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27 August 2021
Norfolk Man Sentenced for Role in Colonial Heights Armed RobberyRead the Press Release
RICHMOND, Va. – A Norfolk man was sentenced today to over 14.5 years in prison for his role in a violent armed robbery of a Sprint Store in Colonial Heights.
According to court records and evidence presented at trial, on the afternoon of January 7, 2019, Ronnell Kareen Levon Johnson, 28, and his co-conspirator, Tajh Rodgers, 32, of Norfolk, traveled from the Norfolk area to Colonial Heights to commit an armed robbery of a Sprint Store. During the robbery, Rodgers brandished a loaded .40 caliber Ruger semi-automatic pistol and forced two employees into a back room of the store, where he let Johnson in through the back entrance. Johnson entered the store and started gathering Sprint Store merchandise into a bag.
Johnson and Rodgers then held the employees hostage in the back room, and attempted to tie up both victims while they completed the robbery. Due to a time-delay lock on the store’s safe, the defendants had to wait approximately 20 minutes for the safe to open. During that time, two separate customers entered the front of the store. Rodgers let one of the employees assist each customer, along with a warning that the employee would be killed if he tried to alert anyone about the crime. The employee followed those instructions and the final customer left without incident. Minutes after the second customer departed, the time-delay lock on the safe opened, allowing Johnson and Rodgers to steal dozens of cellular telephones and other store merchandise valued at approximately $25,000.
During a court-authorized search of Rodgers’s residence, officers recovered the loaded .40 caliber Ruger semi-automatic pistol used in the robbery, various stolen Sprint Store items, and other evidence. Using toll records and cellular tower data, law enforcement later identified Johnson as Rodgers’s co-conspirator in the armed robbery based on Johnson’s travel to and from the Colonial Heights Sprint Store on January 7, 2019, along with other evidence.
Johnson was sentenced today to 175 months in prison. On May 28, a federal jury in Richmond convicted Johnson on one count of robbery affecting commerce. Rodgers pleaded guilty on October 22, 2019 to the Colonial Heights armed robbery as well as three charges of possessing a firearm in furtherance of drug trafficking. Rodgers was sentenced to 28 years imprisonment on January 9, 2020 for his role in the armed robbery and other unrelated criminal conduct.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Charlie J. Patterson, Special Agent in Charge of the ATF’s Washington Field Division; Colonel Gary T. Settle, Superintendent of Virginia State Police; and Colonel Jeffrey W. Faries, Chief of Colonial Heights Police, made the announcement after sentencing by Senior U.S. District Judge Robert E. Payne. Assistant U.S. Attorneys Kenneth R. Simon, Jr. and Michael Gill prosecuted the case.
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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:20-cr-133.
New Bedford Man Sentenced to Five Years in Prison for Role in Cocaine ConspiracyRead the Press Release
BOSTON – A New Bedford man was sentenced yesterday in federal court in Boston for his role in a cocaine trafficking conspiracy.
Jason Valliere, 43, was sentenced by U.S. Chief District Court Judge F. Dennis Saylor IV to five years in prison and four years of supervised release. On March 26, 2021, Valliere pleaded guilty to conspiracy to distribute cocaine.
In October 2020, Valliere was charged along with three co-conspirators for negotiating and coordinating a multi-kilogram cocaine deal with undercover agents. Initially, Valliere sought to negotiate for 10 kilograms of cocaine by offering cash as well as armed manpower (his co-conspirators). Subsequent renegotiations ultimately resulted in the deal of at least one and up to three kilograms of cocaine. At the time of Valliere’s arrest, law enforcement recovered a loaded firearm that was concealed in a compartment in Valliere’s car. The firearm matched a description that Valliere previously had given to undercovers of a gun he could bring to the anticipated drug deal.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolanta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Suffolk County Sheriff Steven W. Tompkins; Bristol County Sheriff Thomas M. Hodgson; Boston Police Acting Commissioner Gregory Long; Brockton Police Chief Emanuel Gomes; Bridgewater Police Chief Christopher D. Delmonte; East Bridgewater Police Chief Paul O’Brien; and Westport Police Chief Keith Pelletier made the announcement. Valuable assistance was provided by the Fall River Police Department. Assistant U.S. Attorney Kaitlin O’Donnell of Mendell’s Organized Crime and Gang Unit prosecuted the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Michael Gonzalez Indicted for Stealing Five Tesla Vehicles Worth over $600,000 – Including a Tesla that Burned on Lake ChamplainRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Michael A. Gonzalez, 32, of Colchester, Vermont appeared today in federal court after being charged with five counts of possessing and selling stolen motor vehicles. Gonzalez was ordered detained by United States Magistrate Judge Kevin J. Doyle pending a detention hearing next week.
According to the indictment filed in the case, between September 2018 and January 2021, Gonzalez obtained five Tesla vehicles worth a total of approximately $607,000 from dealerships in New Jersey, New York, Massachusetts, and Florida. For each vehicle, Gonzalez made an initial payment of approximately $2,500, and then arranged for electronic funds transfers to cover the balance of the vehicle’s price from accounts with insufficient funds or from fictitious accounts. Gonzalez took delivery of the vehicles from Tesla before Tesla discovered his failure to complete the final payments. Gonzalez resold or attempted to resell four of the five vehicles. Gonzalez was never issued the necessary paperwork to resell the fifth vehicle, which subsequently burned on a frozen portion of Shelburne Bay on February 24, 2019. Gonzalez attempted to claim insurance funds for the value of this burned Tesla, but the insurance claim was denied.
On August 26, 2021, a federal Grand Jury sitting in Burlington, Vermont returned a five-count indictment against Gonzalez for the sale and possession of stolen motor vehicles. If convicted, Gonzalez faces up to ten years in custody on each count. The actual sentence would be determined in relation to the Federal Sentencing Guidelines with consideration of the nature and circumstances of the offense and Gonzalez’s personal history. The Acting United States Attorney noted that the charges in the indictment are merely accusations, and that the defendant is presumed innocent unless proven guilty.
Acting U.S. Attorney Jonathan A. Ophardt credited the United States Secret Service and the Vermont Department of Motor Vehicles – Enforcement and Safety Division for their work investigating the matter.
The United States is represented in this matter by Assistant U.S. Attorney Jeffrey W. Davis. Chandler Matson, Esq. represents the defendant.
Member of Gregory Butler Drug Trafficking Organization Pleads Guilty to His Role in the Drug Distribution ConspiracyRead the Press Release
Baltimore, Maryland – Tirrel Saunders, a/k/a “Pretty”, age 35, of Baltimore, Maryland, pleaded guilty today to conspiracy to distribute controlled substances. Saunders was a member of the Gregory Butler Drug Trafficking Organization (“Butler DTO”) which distributed heroin, fentanyl, cocaine, and crack cocaine in Maryland, Virginia, West Virginia, and Pennsylvania.
The guilty plea was announced by Acting 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; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; Chief Marcus Jones of the Montgomery County Police Department; and Commissioner Michael Harrison of the Baltimore Police Department.
According to his guilty plea, from October 2018 through April 2019, FBI intercepted phone communications of the Butler DTO that operated in and around the Baltimore area, using phones to arrange heroin, crack cocaine, and fentanyl sales to drug users and redistributors from Maryland, Virginia, and West Virginia, and Pennsylvania.
The Butler DTO sold thousands of dollars in narcotics on a daily basis. For example, intercepted phone communications revealed that the Butler DTO frequently sold over 100 grams of heroin mixed with fentanyl on a daily basis. Customers of the Butler DTO believed they were purchasing heroin, but the Butler DTO adulterated all heroin it sold with fentanyl. Street-level distributors in the Butler DTO worked in shifts and shared phones they used to communicate with Butler DTO leadership and customers.
As stated in the plea agreement, investigative efforts identified Saunders as a Butler DTO supervisor and manager. In this capacity, Saunders managed daily supplies of narcotics and the collection of drug proceeds from distributors. FBI investigators intercepted Saunders regularly arranging to resupply co-conspirators with heroin and crack cocaine which they sold to drug customers. Saunders also communicated with Butler DTO leadership and acted as a liaison between Butler DTO leadership and street-level distributors.
Saunders agreed that over the course of the conspiracy, he distributed over one kilogram of heroin to street-level distributors.
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.
This case is also 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. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Saunders and the government have agreed that, if the Court accepts the plea agreement, Saunders will be sentenced to 15 years in federal prison. U.S. District Judge Paul W. Grimm has scheduled sentencing for November 19, 2021 at 1 p.m.
Acting United States Attorney Jonathan F. Lenzner commended the FBI, DEA, Montgomery County Police Department, and the Baltimore Police Department for their work in the investigation.
Mr. Lenzner also recognized the U.S. Postal Inspection Service; the City of Rockville Police Department; the Baltimore County, Howard County, and Montgomery County Police Departments; the Frederick County Sheriff’s Office; the Maryland State Police; the West Virginia State Police; the Virginia State Police; the Warren County (VA) Sheriff’s Department; the Winchester (VA) and Front Royal (VA) Police Departments; and the Frederick County and Howard County State’s Attorney’s Offices for their assistance. Mr. Lenzner thanked Assistant U.S. Attorney Matthew DellaBetta, who is prosecuting the case.
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Media Advisory: In-Person Press Conference in Sampson CountyRead the Press Release
WHEN: Monday, August 30, 2021 at 2:00 p.m.
WHERE: Sampson County Sheriff’s Office
112 Fontana Street
Clinton, NC 28328
Re: Clinton Kidnapping Case
The United States Attorney’s Office announces a press conference to discuss the successful prosecution of the 5 defendants involved in the Clinton kidnapping case, that resulted in the resolution of the kidnapping along with a shooting that injured 2 juveniles. This case also led to murder charges in the death of Jimmy Graham.
In addition to Acting United States Attorney G. Norman Acker, III, we anticipate Sampson County Sheriff Jimmy Thornton, Interim Clinton Police Chief Anthony Davis, Resident Agent in Charge (RAC) Shawn Stallo of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and District Attorney Ernie Lee to participate in this event.
Credentialed members of the media are invited to attend. For additional information, and to RSVP your intentions to attend this event, please email Don Connelly at [email protected].
Lynn Man Pleads Guilty to Bank Fraud Conspiracy and Identity TheftRead the Press Release
BOSTON – A Lynn man pleaded guilty yesterday in connection with his involvement in a scheme to defraud several financial institutions and obtain money from their customers using fraudulent identification documents.
Emeka Iloba, 27, pleaded guilty to one count of conspiracy to commit bank fraud and one count of aggravated identity theft. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Dec. 16, 2021. Iloba was charged with an alleged co-conspirator on March 15, 2021.
As stated during the plea hearing, Iloba participated in and at times directed a scheme to defraud financial institutions. To carry out the scheme, Iloba and others used fraudulent identification documents, among other means, to withdraw money from customers’ accounts at various banks in the form of checks, cash and wire transfers. The fraudulently-obtained funds were then deposited in other bank accounts opened in the names of fictitious business entities before being withdrawn. According to the charging documents, this scheme resulted in over $1.5 million in losses between April 2017 and March 2018.
The charge of conspiracy to commit bank fraud provides for a sentence of up to 30 years in prison, up to five years of supervised release and a fine of $1 million. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutively to any other sentenced imposed, one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolanta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division, made the announcement. Assistant U.S. Attorneys Leslie A. Wright and Christopher J. Markham of Mendell’s Securities, Financial & Cyber Fraud Unit are prosecuting the case.
Louisiana Doctor Indicted for Illegally Dispensing over One Million Doses of Opioids and for $5.1 Million Health Care Fraud SchemeRead the Press Release
A federal grand jury in New Orleans, Louisiana, returned an indictment today charging a Louisiana physician for his role in distributing over 1,200,000 doses of Schedule II controlled substances, including oxycodone and morphine, outside the scope of professional practice and not for a legitimate medical purpose, and for maintaining his clinic for the purpose of illegally distributing controlled substances. Today’s indictment also charges the physician with defrauding health care benefit programs, including Medicare, Medicaid, and Blue Cross and Blue Shield of Louisiana, of more than $5,100,000, given that the opioid prescriptions were filled using health insurance benefits.
According to court documents, Adrian Dexter Talbot, M.D., 55, of Slidell, owned and operated a medical clinic located in Slidell that accepted cash payments from individuals seeking prescriptions for Schedule II controlled substances. In 2015, Talbot took a full-time job in Pineville, Louisiana, and although he was no longer physically present at the Slidell clinic, he pre-signed prescriptions to be distributed to individuals there without seeing or examining those individuals. In 2016, Talbot hired another practitioner who also pre-signed prescriptions to be distributed in the same manner at the Slidell clinic. With Talbot’s knowledge, individuals were filling their prescriptions that were issued outside the scope of professional practice and not for a legitimate medical purpose using their insurance benefits, thereby causing health care benefit programs to be fraudulently billed for filling prescriptions that were written without an appropriate patient examination or determination of medical necessity for the prescription.
Talbot is charged with one count each of conspiracy to unlawfully distribute and dispense controlled substances, maintaining a drug-involved premises and conspiracy to commit health care fraud, as well as four counts of unlawfully distributing and dispensing controlled substances. The defendant is scheduled for his initial court appearance Sept. 10 before U.S. Magistrate Judge Michael B. North of the U.S. District Court for the Eastern District of Louisiana. If convicted, he faces a maximum penalty of 10 years for conspiracy to commit health care fraud and 20 years each for all other counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; U.S. Attorney Duane A. Evans for the Eastern District of Louisiana; Special Agent in Charge Douglas A. Williams Jr. of the FBI’s New Orleans Field Office; Special Agent in Charge Miranda Bennett of the Department of Health and Human Services, Office of Inspector General (HHS-OIG); and Special Agent in Charge Jeffrey Breen for the Department of Veterans Affairs, Office of Inspector General (VA-OIG) made the announcement.
The FBI, HHS-OIG, VA-OIG, and the Louisiana Office of the Attorney General’s Medicaid Fraud Control Unit are investigating the case.
Trial Attorney Sara E. Porter of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David Howard Sinkman of the Eastern District of Louisiana are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
KC Man Pleads Guilty to Shooting Female Z-Trip Driver 26 Times During RobberyRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man pleaded guilty in federal court today to the armed robbery of a female Z-Trip driver whom he shot approximately 26 times with a rifle from the back seat.
Derron D. Nevels, 20, pleaded guilty before U.S. District Judge Howard F. Sachs to one count of robbery and one count of discharging a firearm during a violent crime.
Nevels was picked up by a Z-Trip driver on Wabash Avenue in Kansas City, Mo., on the evening of Dec. 4, 2018. The Z-Trip taxi in which the crime was committed is equipped with interior and exterior cameras. The cameras show Nevels getting into the rear passenger seat at approximately 8 p.m. The Z-Trip driver took him to Benton Avenue in Kansas City, Mo.
When they arrived at the destination, they waited in the vehicle for somebody to bring out the fare. When a second suspect approached the vehicle, Nevels held a Smith and Wesson Military & Police .22-caliber rifle up to the victim’s head and demanded she give him everything. The victim attempted to explain that Nevels was being recorded, to which Nevels responded, “I don’t care; give me everything.” Nevels also appeared to be taking a photo or video with his cell phone.
The victim turned toward the back seat and grabbed onto the rifle, and a struggle ensued. The second suspect hit the victim in the face, then reached around the driver’s seat and began striking the victim in the back and the back of the victim’s head. The victim released Nevels’ rifle and then Nevels leaned back in his seat, chambered a live round, and opened fire on the victim from close range. Nevels fired approximately 26 times into the victim. Nevels and his accomplice then ran from the scene.
About 10 minutes later, Nevels and another suspect returned to the victim’s vehicle to retrieve a cell phone Nevels had left behind when he fled from the scene of the earlier robbery and assault. Nevels can be heard on the Z-Trip vehicle’s video asking the victim if she is okay. The victim indicates she has been shot. Nevels asked the victim if she had called the police. He got into the rear driver’s side of the taxi and picked up the cell phone, then left the scene.
When police officers arrived, the victim was transported to an area hospital in critical condition. According to court documents, she continues to suffer from her serious and debilitating injuries inflicted by Nevels.
Investigators used cell phone and Facebook data to identify Nevels and the distinctive rifle he used in the robbery. On Dec. 10, 2018, Nevels was seen getting onto a bus near Prospect Avenue and Swope Parkway. Nevels was arrested when he got off the bus at 11th Street and Grand Avenue. Nevels was carrying the loaded rifle hidden in his waistband with the barrel going down his right pant leg. The rifle was later positively identified as the weapon used to shoot the Z-Trip driver during the robbery.
Co-defendants Bailee Anna Maria Prieto, 21, of Kansas City, Kansas, and Melani Yitzel Collazo Jimenez, also known as “Mel,” 23, of Kansas City, Mo., have each pleaded guilty to being accessories after the fact to the robbery.
Prieto used or allowed her phone to be used to order the Z-Trip that was robbed. Prieto disposed of her phone after the robbery to avoid the police searching it.
Jimenez went to the scene to help Nevels retrieve his telephone from the Z-Trip where he left it after the robbery and shooting. Jimenez provided her apartment for Nevels, Prieto, and others to stay the night after the robbery.
Neither Prieto nor Jimenez reported anything to law enforcement. The two of them communicated with and were associated with Nevels and others, before, during, and after the robbery and shooting.
Under federal statutes, Nevels is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. Prieto and Jimenez are each subject to a maximum sentence of up to 10 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 defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Kansas City, Mo., Police Department and the FBI.
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.
Jury Convicts Recidivist Defendant of Possessing Child PornographyRead the Press Release
A federal jury in the Eastern District of Virginia convicted a Virginia man yesterday for possession of child pornography.
According to court documents and evidence presented at trial, James B. Clawson Sr., 58, of Alexandria, was previously convicted of distribution of child pornography after law enforcement learned that he was serving as an administrator of an online forum dedicated to trafficking in child sexual abuse material. In 2019, while Clawson was serving a term of federal supervised release in connection with this conviction, a U.S. probation officer discovered that he was concealing a laptop computer and multiple thumb drives in his home. Clawson told the probation officer that he had built a hidden compartment in a shelving unit in his closet to conceal the devices because he did not want to have his internet activity monitored.
“James Clawson is a repeat child sex offender who has demonstrated that he cannot and will not be deterred from downloading images and videos depicting the sexual abuse of children,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The department is committed to working closely with our law enforcement partners to ensure that child sex offenders like Clawson will be held accountable for their crimes.”
“The evidence at trial demonstrated that the defendant’s prior conviction for distributing child pornography unfortunately did not deter him from continuing to seek out such heartbreaking and illegal images,” said Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia. “Thanks to the diligent efforts of the trial team and our law enforcement partners, the defendant has been held accountable for his recidivist conduct by a jury of his peers.”
“Child exploitation sites present a grave danger to children and unprecedented challenges to the world’s law enforcement agencies,” said Assistant Director Calvin Shivers of the FBI’s Criminal Investigative Division. “Today’s verdict demonstrates the FBI’s ongoing commitment to pursue individuals engaging in child exploitation offenses and secure justice for children that are victimized by this egregious conduct.”
“Recidivism is a real problem among convicted sex offenders,” said Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office. “As this jury verdict shows, the FBI is committed to bringing individuals like Clawson – who continued to exploit children even after they have been caught once – to justice no matter what it takes. The safety of our children is a priority for the FBI, and we will stop at nothing to protect them.”
Evidence presented at trial established that Clawson used the laptop to search for and repeatedly download from the internet images and videos of minors engaged in sexually explicit conduct and then stored those images on one of his thumb drives. The evidence further established that Clawson sorted these child sexual abuse images on his thumb drive and assigned them files names based on the specific sexually explicit conduct they depicted.
Clawson was convicted of possession of child pornography. He is scheduled to be sentenced on Dec. 1 and faces a mandatory minimum sentence of 10 years in prison and a maximum of 20 years in prison. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI investigated the case, with significant assistance from the High Technology Investigative Unit of the Justice Department Criminal Division’s Child Exploitation and Obscenity Section (CEOS).
Trial Attorney William G. Clayman of CEOS and Assistant U.S. Attorney Seth M. Schlessinger of the Eastern District of Virginia are prosecuting the case.
This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force. The task force is composed of FBI agents, along with other federal agents and detectives from northern Virginia and the District of Columbia. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children and those engaged in human trafficking.
Judge sentences Tennessee man to 27 months for wire fraud in investment fraud schemeRead the Press Release
ST. LOUIS – United States District Judge Stephan R. Clark sentenced Joshua McDonald to a 27- month term of imprisonment to be followed by a 3-year term of supervised release. The defendant had previously pleaded guilty in April to four counts of wire fraud.
McDonald was the owner and operator of Perfection PR Firm LLC, that conducted business in the Eastern District of Missouri. McDonald told potential and actual clients that Perfection PR traded in the Foreign Exchange Market (Forex) for clients by pooling their funds.
McDonald was not registered as a broker-dealer, broker-dealer agent, investment advisor, investment advisor representative, or an issuer agent as required by FINRA (Financial Industry Regulatory Authority).
Beginning in November 2017 and continuing to June 2019, McDonald devised a scheme to defraud and to obtain money by means of materially false and fraudulent pretenses, representations and promises. McDonald falsely told prospective clients that he would provide a minimum of 20% to 50% return per month on their Forex investments. McDonald further falsely told investors that they had made substantial gains in their Forex investments with him when, in fact, he had used their funds on his own personal expenses and, without their knowledge or consent, invested and lost their funds in cryptocurrency. McDonald directed investors to deposit their Forex investments funds, primarily through wire transfers, into his personal bank account or the Perfection PR bank account. McDonald caused over $350,000 in loss to numerous victims of his scheme.
The Federal Bureau of Investigation investigated the case.
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Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Aug. 24 was:
Solomon Anthony Gardner, 41, of Billings, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Gardner faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Gardner was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-50.
Matthew Dallas Lee, 33, of Billings, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Lee faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Lee was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-52.
Appearing on Aug. 26 was:
Preston Tucker Baumann, 24, a transient, on charges of prohibited person in possession of a firearm and ammunition. If convicted of the most serious crime, Baumann faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Baumann was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-56.
Robert Allen Williams, 57, of Oregon, on charges of conspiracy to possess with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, Williams faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. William was detained pending further proceedings. The Drug Enforcement Administration and Montana Highway Patrol investigated the case. PACER case reference. 21-64.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Aug. 23 was:
Taurean Jerome Weber, 39, of Lakewood, Colorado, formerly of Missoula, on charges of transportation of child pornography, distribution of child pornography and receipt of child pornography. If convicted of the most serious crime, Weber faces a mandatory minimum five years to 20 years in prison, a $250,000 fine and five years to life of supervised release. Weber was released pending further proceedings. The Missoula Police Department, FBI and Montana Internet Crimes Against Children Task Force investigated the case. PACER case reference. 21-28.
Jeremy Michael Rivers, 44, of Anaconda, on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, Rivers faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release. Rivers was detained pending further proceedings. The Drug Enforcement Administration, Montana Division of Criminal Investigation, Homeland Security Investigations and U.S. Postal Service investigated the case. PACER case reference. 21-23.
Anthony Wayne Lamere, 23, of Butte, on charges of conspiracy to possess with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, Lamere faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Lamere was detained pending further proceedings. The Drug Enforcement Administration, Montana Division of Criminal Investigation and U.S. Postal Service investigated the case. PACER case reference. 21-24.
Kathy Ann Hendrickson, 59, of Walla Walla, Washington, on charges of cyberstalking. If convicted of the most serious crime, Hendrickson faces a maximum five years in prison, a $250,000 fine and three years of supervised release. Hendrickson was released pending further proceedings. The FBI investigated the case. PACER case reference. 21-32.
Appearing in Great Falls U.S. Magistrate Judge John T. Johnston and pleading not guilty on Aug. 24 was:
Edward James Hovey, 30, of Browning, on charges of receipt of child pornography. If convicted of the most serious crime, Hovey faces a mandatory minimum five years to 20 years in prison, a $250,000 fine and five years to life of supervised release. Hovey was detained pending further proceedings. The FBI and Blackfeet Law Enforcement Services investigated the case. PACER case reference. 21-50.
Rhonda Jeanette Lapier, aka Rhonda Trench, 49, of Helena, on charges of conspiracy to possess with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, Lapier faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Lapier was detained pending further proceedings. The FBI, Great Falls Police Department, Cascade County Sheriff’s Office and Lewis & Clark County Sheriff’s Office investigated the case. PACER case reference. 21-52.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Houston man charged in Memorial Drive theftsRead the Press Release
HOUSTON – A 26-year old Houston man has been arrested in connection with a string of mail thefts occurring recently in the Memorial Drive area of the city, announced Acting U.S. Attorney Jennifer B. Lowery.
A criminal complaint charges Tony Morris Jr. with theft of mail and bank fraud. Authorities took him into custody today. He is scheduled to make his initial appearance before U.S. Magistrate Judge Peter Bray.
Checks worth $497,335.53 had allegedly been stolen from a U.S. Postal Service collection box located on the 12500 block of Memorial Drive in Houston. The charges allege vehicles linked to Morris were observed at the location on approximately nine occasions and believed to be associated with the thefts.
Morris allegedly cashed checks stolen from the collection box on three occasions.
If convicted, he faces up to 30 years in federal prison and a $1 million maximum.
The U.S. Postal Inspection Service conducted the investigation with the assistance of police departments in Memorial Village Hedwig Village.
A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Hospital to Pay More Than $3 Million to Settle Whistleblower SuitRead the Press Release
Tarrant County’s John Peter Smith Hospital (JPS) has agreed to pay more than $3.3 million to settle allegations that it violated the False Claims Act by upcoding certain claims submitted to federal healthcare programs, Acting U.S. Attorney Prerak Shah announced today.
The settlement resolves a whistleblower suit filed in 2018 by JPS’s former Director of Compliance Erma Lee, whose complaint asserted that the hospital improperly appended billing modifiers -25, -59, and -XU to hundreds of claims in order to obtain payments to which it was not entitled.
Used properly, these billing modifiers indicate that a provider administered significant care on the same day as another medical procedure that was above and beyond the preoperative and postoperative care “bundled” into the main procedure code.
In her amended complaint, filed in September 2020, Ms. Lee alleged that she alerted hospital leadership that JPS had been improperly adding these modifiers to claims between 70 and 95 percent of the time, in essence routinely double billing for certain aspects of patients’ care. Nevertheless, she claimed, JPS failed to reimburse payors for overpayment stemming from these improperly coded claims.
“When company executives ignored this whistleblower's concerns about improper billing, she took them to the court,” said Acting U.S. Attorney Prerak Shah. “We are proud of the citizens who speak out to protect our federal healthcare programs.”
The allegations resolved by this settlement were originally filed under the qui tam provisions of the False Claims Act, which permits private persons with evidence of fraud to sue on behalf of the government and to share in any proceeds.
Under the Act, the United States may intervene in such an action or permit the whistleblower to pursue it. Although the United States elected not to intervene in the case, it investigated Ms. Lee’s allegations and worked collaboratively with the relator and her counsel in their pursuit and resolution of this case.
Ms. Lee will receive $912,635 as her statutory share of the settlement proceeds.
This matter was handled on behalf of the government by Assistant U.S. Attorney Andrew Robbins on behalf of the Office of the Inspector General for the Department of Health and Human Services.
The case is captioned United States ex rel. Lee v. Tarrant County Hospital District, case no. 4:19-CV-00412-P (N.D. Tex.). The claims settled by this agreement are allegations only and do not constitute a determination of liability.
Grand Island Woman Sentenced for Possession of Methamphetamine with Intent to DistributeRead the Press Release
Acting United States Attorney Jan Sharp announced that Andrea Gall, 22, of Grand Island, Nebraska, was sentenced today by United States District Court Judge John M. Gerrard to 10 years in federal prison for possessing 50 grams or more of actual or pure methamphetamine with the intent to distribute. Following her prison term, Gall will serve five years on supervised release. There is no parole in the federal system.
On October 4, 2019, Jose Negrete was on probation and a state probation officer stopped by Andrea Gall’s and Negrete’s house in Grand Island to conduct a home inspection. The probation officer observed a .22 caliber handgun. Negrete first asserted that the gun was a toy, and later admitted it was a real firearm. Negrete had been previously convicted of a felony offense and he is prohibited from possessing firearms. The police obtained a search warrant. Inside the home, they found about $20,000 in United States currency and more than a pound of methamphetamine. The methamphetamine was later sent to the Douglas County Sheriff’s Office’s Forensic Services Bureau. Testing completed by their laboratory showed that the drugs contained at least 514 grams of actual or pure methamphetamine.
Negrete pleaded guilty on August 26, 2021 to possessing 50 grams or more of actual methamphetamine with the intent to distribute, possessing a firearm in furtherance of a drug trafficking crime, and three counts of distribution of methamphetamine. His sentencing hearing is scheduled for November 19, 2021. He faces a statutory mandatory minimum sentence of 15 years’ imprisonment and he could potentially face up to life imprisonment.
This case was investigated by the Central Nebraska Drug and Safe Streets Task Force, which is made up of officers from the Grand Island Police Department, Hall County Sheriff’s Department, Hastings Police Department, Adams County Sheriff’s Department, Kearney Police Department, Buffalo County Sheriff’s Department, Nebraska State Patrol, Homeland Security Investigations, and the Federal Bureau of Investigation.
Gloversville Man Sentenced to 180 Months for Child Pornography CrimesRead the Press Release
ALBANY, NEW YORK – Jonathan L. Morgan, age 32, of Gloversville, New York, was sentenced today to 180 months in prison for distributing and possessing child pornography.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
In previously pleading guilty, Morgan admitted that he distributed videos depicting the sexual exploitation of children via a phone-based application connected to the Internet, from March 11 to March 12, 2020. He also admitted to possessing child pornography on two phones. Additionally, Morgan sought out videos of parents abusing their children, and provided detailed instructions to an undercover law enforcement officer (posing as a parent) as to how to abuse her daughter while filming it; smashed and tried to destroy one of his phones upon being approached by law enforcement; and admitted to inappropriately touching a child on several occasions.
Chief United States District Judge Glenn T. Suddaby also imposed a 15-year term of post-imprisonment supervised release. Additionally, Morgan will be required to register as a sex offender upon his release from prison.
The case was investigated by the FBI and its Child Exploitation Task Force, and was prosecuted by Assistant U.S. Attorney Michael Barnett.
This case was prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Gettysburg Man Sentenced on Firearm ChargeRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Gettysburg, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced on August 23, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Jamie Holzwarth, age 39, was sentenced to 30 months in federal prison, followed by three years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. He must also forfeit the firearm.
Holzwarth was indicted for Possession of Firearm by a Prohibited Person by a federal grand jury on March 9, 2020. He pled guilty on June 1, 2021.
The conviction stems from an incident on February 26, 2020, in Eagle Butte, when Holzwarth, who had previously been convicted of crime punishable by imprisonment exceeding one year, and being an unlawful user of a controlled substance, knowingly possessed a firearm, which had been previously shipped and transported in interstate and foreign commerce. Law enforcement encountered Holzwarth intoxicated in a running vehicle with the firearm and drug related items.
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.
This case was investigated by Cheyenne River Sioux Tribe Law Enforcement Services, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan Dilges prosecuted the case.
Holzwarth was immediately turned over to the custody of the U.S. Marshals Service.
Former low-income housing executive sentenced to prison for embezzling nearly $7 millionRead the Press Release
Tacoma – A former Pierce County Housing Authority executive was sentenced today in U.S. District Court in Tacoma to 51 months in prison for wire fraud in connection with her scheme to steal nearly $7 million, announced Acting U.S. Attorney Tessa M. Gorman. Cova Campbell pleaded guilty in January 2021, admitting that between March 2016 and July 2019, she used a variety of schemes to divert $6.9 million in public money to her own bank accounts. At the sentencing hearing U.S. District Judge Robert J. Bryan ordered Campbell into custody immediately, and said “There is a substantial question about your remorse… On one level you were a highly competent public servant, but you had a dark side that allowed you to lose your moral compass.”
“At a time when housing resources in our community are in historically high demand, this defendant stole from the poor and vulnerable who most needed assistance,” said U.S. Attorney’s Office Criminal Chief Sarah Vogel. “Her greed meant there were less resources for the elderly, the disabled, the veterans, and the children in Pierce County who count on the Housing Authority to provide safe and secure shelter.”
According to records filed in the case, Campbell was a 20-year trusted employee of the Pierce County Housing Authority, and repeatedly betrayed that trust over a 3-year period. Campbell initiated wire transfers of as much as $500,000 from Pierce County Housing Authority accounts to her own bank accounts. One of the transfers was in connection with the purchase of land in Oklahoma. Campbell also prepared and submitted false invoices to PCHA and made them appear they were from an outside vendor. PCHA paid the invoices, and the money went into Campbell’s bank accounts. Campbell covered up her fraud by labeling these fraudulent charges as “investments,” “insurance,” or “maintenance” in the PCHA accounting records.
According to the plea agreement, Campbell used the money to pay for land and improvements to that property in Oklahoma, for improvements to her home in Lakewood, Washington, and for travel including trips to Las Vegas and the chartering of a private jet. She used some of the money for the purchase of two cars. She also diverted large amounts of the money for gambling and internet gaming.
The Washington State Auditor’s Office uncovered the financial irregularities, and Campbell’s employment was terminated by the Housing Authority on August 8, 2019.
Campbell was arrested in March 2020 in Redbird, Oklahoma.
In asking for a 5-year prison sentence, prosecutors noted that Campbell had abused her position of trust, and even brought her co-workers under suspicion. “Then, once it became clear that Ms. Campbell acted alone, the employees felt blame and shame for failing to stop their boss’s criminal acts…. This money was intended to expand and improve housing options in our community.… The crime was a devastating theft from vulnerable residents of Pierce County based on greed,” Assistant United States Attorney Brian Werner wrote in his sentencing memo.
One of the Commissioners of the Housing Authority Board spoke at the hearing saying, “The fraud limits the ability of the authority to assist the community.” Commissioner Mark Martinez also said Campbell had not explained what happened to about 60 percent of the stolen money and had turned over few assets voluntarily, forcing the Housing Authority to spend time and money trying to get those assets via civil litigation.
Due to some of the amounts recovered in the civil litigation, the amount of restitution Campbell still owes is $5,299,976.
The case was investigated by the FBI and HUD-OIG. The case was prosecuted by Assistant United States Attorney Brian Werner.
Former Wind Farm Manager Sentenced to 3 Years in $550,000 Embezzlement SchemeRead the Press Release
A San Angelo man who embezzled more than half a million dollars from a wind farm was sentenced yesterday to more than three years in federal prison, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Arturo Salazar III, 41, a former site manager for a Vestas-American Wind Technologies wind farm, pleaded guilty to four counts of unauthorized transactions with access devices in May. He was sentenced Thursday to 37 months in federal prison by U.S. District Judge James Wesley Hendrix, who ordered him to pay $359,810 in restitution to the company.
According to court documents, Mr. Salazar admitted that he teamed up with a conspirator to create a sham business, BT Machine, with the sole purpose of creating fraudulent invoices.
From 2016 to 2019, the pair created hundreds of bogus invoices for nonexistent equipment BT Machine purportedly leased to Vestas. The conpsirator sent each invoice – complete with a BT “logo” – to Mr. Salazar at his work email address; Mr. Salazar then paid each one with his Vetas credit card. He and the other individual then split the money.
Mr. Salazar also used Vestas company credit cards to make unauthorized purchases totaling approximately $80,000. These personal purchases included products from Amazon as well as a $50,000 skid steer loader, a $18,900 universal terrain vehicle, and a $7,900 dump trailer.
From 2016 to 2019, Mr. Salazar admitted to defrauding Vestas out of more than $550,000. To avoid detection, he kept each transaction under the $2,000 limit set by his employer.
The Federal Bureau of Investigation’s Dallas Field Office, San Angelo Resident Agency conducted the investigation. Assistant U.S. Attorney Ann Howey prosecuted the case.
Former University of Louisville Coach Sentenced to ProbationRead the Press Release
Louisville, KY – A North Carolina man was sentenced today to probation and a $10,000 fine for attempting to extort money from the University of Louisville.
According to court documents, after Dino Gaudio, 64, of Mooresville, North Carolina, was informed his employment contract as an assistant men’s basketball coach would not be renewed, he attempted to extort money from the University of Louisville. Specifically, Gaudio threatened to report to the media that the University of Louisville men’s basketball program had allegedly violated National College Athletic Association rules in its production of recruiting videos for prospective student-athletes and in its use of graduate assistants in practices, unless he was paid his salary of $25,000 a month for an additional 17 months or received a lump sum payment of $425,000. As part of this threat, Gaudio sent a text message to University of Louisville personnel containing one of the recruiting videos he was threatening to send to the media.
Acting U.S. Attorney Michael A. Bennett of the Western District of Kentucky made the announcement.
The FBI and the University of Louisville Police Department investigated the case.
Assistant U.S. Attorney Amanda E. Gregory prosecuted the case.
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Former UNL Student Convicted for Receipt of Child PornographyRead the Press Release
Acting United States Attorney Jan Sharp announced that Hunter A. Towle, 19, of Lincoln, Nebraska, was sentenced today in Lincoln by United States District Judge John M. Gerrard for receipt of child pornography. Towle was sentenced to 10 years and 4 months in prison and 15 years of supervised release with special conditions. There is no parole in the federal system. Additionally, Towle was ordered to pay $18,000 in restitution.
This case began when Towle was interviewed by the UNL Police Department (“UNL-PD”) on September 9, 2020 regarding an unrelated matter. During the interview, UNL-PD received consent to review the photos on Towle’s iPhone 8 Plus. The investigator immediately saw child pornography on the phone. The iPhone 8 Plus was seized, and a search warrant was received to search the phone. Subsequently, through further investigation, UNL-PD discovered that Towle had been the main suspect in the investigation of two cyber tips issued by the National Center for Missing and Exploited Children (“NCMEC”) that had been examined by the Nebraska State Patrol (“NSP”) earlier in 2020. NSP contacted Towle in April of 2020 to discuss these cyber tips. Towle admitted to sharing the child pornography images and told the NSP investigator that he would stop and seek medical assistance.
After UNL-PD seized Towle’s phone on September 9, 2020, additional search warrants were received including a warrant for a residential search. During the residential search on October 6, 2020, an additional cellphone of Towle’s – a Motorola Droid – was seized. A forensic download of Towle’s iPhone 8 Plus revealed 1,323 videos of child pornography and 48 image files of child pornography. A forensic download of Towle’s Motorola Droid cellular phone revealed 26 images of child pornography—which he had received subsequent to the September 9, 2020 interview by UNL-PD.
UNL-PD additionally received a search warrant for Towle’s Instagram account he had used to trade child pornography. A review of the Instagram account revealed consistent attempts by Towle to trade child pornography with other Instagram users. The Instagram account additionally revealed conversations between Towle and others in which he discussed methods of trading child pornography that would be hidden from law enforcement detection because he had previously been caught.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the University of Nebraska-Lincoln Police Department.
Former Priest and “Shelter Home” Operator Indicted for Illicit Sexual Conduct Against MinorsRead the Press Release
WASHINGTON – A federal grand jury in Washington, D.C., returned an indictment yesterday charging a U.S. citizen and resident of Timor Leste with seven counts of engaging in illicit sexual conduct in a foreign place.
According to court documents, Richard Jude Daschbach, 84, is a former priest who is alleged to have engaged in illicit sexual conduct with minor victims in Timor Leste starting in at least 2013. As alleged, Daschbach operated a “shelter home” for children in Timor Leste. Victims disclosed that Daschbach sexually abused them when they were children and resided in the shelter home. Daschbach was defrocked by the Catholic church after some of the victims disclosed the abuse to the church. Daschbach is currently facing related child sexual exploitation charges in Timor Leste. In addition, in 2019, a grand jury in the Northern District of California returned an indictment against Daschbach for wire fraud in connection with his fundraising activity for the shelter home.
““This indictment represents a significant step toward accountability for harms suffered by multiple vulnerable children allegedly victimized by this defendant,” said Assistant Attorney General Kenneth A. Polite Jr. for the Justice Department’s Criminal Division. “I’d like to thank the hardworking investigative and prosecution teams for their work today and every day to ensure that child predators face justice and children are kept safe.
”This case shows that we will use the full extent of the law to prosecute U.S. citizens who allegedly prey on children, no matter how far we must go to bring them to justice,” said Acting U.S. Attorney Channing D. Phillips for the District of Columbia. “Together with our law enforcement partners, we must ensure that people placed in positions of trust do not betray their responsibilities to help the children who depend upon them.”
Daschbach is charged with seven counts of engaging in illicit sexual conduct in a foreign place, Timor Leste. If convicted, he faces a maximum penalty of 30 years in prison per count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI is investigating the case. The Justice Department’s Office of International Affairs provided significant assistance.
Trial Attorneys Jessica Urban and Alicia A. Bove of the Justice Department’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Amy Larson of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case. The Criminal Division’s Office of Overseas Prosecutorial Development, Assistance and Training (OPDAT) provided assistance.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Priest and ‘Shelter Home’ Operator Indicted for Illicit Sexual Conduct Against MinorsRead the Press Release
A federal grand jury in Washington, D.C., returned an indictment yesterday charging a U.S. citizen and resident of Timor Leste with seven counts of engaging in illicit sexual conduct in a foreign place.
According to court documents, Richard Jude Daschbach, 84, is a former priest who is alleged to have engaged in illicit sexual conduct with minor victims in Timor Leste starting in at least 2013. As alleged, Daschbach operated a “shelter home” for children in Timor Leste. Victims disclosed that Daschbach sexually abused them when they were children and resided in the shelter home. Daschbach was defrocked by the Catholic church after some of the victims disclosed the abuse to the church. Daschbach is currently facing related child sexual exploitation charges in Timor Leste. In addition, in 2019, a grand jury in the Northern District of California returned an indictment against Daschbach for wire fraud in connection with his fundraising activity for the shelter home.
Today’s indictment represents a significant step toward accountability for harms suffered by multiple vulnerable children allegedly victimized by this defendant,” said Assistant Attorney General Kenneth A. Polite Jr. for the Justice Department’s Criminal Division. “I’d like to thank the hardworking investigative and prosecution teams for their work today and every day to ensure that child predators face justice and children are kept safe.”
“This case shows that we will use the full extent of the law to prosecute U.S. citizens who allegedly prey on children, no matter how far we must go to bring them to justice,” said Acting U.S. Attorney Channing D. Phillips for the District of Columbia. “Together with our law enforcement partners, we must ensure that people placed in positions of trust do not betray their responsibilities to help the children who depend upon them.”
Daschbach is charged with seven counts of engaging in illicit sexual conduct in a foreign place, Timor Leste. If convicted, he faces a maximum penalty of 30 years in prison per count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI is investigating the case. The Justice Department’s Office of International Affairs provided significant assistance.
Trial Attorneys Jessica Urban and Alicia A. Bove of the Justice Department’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Amy Larson of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case. The Criminal Division’s Office of Overseas Prosecutorial Development, Assistance and Training (OPDAT) provided assistance.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Cisco Executive Sentenced to 36 Months in Prison for Fraud Scheme and Filing False Tax ReturnsRead the Press Release
SAN FRANCISCO – Prithviraj “Roger” Bhikha, a former Senior Director of Global Supplier Management of Cisco Systems, Inc. (Cisco), was sentenced to 36 months in prison and ordered to pay more than $3 million in restitution to Cisco and the U.S. Internal Revenue Service following his wire fraud and tax convictions, announced Acting United States Attorney Stephanie M. Hinds, Federal Bureau of Investigation Special Agent in Charge Craig D. Fair, and Internal Revenue Service-Criminal Investigation Special Agent in Charge Michael Daniels. The sentence was handed down on August 25, 2021, by the Honorable Charles R. Breyer, Senior United States District Judge.
Bhikha, 52, of San Francisco, was convicted of conspiracy to commit wire fraud and aiding and assisting in the filing of a false and fraudulent tax return. He pleaded guilty to these crimes earlier pursuant to a plea agreement filed November 19, 2020.
In his November 2020 plea agreement, Bhikha stated he was employed at Cisco from 1999 to 2017, and in about 2013 Cisco assigned him to lead a new project called “Project New York.” Project New York’s goal was to enable Cisco to retain third-party vendors to negotiate savings with manufacturers on certain parts used by Cisco to assemble Cisco products. Bhikha admitted in his plea agreement that he received kickback payments from a vendor retained by Cisco to do Project New York work. Bhikha further admitted that he created his own company to serve as a vendor for Project New York – despite Cisco’s prohibition against purchasing goods or services from its own employees – and concealed it from Cisco.
As to kickback payments, Bhikha met in early 2014 with the president of one of Project New York’s first two vendors. In his plea agreement, Bhikha admitted he asked the executive to provide kickbacks to him from Cisco’s payments to the vendor. The vendor’s president complied and ultimately paid a total of $1.15 million to a bank account bearing the name of a company Bhikha formed in Hong Kong: Lucena Limited (Lucena).
Bhikha further admitted in his plea agreement that, following transfer of official control of Lucena to his wife, he arranged for Lucena to become the third vendor retained by Cisco for Project New York. Between August 2014 and April 2017 Cisco paid Lucena, and its related company Bhikha established in Singapore, a total of $10.06 million for performing price-negotiation services under Project New York. Bhikha admitted in his plea agreement that he actively concealed his connection with Lucena from Cisco, including going so far as to having an imposter pose as Lucena’s CEO in a 2016 Cisco meeting held in Northern California. At the meeting, which Bhikha attended, the imposter presented false information about Lucena that was material to Cisco in its determination to continue business with Lucena.
Cisco terminated Bhikha when his connection to Lucena came to light in 2017. In his plea agreement Bhikha admitted that prior to his termination he never advised Cisco: (a) that he or his wife were employed by or had an ownership, control, or financial interest in the Lucena entities; (b) that Bhikha or his wife had a personal interest in or personally benefitted from the payments that Cisco made to those entities; or (c) that he had requested and received kickback payments from a Cisco vendor. Bhikha further admitted he knew that if Cisco discovered these facts, Cisco would likely terminate his employment and any business relationship Cisco had with Lucena entities.
Bhikha also admitted in his plea agreement that he and his wife repatriated more than $9 million from foreign accounts held in the Lucena entities’ names and that he intentionally failed to inform his tax preparers of the repatriated income, meaning that those amounts would not be included in his tax returns for 2014 through 2017. Bhikha admitted and the Court concluded that this omission resulted in Bhikha’s underpayment of federal income taxes by more than $2.5 million.
In addition to a 36-month prison term, United States District Judge Breyer ordered Bhikha to pay $1.15 million in restitution to Cisco and more than $2.5 million to the IRS. Judge Breyer further ordered the forfeiture of two pieces of real estate in San Francisco as proceeds of Bhikha’s crimes. Bhikha remains out of custody on bond and is ordered to surrender into custody on October 28, 2021.
Assistant U.S. Attorneys Kyle F. Waldinger and Chris Kaltsas prosecuted the case with the assistance of Kathy Tat, Claudia Hyslop, and Carolyn Caparas. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation.
Former Bureau of Prisons Correctional Officer Sentenced to 24 Months in Federal Prison for Sexually Abusing InmatesRead the Press Release
TALLAHASSEE, FLORIDA – Phillip Golightly, 39, of Quincy, Florida, was sentenced to 24-months in federal prison following his conviction for sexual abuse of a ward while on duty at the Federal Correctional Institution in Tallahassee. The sentence, following the defendant’s guilty plea on October 16, 2020, was announced by Jason R. Coody, Acting United States Attorney for the Northern District of Florida.
Court documents reflect that while employed as a U.S. Bureau of Prisons Correctional Officer, Golightly sexually assaulted female inmates who were then under his custodial, supervisory, and disciplinary authority at the Federal Correctional Institutions in Marianna and Tallahassee, Florida.
Golightly’s prison sentence will be followed by 5 years of supervised release. He will also be required to register as a sex offender and will be subject to sex offender conditions.
Assistant United States Attorney Lazaro P. Fields prosecuted the case, which resulted from an investigation by the Department of Justice Office of Inspector General.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Five Plead Guilty to Pandemic Unemployment Fraud, Mail Fraud ChargesRead the Press Release
ABINGDON, Va.– Five Southwest Virginia residents who conspired with more than 30 others to defraud the United States government by filing fraudulent claims for more than $499,000 in pandemic unemployment benefits, mail fraud and associated offenses pleaded guilty this week and last in U.S. District Court in Abingdon.
According to court documents, Patrick Payne, 43, Randall Johnson, 42, Steven Mullins Jr., 33, Curtis Mullins, 25 and Melinda Davis, 58, conspired with others to file claims for pandemic unemployment benefits through the Virginia Employment Commission (VEC) website. The scheme involved submitting claims for various individuals who were not eligible to receive pandemic unemployment benefits, including for numerous inmates incarcerated in southwest Virginia regional jails. To date, 19 of the co-conspirators have pleaded guilty to their roles in the broader conspiracy.
Conspiracy members lied on the filings as part of the scheme to make filers appear eligible for benefits. Because pandemic unemployment benefits were paid weekly, each of those filings re-verified and re-certified the false statements on numerous occasions throughout the scheme.
In all, the conspiracy filed fraudulent claims for approximately 37 individuals, causing at least $499,000 in false claims to be have been paid. In addition to those indicted, eight co-conspirators have already entered into plea agreements with the United States.
“These five individuals used a carefully orchestrated series of lies to steal hundreds of thousands of dollars intended for Virginians struggling during a once-in-a-generation global health pandemic,” Acting United States Attorney Daniel P. Bubar said today. “The Department of Justice is grateful to the Internal Revenue Service, Department of Labor and the Virginia Employment Commission for their hard work and commitment to investigating these cases and bringing these individuals to justice.”
“Investigating those who fraudulently take funds from pandemic relief programs will continue to be a focus of IRS-CI. These programs were put into place to assist those struggling through the global crisis, not to be used for personal enrichment,” said Darrell J. Waldon, Acting Special Agent in Charge of the IRS-CI Washington DC Field Office.
“Patrick Payne, Randall Johnson, Steven Mullins Jr., Curtis Mullins and Melinda Davis, conspired with others to defraud the Pandemic Unemployment Assistance Program by filing for and receiving benefits that they and others were not entitled to receive. The United States Department of Labor Office of Inspector General is grateful for our partnerships with the Virginia Employment Commission and our many law enforcement partners. We also want to thank the U.S. Attorney’s Office for their continued efforts to prosecute those who violate public benefit programs and commit fraud,” stated Syreeta Scott, Special Agent-in-Charge of the Philadelphia Region, U.S. Department of Labor Office of Inspector General.
Each of the individuals pleaded guilty to conspiracy to defraud the United States and conspiracy to commit mail fraud. Each faces a maximum penalty of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Department of Labor Office of the Inspector General and the Internal Revenue Service – Criminal Investigation, along with State and local partners including the Norton Police Department and Russell County Sheriff’s Office, are investigating the case.
Assistant United States Attorney Daniel J. Murphy prosecuted 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 .
Felon Sentenced to 2 Years in Federal Prison for Illegally Possessing Loaded Handguns in HartfordRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that TYSHAWN TURNER, 36, formerly of Hartford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 24 months of imprisonment, followed by three years of supervised release, for unlawfully possessing two firearms.
According to court documents and statements made in court, at approximately 4:40 a.m. on August 5, 2018, Hartford Police dispersed an illegal after-hours party on Belden Street in Hartford. When police arrived, Turner agreed to take two firearms from an associate, who was on federal supervised release, and then attempted to hide them in a parked car. Turner was arrested on state charges after officers saw him, searched the car, and found a loaded .32 caliber semi-automatic pistol and a loaded .38 Special revolver. The revolver had been reported stolen in New Haven in 2011.
Prior to August 2018, Turner was convicted in state court of firearm and robbery offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On October 29, 2020, Turner pleaded guilty to possession of firearms by a felon.
Turner is currently released on a $75,000 bond and residing in Windsor. He is required to report to prison on October 27, 2021.
As a special condition of his supervised release, Turner is prohibited from entering Hartford without the permission of the U.S. Probation Office.
This matter was investigated by the Hartford Police Department and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorneys Conor Reardon and Brendan Keefe.
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.
Federal Prisoner Indicted for Illegal Contraband and EscapeRead the Press Release
PENSACOLA, FLORIDA – William Brett Brownell, 30, of Milton, Florida, was arraigned on charges of possession of contraband by a federal prisoner, introduction of contraband to a federal prison, and escape. The indictment was announced today by Jason R. Coody, Acting U.S. Attorney for the Northern District of Florida.
The indictment alleges that between October 2019 and June 2020, Brownell obtained, possessed, and distributed to fellow prisoners at the Federal Prison Camp in Pensacola various prohibited items, including marijuana, alcohol, cell phones, and tobacco products. Brownell was in the midst of serving a 70-month sentence for marijuana trafficking and money laundering convictions. The indictment also alleges that around approximately the same time frame, Brownell escaped from custody by failing to remain within prison limits.
Brownell faces up to five years’ imprisonment on each count, and any sentence on the contraband charges must be consecutive to his current prison sentence. Trial for Brownell is scheduled for October 4, 2021, at the United States Courthouse in Pensacola before the Honorable United States District Judge M. Casey Rodgers.
This case resulted from a joint investigation by the Bureau of Prisons Special Investigative Services, the U.S. Air Force Office of Special Investigations, Eglin Air Force Base 96th Test Wing Legal Office, and the Federal Bureau of Investigation. Assistant U.S. Attorney Alicia Forbes is prosecuting this case.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Dominican National Sentenced for Fentanyl ConspiracyRead the Press Release
BOSTON – A Dominican national previously residing in Lawrence was sentenced yesterday in federal court in Boston for fentanyl conspiracy charges.
Enmanuel Brioso Fabal, 31, was sentenced by U.S. District Court Judge Denise J. Casper to four years in prison and three years of supervised release. On April 7, 2021, Brioso Fabal pleaded guilty to one count of conspiracy to distribute and possession with intent to distribute 400 grams or more fentanyl, one count of distribution of 40 grams or more of fentanyl and one count of distribution of fentanyl.
Brioso Fabal was a member of a drug trafficking organization that included co-defendants Jimenez Minyetty, Guillermo Aybar-Guerrero and Nieves Guzman. On Aug. 5, 2019 and Sept. 26, 2019, investigators conducted two controlled purchases of fentanyl from Brioso Fabal of approximately 500 fentanyl pills and approximately 56 grams of fentanyl powder, respectively. On Nov. 2, 2019, a search was executed at a stash house in Lawrence associated with the drug organization where various drug distribution paraphernalia, including a mixing bowl containing suspected fentanyl, sifters and blenders were recovered.
On May 12, 2021, Guzman was sentenced by Judge Casper to time served (approximately 18 months in prison). Guzman will be subject to deportation upon completion of her sentence. On May 27, 2021, Jimenez Minyetty was sentenced by Judge Casper to eight years in prison and four years of supervised release. Jimenez Minyetty will be subject to deportation upon completion of his sentence.
Aybar-Guerrero pleaded guilty in June 2021. He is awaiting a consolidated sentencing for his role in this case and in a separate fentanyl conspiracy, which is scheduled for Sept. 29, 2021.
Acting United States Attorney Nathaniel R. Mendell and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Assistant U.S. Attorney Lauren Graber of Mendell’s Narcotics and Money Laundering Unit prosecuted the case.
Deputy Attorney General Lisa Monaco Announces Creation of New Cyber Fellows PositionsRead the Press Release
Today, Deputy Attorney General Lisa Monaco announced the creation of a new Cyber Fellowship program, designed to develop a new generation of prosecutors and attorneys equipped to handle emerging national security threats.
“As we have witnessed this past year, cyber threats pose a significant and increasing risk to our national security, our economic security, and our personal security,” said Deputy Attorney General Monaco. “We need to develop the next generation of prosecutors with the training and experience necessary to combat the next generation of cyber threats. This Fellowship gives attorneys a unique opportunity to gain the well-rounded experience they need to tackle the full range of those threats.”
The creation of the Fellowship, which will be coordinated through the Criminal Division’s Computer Crime and Intellectual Property Section, is a recommendation from the department’s ongoing comprehensive cyber review, ordered by Deputy Attorney General Monaco this past May. The review is aimed at developing actionable recommendations to enhance and expand the Justice Department’s efforts against cyber threats.
Cyber Fellowship Details
The three-year Cyber Fellowship will provide selected attorneys experience combating emerging national security and criminal cyber threats, while rotating through multiple department components that protect the nation from cyber threats — including the Criminal Division, the National Security Division and the U.S. Attorneys’ Offices. Through this unique opportunity, Fellows will handle a broad range of the cyber cases performed by the department and gain a comprehensive understanding of the department’s response to emerging and critical threats. Fellows can expect to investigate and prosecute state-sponsored cyber threats; transnational criminal groups; infrastructure and ransomware attacks; and the use of cryptocurrency and money laundering to finance and profit from cyber-based crimes.
Incoming Fellows must agree to a three-year commitment to the program and be able to secure a Top Secret security clearance. All Fellows will be based in the Washington, D.C. area. Fellows may be extended or converted to permanent positions without further competition or may reapply to the Honors Program in a subsequent year provided they meet eligibility criteria. Alternatively, as they approach the end of their three-year term, Fellows may apply to permanent positions within the department that align with their interest.
Application Details
The first track of Cyber Fellowship applications will be accepted through the Justice Department’s Honors Program application portal, which can be found here. Applicants who have applied to or are in the process of applying to this year’s Honors Program should indicate that they would also like to be considered for the Cyber Fellowship. Candidates must meet Honors Program eligibility criteria to apply through the Honors application portal. The deadline for this first round is Sept. 8. Information regarding deadlines and eligibility to submit applications to the Cyber Fellowship through subsequent tracks is forthcoming.
Inquiries about the Cyber Fellowship can be submitted to [email protected].
Crownpoint man sentenced to 10 years in prison for injuring children during drive-by shooting in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Eli Woody, 27, of Crownpoint, New Mexico, and an enrolled member of the Navajo Nation, pleaded guilty in federal court today to discharging a firearm during a crime of violence in Indian Country and was sentenced to 10 years in prison.
According to the plea agreement and other court documents, Woody was a passenger in a vehicle that pulled up next to a home located in Crownpoint on the Navajo Nation. Woody fired a shotgun from the vehicle and into the home. Woody admitted that knew the home was occupied with people, including children. Inside the home, two children were shot and suffered serious bodily injury.
Upon his release from prison, Woody will be subject to five years of supervised release.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with the assistance of the Navajo Department of Criminal Investigation and the Navajo Police Department. Assistant U.S. Attorneys David P. Cowen and Elisa C. Dimas prosecuted the case.
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Crestview Felon Sentenced to Six Years in Federal Prison for Possessing an Unregistered Machine GunRead the Press Release
PENSACOLA, FLORIDA – Frank Miller Freeman, III, 30, of Crestview, Florida, was sentenced to six years in federal prison after pleading guilty to charges of possession of a firearm by a convicted felon, possession of a machine gun, and possession of an unregistered firearm with no serial number. The sentence was announced today by Jason R. Coody, Acting U.S. Attorney for the Northern District of Florida.
On November 10, 2020, Freeman was pulled over by Okaloosa County Sheriff’s Office deputies with a loaded Ruger pistol and a .300 blackout caliber M16-type machine gun with a loaded 60-round magazine attached. The machine gun was fully automatic and contained no serial number or manufacturer markings, and it was not registered as required by federal law. Freeman had previously been convicted of multiple drug felonies.
This case resulted from a joint investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Okaloosa County Sheriff’s Office. Assistant U.S. Attorney Alicia Forbes prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Cortland County Woman Sentenced to 45 Years for Child Sexual Exploitation CrimesRead the Press Release
SYRACUSE, NEW YORK – Sarah R. Gates, age 40, of Cortland, New York, was sentenced yesterday to serve 540 months (45 years) in prison for conspiring and acting together with co-defendant Christopher Perry to sexually exploit a child under five years of age for the purpose of producing images of the abuse. The announcement was made by Acting United States Attorney Antoinette T. Bacon and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
As part of her prior guilty plea to a three-count Information, Gates admitted that on several occasions in 2017, she and Perry performed sexual acts on the child while taking photographs of the abuse, using two cell phones.
Senior United States District Judge Thomas J. McAvoy also imposed a 15-year term of supervised release, which will start after Gates is released from prison. As a result of her conviction, Gates will also be required to register as a sex offender upon her release from prison.
Perry previously pled guilty to the same offenses and was sentenced, on November 3, 2020, to 540 months (45 years) in prison.
The case was investigated by the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), the City of Cortland Police Department, and the New York State Police-Computer Crimes Unit, and prosecuted by Assistant U.S. Attorney Sahar L. Amandolare and Special Assistant U.S. Attorney Adrian S. LaRochelle as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Convicted Felon Guilty of Illegally Possessing FirearmRead the Press Release
ALBANY, Ga. – An Albany resident with several prior felony convictions pleaded guilty to illegally possessing a firearm resulting from a Project Safe Neighborhoods (PSN) investigation.
Lenwood Thomas, 40, of Albany, pleaded guilty to possession of a firearm by a convicted felon and possession of cocaine with intent to distribute before U.S. District Judge Leslie Gardner on Wednesday, August 25. As an armed career criminal, Thomas faces a minimum of 15 years to a maximum of life in prison to be followed by a maximum of five years of supervised release. Sentencing has not been scheduled, but will occur within 90 days. There is no parole in the federal system.
“Armed career criminals like Lenwood Thomas who repeatedly break the law while in possession of guns will face federal prosecution,” said Acting U.S. Attorney Peter D. Leary. “Working with the local community and our state and federal partners, we will hold repeat offenders accountable for their crimes and do everything in our power to decrease violent crime across Southwest Georgia.”
According to court documents, Thomas was on parole when officers with the Department of Community Supervision (DCS) and Dougherty County Police Department conducted a search of his home on February 28, 2020, based on evidence that Thomas was conducting illegal drug sales, in violation of the law and of his parole conditions. Officers found a .45 caliber semi-automatic pistol in the home, along with illegal drugs and drug paraphernalia. At the time the firearm was found in his possession, Thomas had numerous felony convictions. It is illegal for a convicted felon to possess a firearm. Following that incident, Thomas was arrested on an unrelated matter on June 14, 2021. At the time, Thomas had outstanding arrest warrants and was spotted by an investigator with the Albany-Dougherty Drug Unit. During the attempted stop, Thomas drove away from the officers, committing numerous traffic violations in an attempt to escape but eventually lost control of his vehicle. When his vehicle came to rest in a ditch, Thomas ran away from the scene and was chased by an officer. During the foot chase, Thomas threw items of out a bag he was carrying, including illegal drugs, drug paraphernalia and a BMW key fob. When he was in custody at the Dougherty County Jail, Thomas was recorded telling a family member that he had “5 ½ outfits” in the trunk of his BMW and asked the family member to get in touch with “Trell” as he would know what to do with them. Officers sought and obtained a search warrant for the BMW, finding 167.4 grams of cocaine in the trunk and a 9mm pistol.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Georgia Department of Community Supervision, Dougherty County Police Department, and Albany-Dougherty Drug Unit.
Assistant U.S. Attorney Melody Ellis is prosecuting the case for the Government.
Colorado Man Sentenced to 15 Years on Drug ChargeRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Denver, Colorado, man convicted of Possession with Intent to Distribute a Controlled Substance was sentenced on August 17, 2021, by Judge Jeffrey L. Viken, U.S. District Court.
Emilio Hernandez, age 38, was sentenced to 15 years in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Hernandez was indicted by a federal grand jury on June 19, 2018, and pleaded guilty on April 21, 2021. Hernandez was found to knowingly be in possession of methamphetamine in April 2018 in Rapid City after Hernandez came into contact with law enforcement. Hernandez intended to distribute the methamphetamine.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Unified Narcotics Enforcement Team, and the South Dakota Highway Patrol. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Hernandez was immediately remanded to the custody of the U.S. Marshals Service.
Co-Owner of North Carolina Durable Medical Equipment Company Sentenced to Prison for Role in Defrauding MedicaidRead the Press Release
RALEIGH, N.C. – A Morehead City woman was sentenced today to 30 months in federal prison, followed by three years of supervised release on a charge of Making Material False Statements Relating to Healthcare Matters, in violation of Title 18, United States Code, Section 1035(a)(2). Shelly Phillips Bandy, 41, was also ordered to make restitution of $374,809.92, jointly and severally with her company, A Perfect Fit For You, Inc. (APFFY). Bandy is also liable for a civil judgment of $34,708,945.42 arising from the same conduct.
According to court documents, APFFY was a durable medical equipment provider located in Morehead City, North Carolina. Durable medical equipment includes items such as powered wheelchairs, orthotic braces, diabetic shoes, powered air flotation beds, osteogenesis stimulators, pneumatic compressors, etc. Between March 2015 and November 2016, one or more employees of APFFY submitted fraudulent billings claims to Medicaid for providing durable medical equipment to Medicaid recipients. These fraudulent claims contained the personal identifying information of Medicaid recipients who had never ordered nor received any durable medical equipment from APFFY. In fact, some of the patients had been deceased years before the false claims were even submitted. This scheme resulted in an estimated loss to Medicaid of approximately $10,069,361.35.
After appointment of a receiver, APFFY self-reported suspected fraudulent activity to the North Carolina Medicaid Investigations Division. Thereafter, the company cooperated throughout the investigation.
On December 13, 2017, and based on the conduct described above, the United States and State of North Carolina filed a civil complaint under the federal and state False Claims Acts against APFFY and its owners Margaret Gibson, and Bandy. The federal and North Carolina False Claims Acts mandate that the Governments recover triple the money falsely obtained, plus substantial civil penalties for each false claim submitted. To resolve those claims, the APFFY agreed to pay $20,138,722.70, while Gibson has agreed to pay $4,000,000. As for Bandy, the United States and State of North Carolina obtained a $34,708,945.42 default judgment against her in the civil action. It should be noted that the civil claims against A Perfect Fit for You, Inc. and Gibson are allegations only and were resolved by settlement. There was no judicial determination or admission of liability as to them in the civil case.
In addition to the civil case, APFFY pled guilty to a Criminal Information charging Health Care Fraud, in violation of Title 18, United States Code, Section 1347. On March 2, 2021, the company was sentenced to 5 years’ probation and ordered to pay a $2,000,000 fine in addition to paying $10,069,361.35 in restitution to the North Carolina Medicaid Program on a charge of Healthcare Fraud, in violation of Title 18, United States Code, Section 1347.
On December 29, 2020, Bandy pled guilty to making false statements relating to health care matters in violation of Title 18, United States Code, Section 1035. Bandy admitted to submitting fraudulent claims to Medicaid on behalf of APFFY. Specifically, Bandy admitted that on January 1, 2016, she billed Medicaid for 43 fraudulent claims, totaling $626,773.79. Medicaid subsequently paid $374,809.92 for those claims.
Today, in ordering Bandy to serve 30 months in federal prison, the court noted that as a society, citizens have decided to provide healthcare for the very poorest among us. In doing so, the Court noted that the Medicaid program is a system of trust. “The whole system is built on honesty,” the court stated. “If you break faith with the honor system that we built to care for the least among us, a person who does that needs to know … you will go to a penitentiary.” In stating this, the Court expressly rejected the defendant’s argument for a probationary sentence.
G. Norman Acker, III, Acting United States Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The investigation of this case was conducted by the North Carolina Department of Justice’s Medicaid Investigations Division (MID) and the United States Department of Health and Human Services Office of the Inspector General. Assistant United States Attorney William M. Gilmore is the prosecutor on the criminal case, while Assistant United States Attorney C. Michael Anderson represented the United States in the civil case. Special Deputy Attorneys General F. Edward Kirby, Jr. and Michael M. Berger, who also serve as a Special Assistant United States Attorneys, represented the United States and the State of North Carolina in the civil case.
The MID investigates and prosecutes health care providers that defraud the Medicaid program, patient abuse of Medicaid recipients, patient abuse of any patient in facilities that receive Medicaid funding, and misappropriation of any patients’ private funds in nursing homes that receive Medicaid funding. To report Medicaid fraud or patient abuse in North Carolina, call the MID at 919-881-2320.
The MID receives 75 percent of its funding from the U.S. Department of Health and Human Services under a grant award totaling $6,160,252 for Federal fiscal year (FY) 2020. The remaining 25 percent, totaling $2,053,414 for FY 2020, is funded by the State of North Carolina.
Casa Blanca Man Sentenced for HomicideRead the Press Release
PHOENIX, Ariz. –Antonio Daniel Bandin, 21, of Casa Blanca, Arizona, was sentenced yesterday by U.S. District Judge Michael T. Liburdi to 15 years in prison, to be followed by three years of supervised release. Bandin previously pleaded guilty to Voluntary Manslaughter.
On March 16, 2020, Bandin shot the victim multiple times, resulting in the victim’s death. Bandin is an enrolled member of the Gila River Indian Community.
The Gila River Police Department conducted the investigation in this case. Assistant U.S. Attorney Raynette Logan, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-20-00553-PHX-MTL
RELEASE NUMBER: 2021- 056_Bandin# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.California Man Sentenced for Methamphetamine Trafficking ConspiracyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a San Jose, California, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on August 24, 2021, by U.S. District Judge Karen E. Schreier.
Michael George Sequeira, age 37, was sentenced to 135 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.
Sequeira was indicted by a federal grand jury on December 17, 2019. He pled guilty on March 8, 2021.
The conviction stemmed from incidents beginning at an unknown date and continuing until on or about December of 2019, when Sequeira knowingly and intentionally combined, conspired, confederated, agreed with others to distribute a mixture or substance containing 500 grams or more of methamphetamine, which is a Schedule II controlled substance.
At the time Sequeira voluntarily joined in the agreement, he knew the purpose of said agreement. Sequeira provided over 500 grams of methamphetamine to his co-conspirators in South Dakota, who then would redistribute it to drug customers in South Dakota.
This case was investigated by the U.S. Postal Inspection Service, the Minnehaha County Sheriff’s Department, and the Sioux Falls Police Department. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Sequeira was immediately turned over to the custody of the U.S. Marshals Service.
Baltimore Home Invasion and Carjacking Assailant Sentenced to over Seven Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Rashaad Thomas, age 32, of Baltimore, Maryland to seven and a half years in federal prison, followed by three years of supervised release, for carjacking.
The sentence was announced by Acting 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 Commissioner Michael Harrison of the Baltimore Police Department.
According to his plea agreement, on October 21, 2017, Thomas forcibly entered a Baltimore City, Maryland residence where he brandished a weapon that resembled a firearm, demanded money, and demanded the keys to the victims’ vehicle. In compliance with Thomas’s demands, the male victim gave Thomas $500, his car keys, and walked Thomas to his vehicle located in the garage. Thomas then entered the vehicle and exited the garage, damaging the vehicle as he left the driveway.
On October 22, 2017, the stolen vehicle was recovered in the 3600 block of Dudley Avenue in Baltimore City, Maryland. The Baltimore City Police Department processed the vehicle for latent prints and discovered several prints that matched Thomas’s known fingerprints.
In addition to the latent prints, cellular telephone data placed Thomas’s cell phone near the location of the residence at the time of the home invasion and carjacking. Further, a BB gun that resembled the weapon described in the home invasion and carjacking was recovered from Thomas.
As stated in his plea agreement, Thomas is also a suspect in at least 17 violent crimes, including robberies, home invasions, and carjackings that occurred between July and October 2017. In many instances, victims report an assailant of Thomas’s description pointing a silver automatic handgun or black handgun to carry out various violent crimes.
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. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Acting United States Attorney Jonathan F. Lenzner praised the FBI and Baltimore Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney John W. Sippel, Jr. who prosecuted the case.
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Baltimore Drug Dealer Pleads Guilty to Federal Narcotics Trafficking ChargesRead the Press Release
Baltimore, Maryland – William Diggs, age 30, of Baltimore, Maryland, pleaded guilty today to conspiracy to distribute, possession with the intent to distribute, and the distribution of cocaine base.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division.
According to his guilty plea, from December 2019 to September 2020, Diggs conspired with others to possess and distribute cocaine base in the area of the 2600 block of Greenmount Avenue in Baltimore, Maryland. As a member of a drug trafficking organization (“DTO”), Diggs sold cocaine base, including to two individuals who happened to be confidential informants for law enforcement.
Over the course of four drug transactions, Diggs sold 42 vials of cocaine base as well as an eighth of an ounce of cocaine base to an ATF confidential informant. Additionally, during one drug transaction, the confidential informant asked Diggs if they could purchase a firearm. Diggs told the informant they could purchase a firearm for $200 when he gained possession of the firearm, although he ultimately did not proceed with the firearm transaction.
As stated in his plea agreement, a second confidential informant observed Diggs and two co-conspirators in a Baltimore rowhouse where the confidential informant observed several firearms. Diggs later admitted the firearms were possessed in furtherance of the drug conspiracy.
The Baltimore City Police Department’s Drug Analysis Unit confirmed that the substances sold by Diggs to the confidential informants contained the presence of cocaine base.
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. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Diggs and the government have agreed that, if the Court accepts the plea agreement, Diggs will be sentenced to 42 months in federal prison. U.S. District Judge Catherine C. Blake has not scheduled a sentencing hearing at this time.
Acting United States Attorney Jonathan F. Lenzner commended the ATF and the Baltimore Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Zachary Stendig, Lindsey N. McCulley and Special Assistant United States Attorney Lindsay DeFrancesco, who are prosecuting the case.
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Armed Bank Robber Sentenced to More Than 12 Years in Federal PrisonRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan has sentenced Demarcus Daniels (25, Lake City) to 12 years and 3 months in federal prison for bank robbery and brandishing a firearm in furtherance of a violent crime. The court also ordered Daniels to forfeit the firearm and ammunition he possessed during the offense.
Daniels had pleaded guilty on May 28, 2021.
According to court documents, on the morning of June 24, 2020, Daniels robbed an Ameris Bank branch in Lake City. Daniels attacked a bank employee as she unlocked the door to open the branch for the day. During the robbery, Daniels pointed a loaded .32 caliber pistol at the employee and demanded that she open the bank’s safe. After she opened the safe, Daniels removed approximately $310,200 in cash. Daniels then attempted to escape by carjacking another bank employee, who drove away before Daniels could enter her vehicle. Daniels fled on foot, dropping some of the money in the parking lot as he ran. He was apprehended a short time later by the Lake City Police Department in a nearby office park, hiding behind a dumpster.
“The defendant in this case carefully planned a violent act in pursuit of his own personal gain and committed it with zero regard for his victims,” said Rachel L. Rojas, Special Agent in Charge of the FBI Jacksonville Division. “American banks serve as the bedrock of the U.S. economy, and the FBI remains committed to working alongside our partners to aggressively pursue those who commit acts of violence against these institutions, and to seek justice for victims who are traumatized in the process.”
“We are aware that nationally violent crimes have increased. We are grateful for the assistance from the FBI and the United States Attorney’s Office who worked to bring closure and prosecution of this case,” stated Dr. Argatha Gilmore, Chief of Police for the Lake City Police Department. “I appreciate Lake City Police Department patrol officers and investigators who were diligent in their efforts in locating and arresting the suspect.”
This case was investigated by the Federal Bureau of Investigation and the Lake City Police Department. It was prosecuted by Assistant United States Attorney David B. Mesrobian.
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.
Albuquerque man pleads guilty to federal firearms chargeRead the Press Release
ALBUQUERQUE, N.M. – Robert E. Hood, 52, of Albuquerque pleaded guilty in federal court on Aug. 26 to being a felon in possession of a firearm and ammunition. Hood is currently in custody pending sentencing.
According to the plea agreement and other court records, on Dec. 23, 2019, Hood was found in possession of a firearm and ammunition. At the time, Hood was on parole for prior convictions for possession of a controlled substance and possession with intent to distribute cocaine. During a parole field call at Hood’s residence, a loaded .40 caliber pistol was found between the mattress and box spring of Hood’s bed.
As a previously convicted felon, Hood cannot legally possess a firearm or ammunition. Hood faces up to 10 years in prison.
The FBI and the New Mexico Corrections Department investigated this case. Assistant U.S. Attorney Samuel A. Hurtado is prosecuting the case.
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Albany County Man Pleads Guilty to Distribution and Possession of Child PornographyRead the Press Release
ALBANY, NEW YORK – Michael Kurtz, age 57, of Albany, pled guilty today to charges of distribution and possession of child pornography. The announcement was made by Acting United States Attorney Antoinette T. Bacon and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
In pleading guilty before United States District Judge Mae A. D’Agostino, Kurtz admitted that between September 29, 2018 and at least January 12, 2019, he used a peer-to-peer file sharing software program installed on his computer to distribute approximately 28 videos of child pornography from his home in Albany. Kurtz also admitted to possessing over 200 images of child pornography on his home computer at the time of his arrest on March 18, 2019.
Kurtz faces at least 5 years and up to 20 years in prison, as well as a term of supervised release of between 5 years and life. His sentencing is scheduled for December 28, 2021 in Albany. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Upon his release from prison, Kurtz will also be required to register as a sex offender in any state where he lives, is employed, or is a student.
This case was investigated by the FBI and its Child Exploitation Task Force, including investigators from the New York State Police Computer Crimes Unit, and is being prosecuted by Assistant U.S. Attorneys Ashlyn Miranda and Rachel Williams.
This case is prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc
292 Month Sentence Handed Down for Pamlico County Drug TraffickerRead the Press Release
RALEIGH, N.C. – A man from Oriental, North Carolina was sentenced today to over 24 years in prison for the distribution of controlled substances in Pamlico county. On February 24, 2021, Kenneth Franklin Hill, Jr., 47, pled guilty to related to the distribution of methamphetamine, heroin, and cocaine.
According to court documents and other information presented in court, Hill’s prosecution is the result of an investigation, led by this Office in conjunction with local, state, and federal authorities, into several drug traffickers operating in Pamlico and Craven counties. After conducting several controlled purchases of methamphetamine from Hill, authorities arrested him on December 9, 2019. That day, Hill led Pamlico County Sheriff’s Deputies on a high-speed chase, ramming patrol cars and running a school bus full of children off the road. The chase ended before any serious injuries occurred when Deputies fired shots at Hill’s vehicle, disabling it.
In total, investigators attributed over 2,000 grams of cocaine, 1,000 grams of methamphetamine, and 1,200 grams of heroin to Hill – drugs that were distributed into the community from 2016 until his arrest on December 9, 2019. As the Court noted in today’s hearing, a 292-month sentence ensures a message is sent to the citizens of Pamlico County: decades of planting seeds of poison in a community will end in a significant and detrimental harvest.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. Pamlico County Sheriff’s Office, Homeland Security Investigations, and the District Attorney’s Office for the Prosecutorial District 4 assisted with the investigation of the case and Assistant U.S. Attorney J.D. Koesters 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. 4:20-CR-85-D.
26 August 2021
Wilmington Armed Drug Trafficker Receives 117 Months in Federal PrisonRead the Press Release
RALEIGH, N.C. – Jonathan Marquis Sanders, 29, of Wilmington, was sentenced yesterday to 117 months in prison for Distribution of a Quantity of a Mixture of Heroin and Fentanyl, Possession with Intent to Distribute a Quantity of Heroin, Fentanyl and Cocaine and Possession of a Firearm in Furtherance of a Drug Trafficking Crime.
According to court documents, evidence presented in court and other documents, on August 21, 2020, the Wilmington Police Department made a controlled purchase of 200 bags of a mixture of heroin and fentanyl from Sanders on Davie Avenue in Wilmington. Sanders was on a GPS monitor related to a New Hanover County Court matter at the time of this drug deal. On October 1, 2020, Wilmington Police Narcotics Detectives executed a search warrant at Hearthside Drive in Wilmington. Law enforcement found more than 850 bags of a heroin/fentanyl mixture, a quantity of cocaine, a cutting agent, and a loaded .380 caliber handgun. Sanders used the residence as a stash house. Sanders was on probation for Possession with the Intent to Sell or Deliver Heroin at the time of the search of the residence.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Holly Ridge Police Department, the Bureau of Alcohol, Tobacco and Firearms, the Federal Bureau of Investigation and the Wilmington Police Department 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. 7:20-cr-00179-BO-1.
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West Linn Man Pleads Guilty for Role in Real Estate, Agriculture, and Mining Investment SchemesRead the Press Release
PORTLAND, Ore.—A West Linn, Oregon man pleaded guilty today for posing as a successful real estate developer, hemp seed cultivator, and owner of a precious metals mining venture to fraudulently obtain millions of dollars from individual investors and lenders.
David A. Shelofsky, 53, pleaded guilty to one count each of wire fraud and money laundering.
According to court documents, beginning in 2013, in Oregon and elsewhere, Shelofsky knowingly and intentionally devised several different investment fraud schemes. Shelofsky falsely told prospective investors and lenders that he had successful real estate development projects in Bend, Oregon and West Linn and a successful hemp seed cultivation and distribution venture in West Linn. During the same time period, Shelofsky and two other individuals formed a precious metals mining operation that purportedly used a proprietary mining technique to extract precious metals from the sand tailings of other mining operations. While the group made minimal efforts to operate the venture, Shelofsky misled several investors about the status of the operation to fraudulently obtain funds.
Shelofsky made repeated and deliberate misrepresentations and false promises about the status and success of his various ventures, the purported returns investors would receive, and the existence of collateral pieces of real estate supposedly backing investments. Shelofsky employed the services of others to further his schemes and establish his credibility, including a lawyer to create legal documents and an assistant to open bank accounts in the names of several limited liability corporations. Shelofsky used investor funds for personal expenses and to support his own high standard of living. Dozens of individual investors and lenders lost millions of dollars as a result of Shelofsky’s schemes.
On June 5, 2020, Shelofsky was charged by criminal complaint with wire fraud and money laundering. Later, on October 20, 2020, a federal grand jury in Portland returned a 17-count indictment charging Shelofsky with wire fraud and money laundering.
Shelofsky faces a maximum sentence of 30 years in prison; a $500,000 fine or twice the gross pecuniary gains or losses resulting from his offense, whichever is greater; and three years of supervised release. He will be sentenced on November 12, 2021 before U.S. District Court Judge Michael H. Simon.
As part of the plea agreement, Shelofsky has agreed to pay no less than $3.3 million in restitution to his victims and forfeit any criminally derived proceeds identified by the government prior to sentencing. Under the terms of the plea agreement, the government can and will argue for a restitution order greater than $3.3 million, but not to exceed $16 million.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by IRS Criminal Investigation and the FBI. Assistant U.S. Attorney Claire M. Fay is prosecuting the case.
Two New Jersey Men Arrested for Mail Theft/Bank Fraud SchemeRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man and an Essex County, New Jersey man were arrested in connection with two criminal complaints charging them with scheming with U.S. Postal Service employees and others to commit mail theft, bank fraud, and aggravated identity theft, Acting U.S. Attorney Rachael A. Honig announced.
Yaseen Salih, 24, of Iselin, New Jersey, and Adeeb Salih, 29, of East Orange, New Jersey, were charged by complaint with conspiracy to commit bank fraud, conspiracy to commit mail theft and to possess stolen mail, and aggravated identity theft. Yaseen Salih was arrested today and made his initial appearance before U.S. Magistrate Judge André M. Espinosa and was detained. Adeeb Salih remains at large. Hakir Brown, 27, of Newark was arrested today and charged by way of a separate complaint with bank fraud, conspiracy to commit mail theft and to possess stolen mail, and aggravated identity theft. He is scheduled to make his initial appearance tomorrow.
According to documents filed in this case and statements made in court:
USPS employees Khadijah Banks Oneal and Ashley Taylor stole envelopes containing credit cards, checks, and U.S. Treasury checks from the mail. From Dec. 12, 2020, to July 31, 2021, Taylor sold stolen mail to Yaseen Salih; from Jan. 30, 2020, until her arrest on July 28, 2021, Banks Oneal sold stolen mail to Jahad Salter and Dashaun Brown and supplied stolen mail to Hakir Brown. Yaseen Salih and Adeeb Salih, Hakir Brown, Salter, and Banks Oneal, fraudulently posed as the accountholders of stolen credit cards, called the banks that issued the stolen credit cards, and used personal identifying information belonging to the accountholder to obtain or change information about the stolen credit cards. They then used the stolen credit cards to, among other things, make purchases at retail stores in New Jersey and elsewhere, including New York and online, resulting in attempted losses of over $300,000. Adeeb Salih deposited stolen checks into bank accounts that were under his control to obtain the checks’ proceeds.
The charges of bank fraud and conspiracy to commit bank fraud each carry a statutory maximum sentence of 30 years in prison and a maximum fine of $1 million. The charges of mail theft and possession of stolen U.S. Mail, and conspiracy to commit that offense, each carry a statutory maximum sentence of five years in prison and a maximum fine of $250,000, or twice the gain or loss from the offense, whichever is greatest. The aggravated identity theft charge carries a mandatory sentence of two years in prison, which must be served consecutively to any sentence imposed for bank fraud, and a maximum fine of $250,000, or twice the gain or loss from the offense, whichever is greatest.
The following defendants were also charged in late July and early August 2021 in connection with this scheme:
- Banks Oneal, 30, of Newark, was charged by complaint on July 28, 2021, with conspiracy to commit access device fraud and mail theft. She was arrested the same day, and on July 29, 2021, appeared before Judge Espinosa, and was released on a $30,000 bond. At the time of her arrest, Banks Oneal was employed by the USPS at a mail processing facility in Kearny, New Jersey.
- Salter, 25, of Newark, was charged by complaint on July 29, 2021, with conspiracy to commit access device fraud and conspiracy to commit mail theft. He was arrested on August 9, 2021, appeared before U.S. Magistrate Judge Mark Falk, and was detained.
- Dashaun Brown, 30, of Newark was charged by complaint on July 29, 2021 with access device fraud and mail theft. A warrant was issued for his arrest, and he remains at large.
- Taylor, 27, of Bronx, New York, was charged by complaint on Aug. 2, 2021, with conspiracy to commit mail theft and, as a federal employee, accepting bribes. She was arrested on Aug. 3, 2021, appeared before U.S. Magistrate Judge Cathy L. Waldor, and was released on a $30,000 bond. At the time of her arrest, Taylor was employed by the USPS at a post office in New York, New York.
Acting U.S. Attorney Honig credited postal inspectors of the U.S. Postal Inspection Service under the direction of Acting Inspector in Charge Rodney M. Hopkins, Newark Division; and special agents of the U.S. Postal Service, Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent in Charge Matthew Modafferi, with the investigation leading to the charges. She also thanked the U.S. Marshals Service, District of New Jersey, under the direction of Marshal Juan Mattos Jr.; the U.S. Secret Service, New York Field Office, under the direction of Special Agent in Charge Patrick J. Freaney; the Treasury Inspector General for Tax Administration, Mid-Atlantic Field Division, under the direction of Special Agent in Charge Andrew S. McKay; the Department of Homeland Security, Homeland Security Investigations, Newark Field Office, under the direction of Special Agent in Charge Jason J. Molina; the Livingston, New Jersey Police Department, under the direction of Chief Gary Marshuetz; the Newark Police Department, under the direction of Department of Public Safety Director Brian O’Hara; the Essex County, New Jersey Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura; the New Providence, New Jersey, Police Department, under the direction of Chief of Police Theresa A. Gazaway; and the Berkeley Heights, New Jersey, Police Department, under the direction of Chief of Police Jason Massimino, for their assistance.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the Special Prosecutions Division in Newark.
The charges and allegations contained in the complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Three Guilty in Transnational East Texas Call Center Fraud SchemeRead the Press Release
TYLER, Texas – Three former Texans now living in Louisiana have pleaded guilty to federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Ronnie Duane Booth, 38, and Mary Elizabeth Beaman Booth, 40, both formerly of Forney, pleaded guilty on August 24, 2021 to aiding and abetting an unlicensed money transmitting business. Tracey Brookshier, 52, formerly of Kingsville, pleaded guilty to the same charge on August 25, 2021 before U.S. Magistrate Judge John D. Love.
“Defrauding elder persons of their life savings deprives them of a secure future and causes significant emotional distress to both the victim and their families,” said Acting U.S. Attorney Nicholas J. Ganjei. “EDTX is committed to holding accountable those who unconscionably prey on our senior citizens and other vulnerable populations.”
“These developments demonstrate the commitment of the Treasury Inspector General for Tax Administration to investigate and bring to justice those that victimize the American taxpayer,” said J. Russell George, the Treasury Inspector General for Tax Administration. “The defendants engaged in multiple scams, often targeting the most vulnerable members of society. The success of this investigation is the result of a collaborative effort between multiple Federal law enforcement agencies and the dedicated staff at the United States Attorney’s Office.”
According to information presented in court, the three defendants were part of a scheme which involved call center fraudulent solicitations of various kinds, including home mortgage modifications, personal loans, repayment of Social Security benefits, and IRS demands for payment. Victims were contacted by an overseas call center and instructed to make payments through various money service businesses or by mailing payments to specified addresses. The Booths and Brookshier were recruited to pick up those payments from the money service businesses or receive them in the mail. They would then deposit them into accounts as instructed by others involved in the scheme. One such co-conspirator, Jeremy Christopher Jones, pleaded guilty to conspiracy to commit money laundering in June.
Brookshier admitted to being responsible for collecting and depositing approximately $126,000 in victim proceeds, Mary Booth admitted to being responsible for picking up and depositing approximately $155,000 in victim proceeds, and Ronnie Booth admitted to picking up and depositing approximately $91,000 in victim proceeds. The overall scheme involved approximately $3.2 million in victims’ payments and almost 2000 victims, many of whom are elderly.
The defendants each face up to five years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 10am-6pm Eastern Time, Monday-Friday. English, Spanish, and other languages are available.
This case is being investigated by the Internal Revenue Service-Criminal Investigation, the U.S. Treasury Inspector General for Tax Administration (TIGTA), U.S. Secret Service, and Housing and Urban Development-Office of Inspector General. This case is being prosecuted by Assistant U.S. Attorneys Frank Coan and Alan Jackson.
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Texas Man Pleads Guilty to Unemployment Benefits Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – A Woodlands, Texas, man pleaded guilty today for his role in an unemployment insurance benefits scheme to defraud the California Employment Development Department (EDD).
According to court documents and admissions made in court, around May 2020, Paul Andrew Naeger (38) and his co-conspirators began submitting fraudulent unemployment insurance claims with the EDD, using other people’s personal identifying information without their consent. Some of the EDD debit cards associated with those fraudulent unemployment claims were mailed to rental mailboxes in Santa Clarita, Los Angeles, and Sherman Oaks. The debit cards were used for cash withdrawals and to purchase goods and services. In total, EDD approved at least $334,230 in benefits for the fraudulent claims. Naeger and his co-conspirators used at least $164,137 of the unemployment insurance benefits, including to pay for Naeger’s bail after he was arrested and detained on unrelated state charges in Houston, Texas.
Naeger pleaded guilty to one count of conspiracy to effect illegal transactions with access devices and one count of aggravated identity theft. U.S. District Judge James C. Mahan scheduled sentencing for December 1, 2021. Naeger faces statutory maximum penalties of seven and a half years in prison and a $250,000 fine for conspiracy to effect illegal transactions with access devices, and two years in prison for aggravated identity theft.
Co-defendant Brittany Danielle Griesel has pleaded guilty and is awaiting sentencing. Co-defendant Kenneth Edward Greenland has been indicted by a grand jury and is currently awaiting trial.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Quentin Heiden of the U.S. Department of Labor Office of Inspector General (DOL-OIG), Los Angeles Region made the announcement.
This case was investigated by the DOL-OIG. Assistant U.S. Attorney Jim Fang is prosecuting the case.
In May, 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 Hotline at 866-720-5721 or via the NCDF web complaint form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Tennessee Woman Sentenced to over 2 Years in Prison for Submitting False Claims for Unclaimed PropertyRead the Press Release
SACRAMENTO, Calif. — Marilyn Cook (also known as Marilyn Powell and Marilyn Sunset), 58, of Alcoa, Tennessee, was sentenced today to two years and five months in prison for filing false claims for unclaimed property held by the California State Controller’s Office Unclaimed Property Division, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, in August and September 2014, Cook, using the alias Marilyn Sunset, committed a scheme to defraud by filing false claims with the Division of Unclaimed Property for properties belonging to the United States Marshals and others. For each claim, Cook certified under penalty of perjury that she was entitled to claim the identified properties. Cook used a State of Tennessee Identification Card that she obtained in the name Marilyn Sunset to have certain claim forms notarized as required by the Unclaimed Property Division. Cook also submitted fictitious documents in support of her claim, including a letter on Department of Justice letterhead that falsely purported to have been signed by a former Assistant Attorney General, authorizing Sunset to collect properties on behalf of the U.S. Marshals. In all, Cook falsely claimed 128 properties totaling $398,537. The Unclaimed Property Division identified the claims as fraudulent and did not disperse any property to Cook.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Shelley D. Weger prosecuted the case.
Stockton Man Pleads Guilty to Sex Trafficking of a ChildRead the Press Release
SACRAMENTO, Calif. — Angel Jesus Sanchez-Manriquez, 22, of Stockton, pleaded guilty today to sex trafficking of a child, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, between October and December 2020, Sanchez-Manriquez posted approximately 70 advertisements on a prostitution website, each of which contained images of a 16-year-old victim and advertised the victim’s availability to perform commercial sex acts for sex buyers. Sanchez-Manriquez paid for motel rooms in and around the Stockton area for that purpose. Following execution of search warrants, law enforcement agents determined that Sanchez-Manriquez also used his cellphone to record images and videos of his victim engaged in sexual acts with adults such as himself.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Brian Fogerty and Sam Stefanki are prosecuting the case.
Sanchez-Manriquez is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on Dec. 2, 2021. Sanchez-Manriquez faces a maximum statutory penalty of life in prison (with a mandatory minimum of 10 years in prison), a $250,000 fine, and a lifetime term of supervised release. 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 was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.