitted to having two pistols in October 2019 in Berkeley County.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Chief U.S. District Judge Gina M. Groh presided.
Maryland Man Pleads Guilty to Defrauding Customers in Scam Involving Fake Sales of PuppiesRead the Press Release
WASHINGTON – A Maryland man who advertised the sale of pit bull puppies on various websites pleaded guilty today to a scheme in which he generated at least $158,000 in money transfers from more than 100 victims who never got the dogs.
The guilty plea was announced by Acting U.S. Attorney Channing D. Phillips and Raymond Villanueva, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Washington, D.C.
Fonjeck Eric Azoh, 42, of Mount Rainier, Md., pleaded guilty to wire fraud. The charge carries a statutory maximum of 20 years in prison and potential financial penalties. As part of the plea agreement, Azoh agreed that a restitution order of at least $158,000 is appropriate in the case. He also agreed to forfeit $67,000 seized by law enforcement during the investigation and pay an additional $92,000 forfeiture money judgment. Azoh will be sentenced in the U.S. District Court for the District of Columbia on Nov. 17, 2021, by the Honorable Carl J. Nichols.
According to the government’s evidence, between January 2019 and October 2020, Azoh offered the pit bull puppies, using various websites. He agreed to sell these puppies to victims living throughout the United States even though he never intended to provide them. Azoh directed victims to send money to him through money transfer businesses, which he then collected at retail stores and elsewhere. Throughout the scheme, Azoh collected at least $158,000 from at least 119 victims who lived in 40 different states.
Azoh was arrested in January 2021 and has been in custody ever since.
In announcing the plea, Acting U.S. Attorney Phillips and Special Agent in Charge Villanueva commended the work of those who investigated the case from HSI. They also expressed appreciation for the work of those who handled the case at the U.S. Attorney’s Office, including Assistant U.S. Attorney John W. Borchert, who prosecuted the case.
Marion County Woman Sentenced to Prison for Defrauding her Employer of $550,000Read the Press Release
DES MOINES, IA – On August 30, 2021, United States District Court Judge Rebecca Goodgame Ebinger sentenced Melissa Deann Authier, age 36, of rural Pleasantville, to 33 months in prison for Wire Fraud announced Acting United States Attorney Richard D. Westphal. Authier was ordered to serve three years of supervised release to follow her prison term and pay Jolly Farms, Inc. $550,000 in restitution.
According to court documents, Authier was hired by Jolly Farms in early 2016 to provide bookkeeping services in support of a farming operation and tiling business that operated from rural Pleasantville. From early 2016 and continuing through February 2019, Authier devised and participated in a scheme to defraud Jolly Farms of monies. In total, Authier directed $550,000 of Jolly Farms’ monies to her own benefit without authorization. Authier stole through various means, including by paying Authier’s and Authier’s husband’s credit cards with Jolly Farms’ monies without authorization. Authier also repeatedly used, without authorization, credit cards issued to Jolly Farms to charge purchases and services that were for the benefit of Authier and her family; Authier then paid for those bills with Jolly Farms’ monies. In addition, Authier issued unauthorized paychecks to herself.
This case was investigated by the Federal Bureau of Investigation and the Marion County Sheriff’s Office. This case was prosecuted by Assistant United States Attorney Adam J. Kerndt.