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Wednesday 14 July 2021
Illinois Felon Convicted in Iowa After Possessing a Gun and Drugs Inside a Cedar Rapids Wal-MartRead the Press Release
A convicted felon, who possessed drugs he intended to distribute and a gun inside a Wal-Mart, was convicted by a jury on July 13, 2021, after a two-day trial in federal court in Cedar Rapids.
Sylvester Cunningham, age 41, from Blue Island, Illinois, was convicted of being a felon in possession of a firearm, possessing crack and powder cocaine with the intent to distribute, and possessing a firearm in furtherance of a drug trafficking crime. The verdict was returned following about six hours of jury deliberations.
The evidence at trial showed that at about 11:00 A.M. on August 7, 2020, Cunningham, who was in a wheelchair, entered the vestibule of a Wal-Mart store in Cedar Rapids. Cunningham moved from his wheelchair into a Wal-Mart electric shopping cart. A short time later, while helping Cunningham look for a lost cellphone, a Wal-Mart employee lifted the cushion of Cunningham’s wheelchair and saw a .357 caliber revolver.
The employee alerted an off-duty Cedar Rapids Police Department officer who was providing security for the store. The officer retrieved the gun. After finding out that Cunningham was on federal supervised release for a prior gun charge, police officers arrested him. While searching him as part of the arrest, officers located thirteen individual baggies of crack and powder cocaine concealed in Cunningham’s clothing.
Prior to August 7, 2020, Cunningham had received two felony convictions. First, in 2004, Cunningham was convicted of felony operating while intoxicated in Illinois. Second, in 2012, Cunningham was convicted of being a felon in possession of a firearm in the federal district court for the Northern District of Iowa. In the 2012 case, Cunningham was found in possession of a rifle after he crashed the car he was driving in Cedar County, Iowa.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Cunningham was taken into custody by the United States Marshal after the verdict was returned and will remain in custody pending sentencing. Cunningham faces a mandatory minimum sentence of five years’ imprisonment and a possible maximum sentence of life imprisonment, a $1,500,000 fine, and up to life on supervised release following any imprisonment.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and Special Assistant United States Attorney Devra Hake and investigated by the Cedar Rapids Police Department and the Cedar Rapids Safe Streets Task Force. The task force is composed of representatives from the Federal Bureau of Investigation, the Marion Police Department, and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-104.
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Husband and Wife Convenience Store Owners Sentenced to Prison and Ordered to Pay Restitution for Fraud Involving SNAP ProgramRead the Press Release
Jacksonville, Florida – U.S. District Judge Maria Morales Howard has sentenced Russell Leroy Dotson, Jr. (63, Jacksonville) and his wife, Maria Luisa Dotson (66, Jacksonville), to 18 months in federal prison each for conspiracy to commit wire fraud involving the U.S. Department of Agriculture’s Supplemental Nutrition Assistance Program (SNAP). The court also ordered the couple to pay $257,919.10 in restitution and entered an order of forfeiture for the same amount against each of them.
Russell Dotson had pleaded guilty on July 26, 2019, and Maria Dotson had pleaded guilty on August 7, 2019.
According to court documents, the Dotsons owned and operated Asmarina Food Mart, which had two locations in Jacksonville. When the Dotsons opened their stores, they applied for and received approval from the Food and Nutrition Service, an agency of the U.S. Department of Agriculture, to participate in SNAP, a program that supplements the food budget of needy families so they can purchase healthy food and move towards self-sufficiency. (Until 2008, SNAP was known as the Food Stamp Program.)
Once the Dotsons received this approval, they trained their employees on ways to conduct fraudulent transactions with SNAP recipients using their Electronic Benefit Transfer (EBT) cards, a type of debit card. Specifically, the Dotsons instructed their employees to ring up fraudulent transactions to make it appear that SNAP recipients had purchased eligible food products from the store using their EBT cards, when the recipients actually purchased nothing at all or actually purchased items not eligible under the SNAP program. The employees then gave the SNAP recipients cash representing approximately one-half of the purported value of the fraudulent transaction, while the Dotsons kept the remainder of the money. Over approximately 27 months, Russell and Maria Dotson defrauded the United States out of $257,979.10.
“This type of corruption involving fraud against the Supplemental Nutrition Assistance Program has managed to defraud American taxpayers and take money out of the hands of people who desperately need that assistance,” said Special Agent in Charge Glen M. Kessler of the U.S. Secret Service. “The U.S. Secret Service and our partners are always willing to take prompt and coordinated actions to hold these criminals responsible for placing personal greed above the good of the public.”
“The owners of Asmarina Food Mart created an illegal benefits exchange system that denied healthy foods to needy children and their families. Any retailer who chooses to defraud taxpayers through such schemes will continue to be aggressively investigated and prosecuted by USDA-OIG and its law enforcement partners,” stated Jason Williams, Special Agent in Charge, USDA-OIG.
This prosecution was part of a long-term investigation into SNAP fraud occurring at both Asmarina Food Mart locations in Jacksonville. To date, 12 other individuals, including employees of Asmarina Food Mart and SNAP recipients, have pleaded guilty and have been sentenced for their roles in this scheme (Shelly Rowe Sullivan, Teighlor Michelle Wicker, Tracy Lynn Hammock, Shannon Marie Whaley, Denise Diane Taylor, Ormetre Patterson, Cierra Elizabeth White, Laura Lockwood, Shanelle Bryant, Felicia Meadows, Theresa Marie Paschall, and Latosha Ransome Monroe) and collectively have been ordered to pay a total of $249,829.67 in restitution to the United States.
This case was investigated by the Jacksonville Sheriff’s Office, the United States Secret Service - Jacksonville Field Office, and the United States Department of Agriculture - Office of Inspector General. It was prosecuted by Assistant United States Attorney Kevin C. Frein.
Anyone who is aware of or suspects fraud involving SNAP benefits should visit https://www.usda.gov/oig/hotline or call 800-424-9121.
Fourth Oregon Bull Trout Poacher Sentenced in Federal Court After Coordinated Law Enforcement OperationRead the Press Release
PORTLAND, Ore.—Tyler Glenn Chance Warren, 31, of Pendleton, Oregon, was sentenced to three years’ federal probation, a $1,000 fine, 40 hours of community service, and a three-year fishing ban after illegally taking bull trout from the Metolius River in the Deschutes National Forest.
Warren is the fourth Oregon resident convicted in federal court for illegally taking bull trout from area waters since Operation No Bull, a coordinated anti-poaching law enforcement operation, launched in 2017. Since its inception, the operation has resulted in criminal charges, civil penalties, or citations for more than 30 bull trout poachers in federal, state, and Tribal courts.
According to court documents, on December 3, 2017, Warren and co-defendant Thomas R. Campbell, 30, of Culver, Oregon, illegally took several bull trout from the Metolius River and the Eyerly Property, a portion of protected land adjacent to the Metolius near its confluence with Lake Billy Chinook. The Eyerly Property is held in trust by the U.S. for the Confederated Tribes of Warm Springs and only accessible to tribal members.
On December 4, 2017, Campbell posted a photo on Instagram of himself holding a juvenile bull trout. Another Instagram post showed Warren holding a bull trout on the Metolius. Investigators later found more photos on Campbell’s phone including several that Campbell and Warren had texted to each other on December 3. One of the photos depicted Warren holding a bull trout over a cast iron pan containing steaming fish meat. Another depicted Warren holding a dead bull trout with a beer can wedged in its mouth. Warren transported the fish to his residence in Redmond where he texted Campbell two additional photos of Ziploc bags filled with bull trout fillets. Investigators believe Warren took at least four bull trout from the Metolius on December 3, but the exact number is unknown.
On September 9, 2019, Warren, Campbell, and a third co-defendant, Joshua Alan Hanslovan, 29, of Albany, Oregon, were charged by criminal information with violating the Lacey Act. All three men later waived indictment and pleaded guilty. On November 23, 2020, Campbell was sentenced to five years’ federal probation, a $6,000 fine, and 300 hours of community service ordered to be served on habitat restoration and conservation projects. On June 16, 2021, Hanslovan was sentenced to three years’ federal probation, a three-year angling ban, and 125 hours of community service. On December 7, 2021, a fourth poacher, Tyrone T. Wacker, 42, of Culver, Oregon was sentenced in a separate criminal case to five years’ probation, a three-year angling and hunting ban, a $1,000 fine, and 90 hours of community service.
The fines issued as part of federal sentences in these cases were ordered to be paid to the Lacey Act Reward Account, a fund used to provide monetary awards to those who provide information about wildlife crimes and to pay costs incurred caring for fish, wildlife or plants held as evidence in ongoing investigations.
Bull trout are listed as threatened under the Endangered Species Act and are vulnerable to overfishing. Poaching represents a lethal threat to their recovery. Today, bull trout inhabit less than half of their historic range. Central Oregon’s Metolius River is an important spawning ground for the fish and helps to populate other waters. Bull trout are revered by anglers and are an important Tribal resource.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the U.S. Fish and Wildlife Service Office of Law Enforcement; Oregon State Police Fish and Wildlife Division; Confederated Tribes of Warm Springs, Branch of Natural Resources; and U.S. Forest Service Law Enforcement and Investigations. It was prosecuted by Will McLaren and Pam Paaso, Assistant U.S. Attorneys for the District of Oregon.
The U.S. Fish and Wildlife Service is responsible for protecting America’s wildlife from poaching, illegal commercialization, and other kinds of wildlife crime. If you have information related to a wildlife crime, please call 1-844-FWS-TIPS (1-844-397-8477) or email [email protected].
Former USPS Employee Sentenced to Prison for Stealing MailRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that MICHAEL McGUIRK, 37, of Windham, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to three months of imprisonment, followed by three years of supervised release, for theft of mail by a postal employee.
According to court documents and statements made in court, between September 2019 and May 2020, while he was employed as a sales associate at the U.S. Post Office in Columbia, McGuirk stole numerous pieces of mail, including packages and greeting cards that contained gift cards or other items of value. Surveillance camera footage depicted McGuirk in the Columbia Post Office rifling through the mail, concealing mail in his clothing, opening packages and envelopes, and taking cash from the reserve cash register.
The investigation further revealed that McGuirk attempted to sell some of the items he stole from the mail on eBay.
Judge Bryant ordered McGuirk to pay $5,774.70 in restitution.
McGuirk resigned from the USPS in May 2020. He pleaded guilty to the offense on March 30, 2021.
McGuirk, who is released on bond, is required to report to prison on September 14, 2021.
This matter was investigated by the U.S. Postal Service Office of the Inspector General and prosecuted by Assistant U.S. Attorney Tara E. Levens.
Individuals who believe they are a victim of mail theft are encouraged to file a complaint by calling 888-USPS-OIG, or by visiting https://www.uspsoig.gov/form/file-online-complaint.
Former Treasurer of Perry County Agricultural Society Indicted for FraudRead the Press Release
PINCKNEYVILLE, Ill. – The former treasurer of the Perry County Agricultural Society (“PCAS”) is
under federal indictment for defrauding the PCAS out of more than $100,000. Billy E. Harris, 47, is
charged with 10 counts of mail fraud. Harris served as the treasurer of the PCAS from 2011-2018 and
currently lives in St. Louis, Missouri.The PCAS operates all the festivals at the Perry County Fairgrounds in Pinckneyville, including the
Perry County Fair. According to the indictment, from June 5, 2012, through October 3, 2018, Harris
used the PCAS bank account to pay his personal expenses and purchase items for his personal use.
The indictment lists many of the personal items Harris allegedly purchased using PCAS
funds, including a WiFi router, Apple AirPods, a Himalyan salt lamp air purifier, Darth Vader and
Yoda personalized pet tags, a pair of Star Wars men’s sleep pants, a floating pool fountain, a CPAP
tube cleaning brush, and “beard lube.” Many of the items were allegedly purchased through Amazon.
Harris is also charged with writing checks on the PCAS account payable to himself and his spouse
and forging a PCAS board member’s signature on the checks.Harris is scheduled to make his initial court appearance on July 19, 2021, before U.S. Magistrate
Judge Reona Daly of the U.S. District Court for the Southern District of Illinois. If convicted, he
faces a maximum penalty of 20 years in prison on each count. A federal district court judge will
determine any sentence after considering the U.S. Sentencing Guidelines and other statutory
factors.An indictment is merely an allegation and all defendants are presumed innocent until proven guilty
beyond a reasonable doubt in a court of law.The St. Louis Office of the U.S. Postal Inspection Service and the Pinckneyville Police Department
are investigating the case, with assistance from the Perry County State’s Attorney’s Office.
Assistant U.S. Attorney Scott Verseman is prosecuting the case.
Former Chicago Public Schools Principal Charged in Scheme to Fraudulently Obtain Overtime PayRead the Press Release
CHICAGO — A federal grand jury has indicted a former Chicago Public Schools principal on fraud charges for allegedly scheming to fraudulently obtain overtime pay.
A ten-count indictment returned Tuesday in U.S. District Court in Chicago alleges that SARAH JACKSON ABEDELAL carried out the fraud scheme from 2012 to 2019 while serving as Principal of Brennemann Elementary School on the North Side of Chicago. Abedelal told certain school employees that she would authorize overtime pay for hours the employees would not be required to work, and she directed them to then deliver the proceeds of the unearned overtime to Abedelal or another individual, the indictment states. Abedelal told the employees who received the overtime that the money would be used to pay legitimate school expenses incurred by Brennemann Elementary, when, in fact, Abedelal intended to convert the money to her own personal use, the indictment states. The charges allege that Abedelal fraudulently obtained at least $200,000 in CPS money through the scheme.
Abedelal, 57, of Chicago, is charged with ten counts of wire fraud. She was arrested this morning and is scheduled to make an initial appearance in federal court today at 2:30 p.m. before U.S. Magistrate Judge Heather K. McShain.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Will Fletcher, Inspector General of the Chicago Board of Education, Office of Inspector General. The government is represented by Assistant U.S. Attorneys Terry M. Kinney and Patrick Mott.
According to the indictment, Abedelal directed the school employees to withdraw the unearned overtime money in cash on the day the paychecks were deposited into their bank accounts. Abedelal would then meet with the employees individually in her office or classrooms to collect the cash from them, the indictment states. To conceal and prevent detection of the scheme, Abedelal used the fraudulently obtained money to purchase money orders at a currency exchange and then pay her personal expenses, including the mortgage on her home, the indictment states.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count of wire fraud is punishable by up to 20 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Final Defendant Sentenced in Eleven-Defendant Battle Creek Drug Trafficking ConspiracyRead the Press Release
GRAND RAPIDS, MICHIGAN —United States Attorney Andrew Birge announced today that on July 12, 2021, Ricardo Mercado-Lozano, also known as Heriberto Diaz-Lozano and Eddie Diaz, a citizen of Mexico and resident of Greenwood, Indiana, was sentenced to 292 months in prison by U.S. District Judge Paul L. Maloney for his role as a regional supplier in an eleven-defendant, multistate drug trafficking conspiracy. Mercado-Lozano was the final defendant sentenced.
The drug-trafficking conspiracy was led in Michigan by co-defendant Andrew Bravo of Battle Creek. Bravo’s drug-trafficking organization distributed kilograms of cocaine and crystal methamphetamine, and quantities of heroin, fentanyl, ecstasy, and kilograms of marijuana, in and around Battle Creek and Kalamazoo between May 2017 and December 2019. Bravo pleaded guilty to the drug-trafficking conspiracy on June 4, 2020 and was sentenced to 264 months in prison on October 5, 2020 by Judge Maloney.
Mercado-Lozano, a self-admitted associate of the Sinaloa cartel, was a regional supplier of kilograms of cocaine and quantities of crystal methamphetamine to Bravo, who further distributed the controlled substances to other individuals in Battle Creek and Kalamazoo. In addition to supplying Bravo in Battle Creek, Mercado also supplied drug traffickers around Louisville, Kentucky. On December 17, 2018, investigators stopped a vehicle carrying approximately seven pounds of methamphetamine after leaving Mercado-Lozano’s residence in Kentucky. In 2015, Mercado-Lozano was deported to Mexico following a five-year prison sentence on a felony kidnapping conviction out of Riverside County, California.
In announcing the sentence, U.S. Attorney Birge stated, “These convictions and sentences are the result of a long-term, multi-agency investigation into the drug trafficking of Andrew Bravo and his co-conspirators, who distributed cocaine, crystal methamphetamine, heroin, fentanyl, and marijuana, among other controlled substances, into the Battle Creek and Kalamazoo communities for years. The U.S Attorney’s Office is committed to bringing traffickers of dangerous drugs to justice no matter how long it takes. Our local communities are now safer with these individuals off the streets.”
"HSI special agents specialize in conducting long-term multi-national investigations against some of the most sophisticated criminals on the planet,” said Homeland Security Investigation’s Special Agent in Charge Vance Callender. “This is now the twelfth individual convicted for participating in a now defunct conspiracy to smuggle drugs from Mexico, through California, to western Michigan.” (A twelfth defendant pled guilty to related charges in California and awaits sentencing there.)
HSI and the Battle Creek Police Department (BCPD) began the investigation into Bravo’s drug-trafficking organization in mid-2017, in partnership with the Drug Enforcement Administration (DEA), Internal Revenue Service Criminal Investigation (IRS-CI), Michigan State Police (MSP), Emmett Township Police Department, Kalamazoo Department of Public Safety, St. Joseph Police Department, Calhoun County Sheriff’s Department, Indiana State Police, and Kalamazoo County Sheriff’s Office.
“Some of the best work we ever get to do in complex investigations like this one is the work we do jointly with our state and federal partners,” said Jim A. Blocker, Chief of Police, City of Battle Creek Police Department. “Our community is safer, we are better, and jointly we are all grateful on behalf of the many families wrongly impacted by these criminal enterprises."
“Through collaboration with our federal, state and local enforcement partners, we are making major progress in thwarting the drug cartels in their operations in western Michigan,” said DEA Special Agent in Charge Keith Martin. “We will continue to work to ensure that criminals who peddle in these poisons and wreak havoc in our communities will face consequences for their criminal activities.”
In December 2019, during the arrests of the defendants and execution of associated search warrants in this case, federal and state investigators seized quantities of cocaine, fentanyl, heroin, over a kilogram of crystal methamphetamine, over 50 pounds of processed marijuana, over 300 marijuana plants, other controlled substances, three handguns, and over $50,000 in drug proceeds. The eleven defendants, their crimes of convictions, and sentence information are as follows:
Defendant
City
Conviction(s)
Sentence
Andrew Rolando Bravo
Battle Creek
- Conspiracy to Manufacture, Distribute and Possess with Intent to Distribute Controlled Substances (including 50 grams or more of Methamphetamine and 100 kilograms or more or 100 plants of Marijuana)
264 months
in prison
Ricardo Mercado-Lozano
also known as
Heriberto Diaz-Lozano and
Eddie Diaz
Greenwood, Indiana
- Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances (including 500 grams or more of Cocaine)
292 months
in prison
Mark Anthony Mosley
Battle Creek
- Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances (including 50 grams or more of Methamphetamine)
200 months
in prison
Christopher Michael Dreams
Battle Creek
- Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances (including 50 grams or more of Methamphetamine)
168 months
in prison
Rodney C. Compton, Jr.
Kalamazoo
- Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances (including 50 grams or more of Methamphetamine)
100 months
in prison
Erineo Wallace
Lansing
- Conspiracy to Distribute and Possess with Intent to Distribute 50 grams or more of Methamphetamine, Cocaine, and MDMA or Ecstasy
60 months
in prison
Troy Edward Bush
Kalamazoo
- Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances (including 50 grams or more of Methamphetamine)
120 months
in prison
Stacey Parcell Gibson
Battle Creek
- Conspiracy to Distribute and Possess with Intent to Distribute Cocaine
- Possession with Intent to Distribute Cocaine
84 months
In prison
Wayne Henry Hawley
Battle Creek
- Conspiracy to Distribute and Possess with Intent to Distribute Heroin, Cocaine, and Methamphetamine
120 months
in prison
Cory Karl Cadieux
Hudsonville
- Conspiracy to Manufacture, Distribute, and Possess with Intent to Distribute 50 kilograms or more of Marijuana
37 months
in prison
Jeremiah E. Smith
Kalamazoo
- Unlawful Use of a Communication Facility to Cause or Facilitate the Commission of Felonies under the Controlled Substances Act
Time served and 1-year supervised release
This prosecution, dubbed Operation After Hours, was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was prosecuted by Assistant United States Attorneys Daniel T. McGraw and Vito S. Solitro.
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Federal Indictment Accuses Chicago Man of Producing Child PornographyRead the Press Release
CHICAGO — A Chicago man who allegedly used and attempted to use several minors to engage in sexually explicit conduct and surreptitiously recorded it has been indicted on federal child pornography charges.
MICHAEL PORTER, 55, is charged with seven counts of production and attempted production of child pornography, two counts of receipt of child pornography, and one count of possession of electronic devices containing child pornography, according to an indictment returned Tuesday in U.S. District Court in Chicago. Arraignment is set for July 22, 2021, at 11:00 a.m., before U.S. Magistrate Judge Jeffrey T. Gilbert.
According to the charges, Porter produced the child pornography after using, persuading, inducing, and enticing several minors to engage in sexually explicit conduct. He also possessed four hard drives, a cell phone, and a laptop computer that contained pornographic images of a prepubescent minor and a minor who had not attained 12 years of age, the indictment states.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorney Kristen Totten.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each production count is punishable by a minimum sentence of 15 years in federal prison and a maximum of 30 years. Each receipt count is punishable by a minimum sentence of five years and a maximum of 20 years. The possession count carries a maximum sentence of ten years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
If you believe you are a victim of sexual exploitation by Michael Porter, you are encouraged to contact the FBI Chicago Field Office by calling 1-312-421-6700.
Fort Washakie Child Predator Sentenced to 175 Months in PrisonRead the Press Release
Acting United States Attorney Bob Murray announced today that AVERY FITZGERALD BROWN, 27, of Fort Washakie, Wyoming was sentenced to 175 months of imprisonment, followed by 10 years of supervised release, by U.S. District Court Chief Judge Scott W. Skavdahl. In a change of plea hearing held on April 28, 2021, Brown pleaded guilty to charges of aggravated sexual abuse and abusive sexual contact of a minor. According to court records, the abuse occurred on the Wind River Indian Reservation, beginning in March of 2006 and lasting until October 2020, when one of the victims disclosed in a letter to a physician with the Indian Health Service multiple instances of sexual assault by Brown.
“This case demonstrates the incredible work performed by dedicated federal agents and community members who stood up for the victims and worked tirelessly to bring this abhorrent individual to justice,” said Acting U.S. Attorney Bob Murray. “It takes courage for any victim – especially child victims – to come forward and disclose sexual abuse. We should all be thankful that a young girl bravely spoke up and helped stop this defendant from hurting any other children.”
“The FBI and our local, state, tribal and federal partners work tirelessly to investigate and bring to justice individuals engaged in the exploitation and sexual abuse of minors. With this sentence, a dangerous child predator has been removed from the community with a clear message that sexual abuse of our vulnerable youth will not be tolerated,” said Denver FBI Special Agent in Charge Michael Schneider. “We are grateful to the dedication of our partners at the Wind River Police Department and the U.S. Attorney's Office for their efforts in this case and our shared commitment to protecting children.”
The investigation was conducted by the Federal Bureau of Investigation, Special Agent Adrianne N. Jahnke. Assistant United States Kerry J. Jacobson prosecuted the case.
Executive of International Factoring Company Indicted for $30 Million FraudRead the Press Release
An indictment was returned in federal court in Brooklyn yesterday charging Pushpesh Kumar Baid, also known as “PK Jain,” with wire fraud conspiracy and aggravated identity theft relating to a scheme to defraud investors in an international factoring company (the “Company”) of more than $30 million. Baid, the former Business Head of the Company, was previously arrested in January 2021 on a criminal complaint and will be arraigned on the indictment at a later date.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Thomas Fattorusso, Acting Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation (IRS-CI), announced the indictment.
“As alleged, Baid and his co-conspirators actively misled investors about the nature, operation and investment strategy of an international factoring company, which caused more than $30 million in losses,” stated Acting United States Attorney Kasulis. “This Office will vigorously prosecute defendants like Baid who commit fraud as part of a scheme to enrich themselves at their investors’ expense.”
“As alleged, Baid and his co-conspirators used lies and material misrepresentations to defraud an investment firm responsible for managing funds on behalf of dozens of investors. When the scheme ultimately failed, the investment firm faced losses in excess of $30 million. As today’s action should demonstrate, we are committed to bringing to justice those whose greed leads them to commit criminal financial fraud,” stated FBI Assistant Director-in-Charge Sweeney.
“Regardless of how sophisticated the scheme or what it is called, simply put, Baid stole millions of dollars from his clients who put their trust in him,” stated IRS-CI Special Agent-in-Charge Fattorusso. “Criminal investigators of the IRS operate worldwide specializing in tracing the money to uncover elaborate criminal enterprises.”
Factoring involves the sale of an invoice to a third-party for a discount. In a factoring transaction, the seller of an invoice obtains immediate funding from a buyer, and the buyer of an invoice makes a profit when the invoice is paid in full. The Company purported to be in the business of buying invoices.
As set forth in court filings, Baid was the Business Head of the Company, which purported to be involved in factoring. The Company represented itself as an international factoring business run by an executive team experienced in factoring invoices in particular industries and geographic regions. Between approximately April 2017 and October 2019, Baid and others at the Company conspired to defraud an investment firm (the “Investment Firm”), which made investments on behalf of approximately 50 investors. Specifically, Baid and his co-conspirators induced the Investment Firm to invest millions of dollars in the Company through a series of material misrepresentations about the individuals who purportedly operated the Company; the nature of the Company’s business; the relationship between the Company and the entities with which it was purportedly factoring invoices; and the ways in which investor funds would be used. In July 2019, the Investment Firm stopped receiving payments on invoices that it had factored through the Company, and ultimately suffered more than $30 million in losses related to those invoices. In April 2020, the Investment Firm filed for bankruptcy.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys David Gopstein and Alixandra Smith are in charge of the prosecution.
The Defendant:
PUSHPESH KUMAR BAID (also known as “PK Jain”)
Age: 40
Miami, FloridaE.D.N.Y. Docket No. 21-CR-367 (MKB)
East Baltimore Monument Street Drug Trafficking Organization Member and Associate Sentenced to Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander today sentenced George Drummond, age 51, of Baltimore, to four years in federal prison, followed by four years of supervised release for conspiracy to distribute fentanyl, heroin, cocaine, and crack cocaine in the Monument Street area of East Baltimore, and for possession with intent to distribute cocaine. On July 13, 2021, Judge Hollander sentenced co-defendant Ricardo Simon, age 41, also of Baltimore, to 42 months in federal prison, followed by four years of supervised release for the conspiracy.
The sentences were announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; and Commissioner Michael Harrison of the Baltimore Police Department.
“The Baltimore OCDETF Strike Force is a critical part of our strategy to make Baltimore safer by identifying and focusing on those groups responsible for the most violent crime in our city,” said Acting U.S. Attorney Jonathan F. Lenzner. “The Monument Street area is one of the first areas the Strike Force has targeted and we anticipate that Strike Force cases will make these neighborhoods safer for the law-abiding citizens that live there.”
According to their guilty pleas, in July of 2018, Drug Enforcement Administration (“DEA”) Strike Force Group 1 began an investigation of the Monument Street corridor in East Baltimore, which is known to support a high volume of street-level drug distribution and acts of violence associated with the drug trafficking. During the investigation, law enforcement identified multiple street-level drug trafficking “shops,” with the two most prominent located in the 400 block of North Montford Avenue at Jefferson Street (“the Montford DTO”) and in the 2400 block of East Monument Street at Port Street (the “Out the Mud,” or “OTM DTO”).
As detailed in their plea agreements, investigators identified Tony Solomon as a source of supply in the conspiracy and Drummond as Solomon’s associate. Simon was identified as a drug distributor for the OTM DTO. Drummond was responsible for packaging controlled dangerous substances as well as maintaining a stash location of controlled dangerous substances for members of the conspiracy, to include cocaine.
Specifically, Drummond admitted that he maintained a stash house at his residence in the 3200 block of Brighton Street in Baltimore, which he and his co-conspirators used for storing, cutting, and packaging drugs, as well as to meet with customers and conduct drug transactions. According to his plea agreement, on behalf of Solomon, Drummond delivered cocaine every two weeks from July 2018 to January 2019, to a co-conspirator to “cook” the powder cocaine into crack cocaine. On January 23, 2019, law enforcement executed a search warrant at Drummond’s residence and recovered: a firearm; 147 grams of a mixture containing fentanyl and heroin; one large and one small kilo press containing cocaine, heroin, and fentanyl; cutting agents and bags of gelatin capsules. Throughout the course of his involvement, it was reasonably foreseeable to Drummond, and within the scope of the conspiracy that he or other members of the conspiracy would distribute at least 3.5 kilograms but less than 5 kilograms of cocaine, as well as quantities of fentanyl and heroin, during the course of and in furtherance of the conspiracy.
According to Simon’s plea agreement, Simon engaged in multiple phone calls and other electronic communications with other members of the conspiracy during which they discussed the distribution of controlled substances, to including cocaine. Throughout the course of his involvement, it was reasonably foreseeable to Simon, and within the scope of the conspiracy that he or other members of the conspiracy would distribute at least 200 grams of cocaine, during the course of and in furtherance of the conspiracy.
Of the 25 defendants indicted in this case, 22—including Simon and Drummond—have pleaded guilty or been found guilty at trial. On March 4, 2021, Judge Hollander sentenced Tony Solomon, age 55, of Baltimore, to 10 years in federal prison for conspiracy and possession with intent to distribute controlled substances. The remaining defendants have trial dates in November 2021.
This prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Co-located Strike Forces Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations against a continuum of priority targets and their affiliate illicit financial networks. These prosecutor-led co-located Strike Forces capitalize on the synergy created through the long-term relationships that can be forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime. The specific mission of the Baltimore OCDETF Strike Force is to reduce violent, drug-related, and gang crime in the Baltimore area and surrounding region.
Acting United States Attorney Jonathan F. Lenzner commended the DEA and the Baltimore Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys LaRai Everett and James T. Wallner, who are prosecuting the case.
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Dunbar Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – David Wayne Watson, 37, of Dunbar, pleaded guilty today to a federal gun crime. A federal grand jury indicted Watson in August 2020.
According to statements made in court, officers with the Charleston Police Department responded to a call for shots fired near the Go-Mart in North Charleston in November 2019. Watson was outside an apartment building nearby. Officers made contact with him, and Watson agreed to let the officers inside the building to check the welfare of the residents. While walking up the stairs, an officer observed a firearm in Watson’s pocket. Watson admitted that he was prohibited from possessing firearms as a result of his prior felony convictions for aggravated robbery and fleeing from police causing injury.
Watson pleaded guilty to possession of a firearm by a felon and faces up to 10 years in prison when sentenced on October 19, 2021.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Julie M. White is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00141.
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Duluth Man Pleads Guilty to COVID-Relief Fraud SchemeRead the Press Release
MINNEAPOLIS – A Duluth man pleaded guilty today to wire fraud and aggravated identity theft in connection to a COVID-19 relief fraud scheme, announced Acting U.S. Attorney W. Anders Folk.
According to his guilty plea, from April 2020 through August 2020, Jared John Fiege, 34, devised and executed a scheme to fraudulently obtain over $250,000 in COVID-19 relief through Unemployment Insurance (UI) and the Economic Injury Disaster Loan (EIDL) Program. As part of the scheme, Fiege submitted fraudulent applications for UI benefits and EIDL assistance by using stolen names, birth dates, and social security numbers of at least 20 individuals. In applying for EIDL assistance and advances, Fiege also invented fictional business entities, which he linked to the identities of real persons without their knowledge or consent. Fiege possessed multiple cell phones and registered numerous email addresses which he used to impersonate others. Fiege also impersonated others by using fraudulent passports as a means of identity verification. Fiege established false bank accounts and requested bank cards to be issued by mail to other people’s addresses, which he would then steal from their mailboxes along with other mail allowing him to withdraw significant amounts of cash from those accounts.
This case is the result of an investigation conducted by the United States Postal Inspection Service, the Small Business Administration Office of the Inspector General, the Minnesota Bureau of Criminal Apprehension, and the Duluth Police Department.
This case is being prosecuted by Assistant U.S. Attorney Lindsey E. Middlecamp.
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.
Dominican National Sentenced for Distributing FentanylRead the Press Release
BOSTON – A Dominican national previously residing in Dorchester was sentenced today for distributing fentanyl.
Snolbert Ramirez-Sandoval, 24, was sentenced by U.S. District Court Judge Indira Talwani to two years in prison and three years of supervised release. On March 3, 2021, Sandoval pleaded guilty to two counts of distribution of fentanyl and two counts of employment or use of persons under 18 years of age in drug operations.
Sandoval sold fentanyl on July 26, 2018, by directing the buyer to go to an apartment in Roslindale. The sole occupants were two young boys (one between 10-and-14-years-old and the other between 2-and-6-years-old). The older boy led the buyer to the room in which Ramirez-Sandoval had left the fentanyl. The buyer made payment for the substance and left. On Aug. 2, 2018, the buyer returned to the Roslindale apartment to purchase additional fentanyl from Ramirez-Sandoval who told the buyer by phone that he was not yet there, but the kids were upstairs and instructed the buyer to ring the buzzer. The buyer was greeted by the same two children. Approximately 20 minutes later, Ramirez-Sandoval and another individual arrived at the apartment and sold the buyer the fentanyl.
Acting United States Attorney Nathaniel R. Mendell; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement. Assistant U.S. Attorney Craig Estes of Mendell’s Narcotics and Money Laundering Unit prosecuted the case.
Disruptive Flight Passenger Charged in Miami Federal CourtRead the Press Release
Miami, Florida. – A 27-year-old California man who caused a disturbance last week during a passenger flight from Los Angeles to Miami made his first appearance in federal court today on a charge of interfering with flight crew members and attendants.
According to the criminal complaint affidavit, passenger Anthony Kevin Trujillo’s conduct became increasingly disturbing during the flight on July 7. After announcing that he heard a gas leak, Trujillo accused a fellow passenger of storing bomb parts in her socks. Trujillo then accused a flight attendant of carrying improvised explosive device components in his bag and tried to wrestle the bag away from him, says the affidavit. Two air marshals who were on the flight approached Trujillo and the attendant. After ensuring that there were no explosive device components in the flight attendant’s bag, the air marshals attempted to calm the agitated Trujillo. Despite this, Trujillo got up from his seat and charged down the passenger aisle, towards the front of the airplane, it is alleged. The air marshals stopped Trujillo and, after some resistance from him, eventually secured Trujillo in an area away from other passengers. Air marshals and a flight attendant guarded Trujillo for the rest of the flight. For about the last hour of the flight, pursuant to the captain’s instructions, all passengers had to keep their hands raised above their heads. Law enforcement boarded the plane once it landed at Miami International Airport.
Trujillo is scheduled for a pretrial detention hearing on Friday, July 16, at 10:00 a.m., in Miami federal magistrate court. If convicted, he faces up to 20 years in federal prison.
Juan Antonio Gonzalez, Acting United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI Miami, announced the charge.
FBI Miami investigated this case, with assistance from the Transportation Security Administration (Federal Air Marshals) and Miami Dade Police Department. Assistant U.S. Attorney Arielle Klepach is prosecuting the case.
Criminal complaints contain mere allegations and defendants are innocent unless and until found guilty in a court of law.
You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 21-mj-03385.
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Detroit Man Sentenced to 84 Months of ImprisonmentRead the Press Release
HAMMOND-Altonio Dequan Benson, 30, of Detroit, Michigan, was sentenced by U.S. District Court Chief Judge Jon E. DeGuilio to 84 months of imprisonment and ordered to pay $422,552.99 in restitution following his guilty plea to robbery affecting interstate commerce, announced Acting United States Attorney Tina L. Nommay.
According to documents filed in the case, on January 25, 2019, Altonio Dequan Benson, Darren Bell, and an unidentified third individual robbed Jared the Galleria of Jewelry in Hobart, Indiana. With employees and customers watching, Benson and the third individual smashed the jewelry store’s display cases, after which Benson, Bell, and the third individual took over $1,000,000 worth of jewelry and fled. Bell and Benson were arrested while attempting to flee on foot, and approximately $580,000 of the jewelry was recovered. The third unidentified individual fled in a vehicle. Benson has seven prior felony convictions, including convictions for fleeing law enforcement, felon in possession of a firearm, and attempted delivery of a controlled substance, and he was on felony probation at the time he committed the robbery. On December 15, 2020, codefendant Darren Bell was sentenced to 39 months in prison and was ordered to pay $422,552.99 in restitution for his role in the offense.
This case is the result of the investigative efforts of the Federal Bureau of Investigation Gang Response Investigative Team and the Hobart Police Department. This case was prosecuted by Assistant U.S. Attorney Nicholas J. Padilla.
Defendant Sentenced to 10 Years Imprisonment for Driving While Intoxicated on Fort Sam HoustonRead the Press Release
SAN ANTONIO – A federal judge sentenced 52-year-old Tremont Druval Williams to 10 years of imprisonment for driving while intoxicated (DWI) on Joint Base San Antonio – Fort Sam Houston (JBSA – Ft. Sam).
According to court records, on August 2, 2018, Williams attempted to enter JBSA – Ft. Sam through the outbound lanes of the I-35 Access Control Point on George C. Beach Avenue. Williams then reversed his vehicle out of the outbound lanes and made a U-turn. A Senior Airman patrol officer noticed Williams struggling to stay in his lane and saw Williams cross the painted lane divider. When the patrol officer approached Williams, he noticed Williams was slumped forward in his seat, had slurred incoherent speech and did not know where he was. After failing field sobriety tasks, Williams was arrested.
Williams had six prior convictions for DWI in his criminal history. He also has a pending DWI charge in Bexar County. In addition to the DWIs, Williams had two convictions of assault family violence as well as multiple convictions for possession of cocaine.
On February 4, 2020, Defendant pleaded guilty to one count of driving while intoxicated.
The FBI and the Air Force Security Forces investigated this case. AUSA Sarah Wannarka prosecuted this case on behalf of the government.
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Clairton Man Charged with Federal Drug and Gun Law ViolationsRead the Press Release
PITTSBURGH, PA – A resident of Clairton, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating the federal narcotics and firearms laws, Acting United States Attorney Stephen R. Kaufman announced today.
The two-count Indictment named Meiko Shawn DeVaughn, age 27, as the sole defendant.
According to the Indictment, on June 10, 2021, DeVaughn unlawfully possessed a quantity of heroin, intending to redistribute it, and a firearm and ammunition, which he unlawfully possessed after sustaining a prior conviction for a felony offense. Federal law prohibits a convicted felon from possessing a firearm or ammunition.
The law provides for a maximum total sentence of imprisonment of not more than twenty years, a fine of not more than $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Clairton Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Chalmette Woman Pleads Guilty to Theft of Government FundsRead the Press Release
NEW ORLEANS – United States Attorney Duane A. Evans announced that JAMIE MARIE KILLIAN (“KILLIAN”), age 41, of Chalmette, Louisiana, pled guilty today to theft of government funds, in violation of Title 18, United States Code, Section 641.
Beginning in or about August 2013, and continuing until in or about June 2020, in the Eastern District of Louisiana and elsewhere, the defendant, JAMIE MARIE KILLIAN, did knowingly embezzle, steal, purloin, and convert to her use, money belonging to the United States and a department and agency thereof, namely, money of the Social Security Administration, to which she knew she was not entitled, when she utilized approximately $99,940.00 in Social Security Administration funds.
KILLIAN faces a maximum penalty of ten (10) years imprisonment, followed by up to three (3) years of supervised release, a fine of up to $250,000.00, and a mandatory $100.00 special assessment fee. Sentencing in this matter is scheduled for October 27, 2021, before United States District Judge Lance M. Africk.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Social Security Administration, Office of the Inspector General with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit.
Central Ohio man pleads guilty to five armed robberies at Dayton dollar storeRead the Press Release
DAYTON – David Joseph Carter II, 21, of Powell, Ohio, pleaded guilty in U.S. District Court today to robbing a local Dollar General store five times while armed.
According to his plea, Carter robbed the Dollar General store on Salem Avenue in Dayton on Feb. 3, 8, 13, 28 and March 7, 2021. Shortly after he stole $471 from the store on March 7, the Dayton Police Department’s Violent Offenders Unit conducted a search warrant at an apartment where Carter was residing and discovered the clothing and shoes he wore during the most recent robbery.
Carter admitted to brandishing a firearm and stealing cash from the store on each of the five occasions.
The defendant pleaded guilty to interfering with commerce by threats or violence and to brandishing a firearm during a crime of violence.
Carter faces a minimum of seven years and up to a lifetime in prison. Congress sets the maximum statutory sentence. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Roland Herndon, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); and Dayton Police Chief Richard S. Biehl announced the plea entered into today before U.S. District Judge Walter H. Rice. Assistant United States Attorney Ryan A. Saunders is representing the United States in this case.
This case is being prosecuted as 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.
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California Man Convicted for Large-Scale Fentanyl Analogue Pill Mill OperationRead the Press Release
TRENTON, N.J. – A California man was convicted today of conspiracy and manufacturing, distributing, and possessing with intent to manufacture and distribute a fentanyl analogue, Acting U.S. Attorney Rachael A. Honig announced.
Andrew Tablack, 29, of Beverly Hills, California, was convicted of one count of manufacturing, distributing, and possessing with intent to manufacture and distribute pills containing cyclopropyl fentanyl, an analogue of fentanyl intended for human consumption, in violation of the federal drug laws, and one count of conspiracy to do the same. The jury deliberated for less than two hours before returning the guilty verdict following a six-day trial before U.S. District Judge Michael A. Shipp in Trenton federal court.
According to documents filed in this case and the evidence at trial:
From at least March 2017 through December 2017, Tablack ran a massive pill making operation that distributed hundreds of thousands of fentanyl analogue pills throughout the United States, including New Jersey. These pills contained a powerful synthetic opioid with significant abuse potential. Tablack manufactured these illegal pills in clandestine labs in and near Los Angeles and sold them anonymously on the dark web, the Internet’s black market, using the moniker “XanaxKing2.” Tablack shipped approximately 400,000 of his illegal pills per month and made millions of dollars from his illegal operation in digital currency that is commonly used in the black market due to its relative anonymity.
Each count of the indictment is punishable by a maximum of 20 years in prison and a fine of $1 million. Sentencing is scheduled for Dec. 6, 2021.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Acting U.S. Attorney Honig credited special agents with the Drug Enforcement Administration, Newark Division, under the direction of Special Agent in Charge Susan A. Gibson; the U.S. Department of Homeland Security, Homeland Security Investigation (HSI), Newark Division, under the direction of under the direction of Special Agent in Charge Jason J. Molina; inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Rodney M. Hopkins; and special agents of the U.S. Postal Service Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office, with the investigation leading to today’s guilty verdict.
The government is represented by Assistant U.S. Attorneys Tazneen Shahabuddin of the Special Prosecutions Division, José R. Almonte, Deputy Chief of the Criminal Division, and Sarah Devlin, Chief of the Asset Recovery and Money Laundering Unit.
Brockton Man Sentenced for Fentanyl TraffickingRead the Press Release
BOSTON – A Brockton man was sentenced today for his role in distributing fentanyl throughout southeastern Massachusetts.
Eric Marques, 29, was sentenced by U.S. District Court Judge Patti B. Saris to five years in prison and four years of supervised release. On March 25, 2021, Marques pleaded guilty to one count of distribution and possession with intent to distribute 40 grams or more fentanyl.
In 2019 and 2020, law enforcement conducted an investigation into fentanyl traffickers operating in southeastern Massachusetts. A cooperating witness and undercover police officer purchased a total of 180 grams of fentanyl and 260 pressed fentanyl pills from Marques. Marques was arrested on March 16, 2020. A search of residences tied to Marques in Brockton and Bridgewater resulted in the seizure of $10,700 in cash, bags of fentanyl, a digital scale and other drug packaging materials.
Acting United States Attorney Nathaniel R. Mendell; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Brockton Police Chief Emanuel Gomes; East Bridgewater Police Chief Paul O’Brien; John Gibbons, U.S. Marshal for the District of Massachusetts; and Plymouth County District Attorney Timothy Cruz made the announcement today. Assistant U.S. Attorney Christopher Pohl of Mendell’s Narcotics and Money Laundering Unit prosecuted the case.
The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Atlantic County Men Charged in Heroin ConspiracyRead the Press Release
CAMDEN, N.J. – Two Atlantic County men have been charged with conspiring to distribute heroin, Acting U.S. Attorney Rachael A. Honig announced.
Ricardo Clavijo, 39, of Egg Harbor Township, New Jersey, and Christopher Gonzalez, 37, of Pleasantville, New Jersey, were each charged by complaint on July 13, 2021, with conspiring to distribute and possess with intent to distribute over one kilogram of heroin. Both defendants appeared by videoconference before U.S. Magistrate Judge Ann Marie Donio and were detained without bail.
According to documents filed in this case and statements made in court:
On July 12, 2021, the Drug Enforcement Administration (DEA) and officers from other law enforcement agencies executed a search warrant at an Egg Harbor Township residence. They encountered Clavijo at the front door and Gonzalez in the basement. In the basement of the residence, law enforcement officers discovered five kilogram-sized packages of suspected fentanyl, eight kilogram-sized packages of suspected fentanyl or cocaine, two kilogram-sized packages of suspected heroin, tens of thousands of pre-packaged individual doses of suspected heroin, additional narcotics packaging materials and paraphernalia, and an electronic money counter. Agents also found a .45 caliber handgun, a loaded magazine for the handgun, and a 9mm 50-round drum magazine.
The conspiracy count is punishable by a mandatory minimum term of 10 years in prison, a maximum of life in prison and a fine of $10 million, or twice the gross gain or loss caused by the offense, whichever is greatest.
Acting U.S. Attorney Honig credited special agents of the DEA’s Newark Division and the DEA Atlantic County HIDTA Task Force, under the direction of Special Agent in Charge Susan A. Gibson, with the investigation leading to the charges. She also thanked the Atlantic County Prosecutor’s Office, under the direction of Prosecutor Damon G. Tyner, and the Egg Harbor Township Police Department, under the direction of Chief Michael A. Steinman, for their assistance.
The government is represented by Assistant U.S. Attorney Andrew B. Johns of the Criminal Division in Camden.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Armed Career Criminal Sentenced to 15 Years in Federal Prison for Possession of A Firearm/AmmunitionRead the Press Release
Ocala, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced Johnny Lee Smith (43, Pensacola) to 15 years in federal prison for possessing a firearm and ammunition as a convicted felon. He had pleaded guilty on March 26, 2021.
According to the facts presented in court, on August 29, 2020, deputies from the Lake County Sheriff’s Office conducted a traffic stop on Smith’s car. During the stop, the deputies saw a loaded .22 caliber revolver on the front passenger seat next to Smith. A records check showed that Smith had 15 prior state felony convictions, including numerous convictions for selling cocaine. Because of these felony convictions, Smith is prohibited from possessing firearms or ammunition under federal law. Following his arrest, the deputies also recovered an additional .22 caliber bullet from Smith’s pocket.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lake County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys William S. Hamilton and Charles Helm.
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.
Aquilino Torres Convicted of Kidnapping and StalkingRead the Press Release
Audrey Strauss, United States Attorney for the Southern District of New York, announced today that AQUILINO TORRES was convicted of kidnapping, kidnapping of a minor, and stalking for the October 2020 kidnapping and stalking of an adult female victim (“Victim-1”) and the kidnapping of Victim-1’s 7-year-old son (“Minor Victim-1”). TORRES was convicted following a one-week jury trial before U.S. District Judge Denise L. Cote.
Manhattan U.S. Attorney Audrey Strauss said: “Aquilino Torres threatened to kill a 7-year-old child in carrying out a brutal kidnapping of the child and his mother. Torres then held his victims captive and physically abused both mother and child. Thanks to the FBI and NYPD, Torres was apprehended, prosecuted, and now stands convicted of these horrific crimes.”
As reflected in the Indictment, documents previously filed in the case, and evidence introduced at trial:
On or about October 5, 2020, TORRES texted and called Victim-1 hundreds of times, including a text threatening to “kick [Minor Victim-1’s] teeth out.” Later that night, TORRES took Victim-1 and Minor Victim-1 to a motel in the Bronx, where he hit Minor Victim-1 in the face and assaulted Victim-1, breaking her jaw. While TORRES assaulted Victim-1, he told Victim-1, in sum and substance, that he would hang Victim-1 and that Minor Victim-1 would be found dead in the river. For the next five days, TORRES held Victim-1 and Minor Victim-1 against their will at an apartment in Washington Heights, without medical treatment for Victim-1’s broken jaw. On or about October 10, 2020, Victim-1 and Minor Victim-1 escaped from the apartment and were admitted to a hospital shortly thereafter. In response to their escape, between on or about October 10, 2020, and on or about October 13, 2020, TORRES once again sent Victim-1 hundreds of threatening text messages and called Victim-1 hundreds of times. For example, TORRES texted Victim-1, in sum and substance, that, if he made the decision to go looking for her, “there won’t be turning back.” TORRES followed through on those threats and attempted to track down Victim-1 and Minor Victim-1 after they escaped.
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TORRES, 27, was found guilty of (i) one count of kidnapping, in violation of 18 U.S.C. §§ 1201(a)(1) and (b), which carries a maximum sentence of life in prison, (ii) one count of kidnapping of a minor, in violation of 18 U.S.C. §§ 1201(a)(1), (b), and (g), which carries a maximum sentence of life and a mandatory minimum sentence of 20 years, and (iii) one count of stalking, in violation of 18 U.S.C. §§ 2261A(2)(A) and (B), 2261(b)(3), and 2265A, which carries a maximum sentence of 20 years.
Ms. Strauss praised the outstanding investigative work of the FBI-NYPD Violent Crimes Task Force.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys David J. Robles, Sarah L. Kushner, and Andrew S. Dember, and paralegal specialist Ariella Fetman, are in charge of the prosecution.
Acting U.S. Attorney G. Norman Acker, III, Announces Latest Results of Operation False Haven: Convicted Narcotics Trafficker Arrested for Naturalization FraudRead the Press Release
RALEIGH, N.C. – A Moore County man arrested on charges of naturalization fraud had an initial appearance today before United States Magistrate Judge L. Patrick Auld in Greensboro, North Carolina.
A federal grand jury had returned an indictment charging Jose De Jesus Munoz, age 34, a naturalized citizen of the U.S., born in Mexico, residing in Jackson Springs, North Carolina, with naturalization fraud.
According to the indictment, Munoz knowingly failed to disclose during his naturalization proceedings in 2012 that he had committed the crime of conspiracy to distribute and possess with intent to distribute at least 5 kilograms of cocaine from in or about 2011 to December 18, 2014, in the Western District of North Carolina. Munoz was naturalized as a United States citizen in Wilmington, North Carolina, on September 17, 2012.
On May 20, 2016, in the U.S. District Court for the Western District of North Carolina, Munoz was sentenced to 70 months of imprisonment for conspiracy to distribute cocaine and ordered to forfeit his interest in 14 bank accounts, multiple residential properties, as well as 10 pistols, five rifles, and three shotguns as instruments and proceeds of the conspiracy.
Munoz is charged in a four-count indictment with naturalization fraud. If convicted, he faces up to a maximum imprisonment term of 25 years per count, a $250,000 fine per count, and a term of supervised release following any term of imprisonment. A conviction for naturalization fraud also carries an automatic revocation of U.S. citizenship.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement. Agents with ICE’s Enforcement and Removal Operations and Homeland Security Investigations, assigned to the Document Benefit Fraud Task Force, investigated the case as part of Operation False Haven, an ongoing initiative designed to identify and prosecute egregious felons who fraudulently obtained U.S. citizenship.
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 Nos. 7:21-CR-35-FL (E.D.N.C.) and 3:15-CR-20-RJC (M.D.N.C.).
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
12+ Years Prison Sentence for Middle Georgia Man Guilty in International Child Exploitation CaseRead the Press Release
COLUMBUS, Ga. – A Fortson, Georgia man was sentenced to serve 151 months in federal prison for coercion and enticement of a minor as a result of an international child exploitation investigation.
Brandon Bywater, 27, of Fortson, Georgia, was sentenced to serve 151 months in federal prison to be followed by ten years of supervised release by U.S. District Judge Clay D. Land after previously pleading guilty to coercion and enticement of a minor. In addition, Bywater will be required to register as a sex offender under the Sex Offender Registration Act. There is no parole in the federal system.
“Kids need to know that hidden predators lurk on social media. In this case, the child victim did not know she was interacting with an adult male who collected child pornography of prepubescent children,” said Acting U.S. Attorney Peter D. Leary. “Our office will not hesitate to pursue federal charges against child predators. The success of this case demonstrates the excellent interagency work between those investigators here at home and abroad who are committed to protecting children.”
“It’s unfortunate that there are predators like Bywater lurking in the shadows online waiting for their next victim. We all have to make sure we are monitoring our children’s online activities to protect them from danger,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Fortunately, he will not be able to post or share these disturbing images and is being held accountable for his crimes against innocent children.”
According to court documents, on June 26, 2018, a Kik social media app user “drawingkid500” uploaded child pornography. This was detected by Kik and forwarded to the Royal Canadian Mounted Police (RCMP) Centre for Missing and Exploited Children. The case was referred to Homeland Security Investigations (HSI) after the RCMP geo-located the IP address of the Kik user to the United States. HSI’s investigation led to a search warrant of Bywater’s residence. Bywater admitted to being Kik user “drawingkid500” and that he sent, received and downloaded images of child pornography, including images of toddlers and infants. Agents discovered 27 images of child exploitation on Bywater’s phone, with 14 involving child pornography of prepubescent children. During a forensic examination of a device seized from the defendant, it was discovered that Bywater had texted with a 13-year-old 7th grader more than 400 times. In these texts, Bywater initially pretended to be a high school sophomore named “Jack” and enticed the victim to send nude photos of herself. In addition to receiving nude photos of the victim, Bywater sent nude photos of himself to the girl.
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 the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by Homeland Security Investigations (HSI) and the Harris County Sheriff’s Office.
Assistant U.S. Attorney Crawford Seals prosecuted the case for the Government.
Tuesday 13 July 2021
Weare Man Sentenced to 36 Months for Possession of Child PornographyRead the Press Release
CONCORD - Stacey Colburn, 45, of Weare, was sentenced on Monday to 36 months in federal prison for possession of child pornography, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, during an ongoing investigation, investigators identified a specific yahoo.com email address associated with the receipt of child pornography. The I.P. address for the user of the email address was subscribed to by Colburn at his residence in Weare. On January 25, 2019, Colburn met with investigators at the Weare Police Department. He admitted the email address was his and that he was the only individual who accessed the account.
After obtaining a search warrant for Colburn’s home and cellphone, investigators seized his laptop and external hard drive, which contained thousands of images and videos of child pornography.
Colburn previously pleaded guilty on February 24, 2021. In addition to his prison sentence, Colburn was ordered to pay $21,000 in restitution.
“Those who possess child pornography are perpetuating the sexual exploitation of the minors depicted in the images,” said Acting U.S. Attorney Farley. “In order to protect innocent children from exploitation, we work closely with our federal, state, and local partners to identify and prosecute the criminals who produce, distribute or possess child pornography.”
“With today’s sentence, Stacey Colburn has been held accountable for possessing thousands of images, and more than a hundred videos, that have robbed innocent children of their childhood,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Sadly, this case is one of many that illustrates the FBI’s commitment to working with our law enforcement partners to identify other predators like him and prevent them from victimizing more children.”
This matter was investigated by the Federal Bureau of Investigation with assistance from the Weare Police Department. The case was prosecuted by Assistant U.S. Attorney Anna Krasinski.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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United States Postal Worker Arrested for Stealing Postal Money OrdersRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging United States Postal Service (USPS) worker Jaleesa Wallace with stealing blank postal money orders and unemployment benefits cards. Wallace was arrested this morning and her initial appearance is scheduled for this afternoon before United States Magistrate Judge James R. Cho. On July 9, 2021, Willie Cook, an alleged co-conspirator, was arrested for stealing USPS money orders in connection with the scheme. Cook was released on a $25,000 bond.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, Matthew Modafferi, Special Agent-in-Charge, USPS, Office of the Inspector General (USPS-OIG), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the charges.
“As alleged, the defendant, a trusted public servant, pilfered thousands of postal money orders from the Postal Service and had in her possession Department of Labor unemployment benefit cards, giving her and her co-conspirator access to more than $3 million in cash,” stated Acting United States Attorney Kasulis. “This Office will vigorously prosecute government employees who exploit their positions for personal gain and abuse the public trust.” Ms. Kasulis expressed her gratitude to the investigators of the U.S. Postal Inspection Service, the USPS-OIG and NYPD for their outstanding work on the case.
“The Special Agents of the U.S. Postal Service Office of Inspector General help to maintain the integrity of the Postal Service and its personnel. When a Postal Service employee breaks the trust of the American public and participates in schemes to defraud the government, our Agents will work tirelessly to help bring those responsible to justice. We’d like to thank the U.S. Postal Inspection Service, New York Police Department, and the U.S. Attorney’s office for our strong relationships and their dedication to supporting our mission,” stated USPS-OIG Special Agent-in-Charge Modafferi.
As set forth in court filings, in February 2021, 10,000 blank postal money orders were reported missing from the Utica Avenue Post Office in Brooklyn. The postal money orders can be deposited with a financial institution for up to $1,000 each. On July 9, 2021, agents executed search warrants and recovered over 3,000 of the stolen postal money orders from Wallace’s residence and approximately 300 from Cook’s residence. At least $1.4 million worth of the stolen postal money orders had been cashed. Agents also recovered prepaid Department of Labor unemployment benefit cards and over $42,000 in cash from both apartments. Additionally, Wallace was in possession of approximately 42 pieces of mail from the Department of Labor that were not in her name. Cook posted photos of stolen postal money orders on the social media app Telegram with the caption “let’s eat,” referring to getting paid for the postal money orders. Cook is not a USPS employee.
The charges in the complaints are allegations, and the defendants are presumed innocent unless and until proven guilty. The investigation is ongoing.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Samantha Alessi is in charge of the prosecution with assistance from Assistant United States Attorneys Garen Marshall and Dylan Stern.
The Defendants:
JALEESA WALLACE
Age: 30
Brooklyn, New YorkE.D.N.Y. Docket No. 21-MJ-808
WILLIE COOK
Age: 34
Brooklyn, New YorkE.D.N.Y. Docket No. 21-MJ-802
U.S. Attorney Files and Simultaneously Settles Lawsuit Against Jujamcyn Theaters LLC to Improve Accessibility at Five of Broadway’s Most Historic TheatersRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced today the filing and settlement of a lawsuit in Manhattan federal court against JUJAMCYN THEATERS LLC, the owners and operators of five of Broadway’s most historic theaters, the AL HIRSCHFELD, the AUGUST WILSON, the EUGENE O’NEILL, the ST. JAMES, and the WALTER KERR, involving violations of the Americans With Disabilities Act (the “ADA”). The settlement, in the form of a consent decree, was entered yesterday by U.S. District Judge Analisa Torres.
U.S. Attorney Strauss said: “As New York City begins to reopen and welcome the world once again, we are pleased that Jujamcyn Theaters has worked collaboratively with the Office to improve accessibility at its historic venues, so that all patrons are able to enjoy Broadway. As a result of this suit and settlement, coupled with similar lawsuits filed by the Office against the Shubert Theaters in 2003, and the Nederlander Theaters in 2014, all three of the major Broadway theater organizations have committed to making their venues significantly more accessible to people with disabilities.”
According to the Complaint and Consent Decree filed in Manhattan federal court:
In the course of an investigation and negotiation over several years, the U.S. Attorney’s Office identified numerous ADA violations at each of the five theaters operated by JUJAMCYN THEATERS LLC, all of which were opened in the 1920s. The ADA generally requires that, for facilities constructed prior to the effective date of the ADA in 1993, barriers to accessibility be removed where it is readily achievable to do so. Throughout the Government’s investigation and the negotiation of the Consent Decree, JUJAMCYN THEATERS LLC agreed to remove hundreds of barriers to accessibility.
Under the Consent Decree, JUJAMCYN THEATERS LLC agrees to continue its efforts to improve accessibility at its theaters, as the schedules of shows at the theaters permit. Specifically, JUJAMCYN THEATERS LLC has agreed to do the following:
- provide a total of 44 wheelchair accessible seating locations, and direct its ticket vendors to accord priority to persons with disabilities in selling those seating locations;
- provide a total of 54 aisle transfer seating locations for persons who are able to transfer from a wheelchair into a seat, and direct its ticket vendors to accord priority to persons with disabilities in selling those seating locations; and
- eliminate approximately 200 individual barriers to accessibility in theater restrooms, concession counters, waiting areas, and box offices.
In addition, JUJAMCYN THEATERS LLC will pay a $40,000 civil penalty to the United States.
Since President George H.W. Bush signed the ADA into law, the U.S. Attorney’s Office for the Southern District of New York has played a significant role in bringing numerous New York City institutions into compliance with the ADA and its regulations. The Office’s enforcement efforts include, among many others, Yankee Stadium, Madison Square Garden, Radio City Music Hall, the Shubert Theaters, the Nederlander Theaters, Avery Fisher Hall at Lincoln Center, the Metropolitan Opera, the Apollo Theater, the Puck Building, the Rainbow Room, and The Vessel at Hudson Yards.
To file a complaint alleging that any place of public accommodation within the Southern District of New York is not accessible to persons with disabilities, use the Civil Rights Complaint Form available on the United States Attorney’s Office’s website, www.usdoj.gov/usao/nys. Complaints should be sent to:
U.S. Attorney’s Office, Southern District of New York
86 Chambers Street, 3rd Floor
New York, New York, 10007
Attention: Chief, Civil Rights Unit
The case is being handled by the Office’s Civil Rights Unit. Assistant U.S. Attorney David J. Kennedy is charge of the case.
- provide a total of 44 wheelchair accessible seating locations, and direct its ticket vendors to accord priority to persons with disabilities in selling those seating locations;
U.S. Air Force Servicemember Sentenced for Distributing Drugs and Trafficking FirearmsRead the Press Release
LAS VEGAS, Nev. – A Master Sergeant in the U.S. Air Force assigned to Nellis Air Force Base was sentenced today to 32 months in prison for selling a large quantity of methamphetamine and for trafficking firearms (including an AK-47 rifle) without a Federal Firearms License.
In April 2021, Michael Reimers, 41, of Las Vegas, had pleaded guilty to one count of distribution of a controlled substance and one count of engaging in the business of dealing in firearms without a license. In addition to the prison term, U.S. District Judge Kent J. Dawson sentenced Reimers to three years of supervised release.
According to court documents, from about July 11, 2019 to about September 4, 2019, Reimers — who is not a licensed firearms dealer — sold an AK-47, a .26 caliber handgun, and a 12 gauge shotgun to various buyers. In addition, he sold large quantities of methamphetamine and cocaine to the same buyers.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Assistant Special Agent in Charge Daniel Neill for the Drug Enforcement Administration (DEA) made the announcement.
This case was investigated by the DEA, along with the Las Vegas Metropolitan Police Department and Henderson Police Department. Assistant U.S. Attorney Shaheen Torgoley prosecuted the case.
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Two Remaining Defendants of $1.3 Billion Investment Fraud (Ponzi) Scheme – One of the Largest Ever Charged in South Florida – Plead Guilty to Mail and Wire Fraud ConspiracyRead the Press Release
Miami, Florida – On July 12, 2021, Los Angeles County, California natives, Dane Roseman, 38, and Ivan Acevedo, 44, pled guilty to participating in a massive investment fraud scheme, in which more than 7,000 victims suffered financial losses, in violation of 18 U.S.C. § 371. Co-defendant Robert Shapiro, the former owner, president, and CEO of Woodbridge Group of Companies LLC (“Woodbridge”) was previously sentenced to the maximum sentence of 25 years in prison for his leadership role in the fraud scheme and his separate income tax fraud.
According to the indictment, superseding information, and court documents, Shapiro spearheaded and concealed an enormous Ponzi scheme through his business, Woodbridge. Woodbridge employed approximately 130 people and had offices located throughout the United States, including in Boca Raton, Florida; Sherman Oaks, California; Colorado; Tennessee; and Connecticut. The scheme ran from at least July 2012 to December 2017, when Woodbridge filed for Chapter 11 bankruptcy and defaulted on its obligations to investors.
Throughout the conspiracy, Woodbridge’s main business model was to solicit money from investors and, in exchange, issue investors promissory notes reflecting purported loans to Woodbridge that paid high monthly interest rates. Woodbridge falsely claimed that these investments were tied to real property owned by third parties and that the third parties would be making the interest payments to Woodbridge and its investors; it was portrayed as an investment in a hard-money lending business.
Roseman started working for Woodbridge as a sales agent in or around August 2012. Between 2015 and 2017 he served as the sales manager of Woodbridge. Acevedo started working for Woodbridge as a sales agent in or around 2009, and in 2013 to December 2014 he served as the sales manager of Woodbridge. As sales managers, these defendants sold Woodbridge securities and trained and supervised Woodbridge internal sales agents who sold Woodbridge securities. Using high-pressure sales tactics, Shapiro, Roseman, Acevedo, and others marketed and promoted these investments as low-risk, safe, simple, and conservative. And at minimum, investors were made to believe that Woodbridge’s real estate dealings would generate the funds used to pay the return on their investments.
The Woodbridge sales operation controlled by Shapiro, managed by Acevedo then Roseman, functioned as a “phone room” and featured high-pressure sales tactics, deception, and manipulation. Woodbridge promoted investments through telephone and in-person conversations, e-mails and website displays. The scheme also involved misrepresentations to financial planners who helped Woodbridge to sell investments to potential investors.
Despite Woodbridge’s claims that these investments would be backed by properties owned by third parties, in fact, to the extent that the properties existed, they were secretly owned by Shapiro. Unbeknownst to investors, Shapiro created and controlled a network of more than 270 limited liability companies, which he used to acquire and sell the properties pitched to investors.
Shapiro, Roseman, and Acevedo falsely claimed that Woodbridge was profitable and advertised high rates of return to investors. However, Shapiro’s real estate portfolio failed to generate sufficient cash flow to satisfy the loan obligations and interest payments owed to investors. To make up for the cash deficiency, Shapiro resorted to making Ponzi payments, i.e., hundreds of millions of dollars invested by new investors were used to pay “returns” to older, existing Woodbridge investors. In some instances, Shapiro made these fraudulent “interest” payments even when the advertised investment properties were never acquired.
As its sole owner and chief operator, Shapiro compartmentalized Woodbridge operations to restrict access to information concerning Woodbridge’s finances. Neither Roseman nor Acevedo had access to or knowledge of Woodbridge’s finances and were unaware that Shapiro was using new investor money to pay prior investors. Thus, neither Roseman nor Acevedo had direct knowledge that Shapiro was operating a Ponzi scheme by using new Woodbridge investor money to pay prior investors.
In total, Shapiro and his co-conspirators convinced more than approximately 9,000 investors to invest more than $1.29 billion to Woodbridge. According to the Superseding Information and Superseding Indictment, at least 2,600 of these investor victims invested their retirement savings, totaling approximately $400 million. Of that, Shapiro misappropriated approximately $25 million to $95 million in investor money for himself and for the benefit of his immediate family members. Roseman received approximately $2.5 million in Woodbridge money and Acevedo received approximately $1.1 million. The U.S. Securities and Exchange Commission (SEC) filed parallel civil enforcement actions against Woodbridge, Shapiro, his wife, and Acevedo and Roseman related to the fraud.
Roseman is scheduled to be sentenced on September 20, at 1:00 p.m. and Acevedo is scheduled to be sentenced on September 20, at 1:30 p.m., by U.S. District Judge Cecilia M. Altonaga, who sits in Miami.
Juan Antonio Gonzalez, Acting U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Tyler R. Hatcher, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and the Florida Office of Financial Regulation (OFR), made the announcement.
Acting U.S. Attorney Gonzalez commended the investigative efforts of the FBI, IRS-CI and OFR in this matter. He thanked the SEC Miami Regional Office and the U.S. Attorney’s Office for the Central District of California for their assistance. This case is being prosecuted by Assistant U.S. Attorney Roger Cruz. Assistant U.S. Attorney Sara Klco is handling the asset forfeiture component of the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 19-cr-20178.
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Tulsa Man Pleads Guilty to Felony Child NeglectRead the Press Release
A Tulsa man pleaded guilty to two counts of child neglect in Indian Country after he left his two children unsupervised for more than four hours, at which time the children gained access to his parked vehicle and died due to extreme heat exposure, announced Acting U.S. Attorney Clint Johnson.
Dustin Lee Dennis, 32, fell asleep on June 13, 2020, only to wake up and discover his two children deceased in the backseat of his pick-up truck. As part of the plea agreement, Dennis and the United States agreed to a sentence between 36 and 72 months in federal prison followed by five years of supervised release. U.S. District Judge Claire V. Eagan will determine the final sentence at a hearing set for Nov. 10, 2021.
“Dustin Dennis was irresponsible and reckless. He prioritized using cocaine while his young children, Ryan and Tegan, were in his home and failed to protect them from harm,” said Acting U.S. Attorney Clint Johnson. “My office remains committed to prosecuting perpetrators of child neglect and abuse.”
In his plea agreement, Dennis admitted that while caring for his children on June 12-13, 2020, he got high on cocaine and stayed up playing video games. He fell asleep on June 13, leaving his two children unsupervised. The children entered Dennis’s vehicle in the driveway, were unable to get out of the truck and later died from exposure to extremely high temperatures while being trapped in the truck.
In court, Assistant U.S. Attorney Gina Gilmore outlined the evidence against the defendant. Dennis and his brother discussed purchasing and using cocaine days before the death of the children. On June 12, 2020, his brother indicated that he had the “stuff,” referencing cocaine, and the two could play video games at his home. Dustin later texted his brother that he would have to bring his children since his mother could not take care of them. Dennis then wrote that he was headed to his brother’s house.
Surveillance video showed Dennis and the children returning home just before 1 am on June 13. At 1:03 am, Dennis indicated in a text to his brother that he was turning his game on and later texted that he did a couple of lines and that he hated chopping up cocaine when it’s moist. He indicated he was about to do some more.
Surveillance video later showed Dennis leaving his residence alone at approximately noon for 11 minutes during which time Dennis stated he drove to a QuikTrip. When Dennis returned home from the convenience store, he fell asleep. Surveillance footage showed the two children trying to get into Dennis’ truck at 1:22 p.m. when the vehicle’s alarm went off. They attempted a second time at 1:29 p.m. and successfully gained access to the truck. The video later captured Dennis exiting his apartment and searching for his children approximately four hours later, at 5:32 p.m. Within minutes he discovered the children deceased in the truck.
Three-year-old Ryan and four-year-old Tegan were citizens of the Cherokee Nation. The crime occurred within the boundaries of the Muscogee Nation reservation.
Dustin Dennis and his brother, Michael Dennis, were charged in a superseding indictment, with use of a communication facility in committing, causing, and facilitating the commission of a drug trafficking felony. Michael Dennis is presumed innocent until proven guilty in a court of law.
The FBI and Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Gina Gilmore prosecuted the case.
Trio Arrested in Large-Scale Drug ConspiracyRead the Press Release
Ocala, Florida – Acting United States Attorney Karin Hoppmann announces the unsealing of an indictment charging Devonne L. Walker (35, Lady Lake, FL), Tymane D. Hamilton (29, Phoenix, AZ), and Kanisha D. Savage (28, Phoenix, AZ) with conspiracy to distribute controlled substances. If convicted, each faces a maximum penalty of life in federal prison.
According to the indictment, between March 2018 and October 10, 2019, Walker, Hamilton, and Savage conspired to distribute more than 50 kilograms of marijuana, 5 kilograms of cocaine, 1 kilogram of heroin, 500 grams of methamphetamine, and 40 grams of fentanyl. According to court records, law enforcement officers seized more than 54 kilograms of marijuana, 27 kilograms of methamphetamine, 125 grams of heroin, and 79 grams of fentanyl during the investigation. These drugs were shipped from Phoenix, Arizona to the Middle District of Florida using the United States Postal Service. The drugs were eventually distributed in Central Florida.
Walker was arrested on June 25, 2021, in Lake County, where agents recovered a stolen firearm and bags containing suspected cocaine, heroin, methamphetamine, and fentanyl. Hamilton and Savage were arrested on June 28, 2021, in Phoenix. All three defendants were ordered detained.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Drug Enforcement Administration, the Lake County Sheriff’s Office, the U.S. Postal Service Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Homeland Security Investigations. It will be prosecuted by Assistant United States Attorney Michael P. Felicetta.
Three Dothan Residents Sentenced for Stealing FirearmsRead the Press Release
Montgomery, Ala. – Today, Acting United States Attorney Sandra J. Stewart announced that three Dothan, Alabama residents have been sentenced for their roles in stealing guns from licensed firearms dealers. On July 8, 2021, 19-year-old Michael T. Taylor was sentenced to 26 months in prison. Previously, on June 9, 2021, 20-year old Jamir Y. Baxter was sentenced to 36 months and, lastly, on May 12, 2021, 21-year old Michaela R. White, was sentenced to 36 months imprisonment. Following each of their prison sentences, they will serve three years of supervised release. There is no parole in the federal system.
According to court records, on August 6, 2019, Baxter, acting alone, burglarized Performance Machine Works in Dothan, Alabama and stole five firearms, including a Glock, model 27, .40 caliber pistol; a Glock, model 20, 10mm pistol; a Glock, model 48, 9mm pistol; an FN, model 509T, 9mmm pistol; and, a Remington, model 1911 R1, .45 caliber pistol. Then, on September 6, 2019, Baxter, Taylor, and White all conspired to burglarize The Outpost, a Federal Firearms Licensee (FFL) in Dothan, Alabama, in order to steal guns. They made entry into the building by using hand tools to remove material and breach the business’ back wall to avoid setting off the alarm. A total of nine firearms were taken from The Outpost, including a BCM, model BCM4, 5.56 mm rifle; a Caracal, model F, 9mm pistol; an I.O. Inc., model BSR-74, 5.45mm rifle; a Kel-Tec, model P11, 9mm pistol; a Romarm/Cugir, model WASR-10, 7.62mm rifle; a Romarm/Cugir, model WASR-10UF, 7.62mm rifle; a Taurus, model 24/7 G2, 9mm pistol; and, two (2) Taurus, model G2C, 9mm pistols.
The three defendants were indicted for unlawfully taking firearms from a Federal Firearms Licensee (FFL) and conspiracy to steal from an FFL in connection with the September 6, 2019 burglary. Baxter was indicted on an additional charge of stealing from an FFL for the August 6, 2019 gun thefts. All three pleaded guilty to the charges contained in the indictment.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Dothan Police Department, and the Houston County Sheriff’s Office. Assistant United States Attorney Eric M. Counts prosecuted the case.
Syracuse Man Pleads Guilty to Possessing Unregistered SilencersRead the Press Release
SYRACUSE, NEW YORK - Anthony Lopes, age 29, of Syracuse, New York, pled guilty today to possessing unregistered silencers, announced Acting United States Attorney Antoinette T. Bacon, John B. DeVito, Special Agent in Charge of the New York Field Division of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Chief Kenton Buckner, City of Syracuse Police Department.
As part of his guilty plea, Lopes admitted to selling a total of three silencers on February 10, 2020, and February 13, 2020. None of the silencers had serial numbers and were not registered to Lopes in the National Firearms Registration and Transfer Record.
Sentencing is scheduled for November 10, 2021, before Chief District Judge Glenn T. Suddaby in Syracuse, New York, at which time Lopes faces up to 10 years in prison, a fine of up to $10,000, and a term of supervised release of up to 3 years. 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.
This case was investigated by United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Syracuse Police Department-Special Investigations Division (SPD-SID), and is being prosecuted by Assistant U.S. Attorney Thomas Sutcliffe.
Suitland Man Pleads Guilty to Coercion and Enticement of a MinorRead the Press Release
Greenbelt, Maryland – Sean Levan Henson, age 28, of Suitland, Maryland pleaded guilty today to coercion and enticement of a minor.
The plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Acting Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Chief Russell E. Hamill III of the Laurel Police Department; and Chief Eric L. Reiley of the Woodstock Virginia Police Department.
According to his guilty plea, in February 2019, Henson used various social media platforms to communicate with a 14-year old female victim residing in Shenandoah County, Virginia. Henson sent numerous sexual messages to the underaged victim using the screenname “stayreel2you”. For example, on February 15, 2019 Henson sent a message stating “I’m gonna take my time and appreciate you and make love to that body.”
As detailed in his plea agreement, on February 22, 2019, Henson traveled to Shenandoah County, Virginia where he picked up the victim for the purpose of transporting her to Maryland and engaging in sexual activity. On February 23, 2019, Henson engaged in sexual intercourse with the victim in Laurel, Maryland. Henson subsequently paid for a ride-sharing service to transport the female victim back to Shenandoah County, Virginia. The victim’s parents reported the victim as a missing person and gave a statement to law enforcement implicating Henson in her disappearance.
On March 6, 2019, law enforcement communicated with Henson by telephone. At that time Henson admitted he was aware the victim was 14 years-old and that he had been communicating with the victim for two months with the intention of a romantic relationship. Henson also informed law enforcement he picked up the victim at a Virginia gas station before he proceeded to Maryland where he engaged in sexual intercourse with the victim in Maryland.
Henson and the government have agreed that, if the Court accepts the plea agreement, Henson will be sentenced to 10 years in federal prison. U.S. District Judge George J. Hazel has scheduled sentencing for October 19, 2021 at 2 p.m.
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 Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
Acting United States Attorney Jonathan F. Lenzner commended the FBI, the Laurel Police Department, and the Woodstock Virginia Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Timothy F. Hagan who is prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Statement of Acting U.S. Attorney on the Shooting of Two Baltimore Police Officers Assigned to the U.S. Marshal Service Warrant Apprehension Task ForceRead the Press Release
Baltimore, Maryland – Statement from Acting United States Attorney for the District of Maryland Jonathan F. Lenzner:
“On behalf of the United States Attorney's Office, I would like to recognize the bravery and selfless commitment to public service of the Baltimore police officers assigned to the U.S. Marshal Service Capital Area Regional Fugitive Task Force who were shot and injured today in the line of duty. Today is a painful reminder of the dangers that law enforcement face every day in performing their duties to keep our communities safe. As reflected in their actions today, these two officers and their colleagues are dedicated to making communities in Baltimore safer, and they deserve our gratitude and appreciation.”
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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St. Paul Armed Career Criminal Sentenced to 210 Months in Prison for Illegal Possession of A FirearmRead the Press Release
ST. PAUL, Minn. – A Saint Paul man was sentenced yesterday to 210 months in prison followed by three years of supervised release for illegally possessing a firearm.
According to court documents, on January 16, 2019, Saint Paul police officers responded to a shooting incident near Charles Avenue in St. Paul. Four gunshots were fired at a house, which was occupied by two adults and a two-year old child, penetrating the walls and windows. Officers were able to recover the four 9mm shell casings from the scene. The following day, law enforcement located a Buick Lucerne, registered to Curtis AJ Harrell, 30, that was at the scene of the shooting. Following a search of the vehicle and Harrell’s apartment, law enforcement recovered a loaded Glock 26 9mm firearm with a 17-round extended magazine in the center console of the vehicle and a 50-round 9mm extended drum magazine and live 9mm ammunition inside the apartment.
Investigators test fired the recovered Glock firearm and entered the resulting cartridge casing into the National Integrated Ballistic Information Network (NIBIN), which linked the firearm to the discharged casings recovered from the scene of the shooting. NIBIN also linked the firearm to discharged casings from three other incidents, including two occurring within the previous month. In his plea agreement, Harrell admitted to possessing the firearm that was used to shoot at the house.
Because he has multiple prior felony convictions, Harrell is prohibited under federal law from possessing firearms or ammunition at any time.
“This individual has a long history of carrying guns and committing violent felonies,” said Acting U.S. Attorney W. Anders Folk. “Thanks to the hard work of investigators and the use of NIBIN technology, this armed career criminal is off the streets.”
This case was made possible by investigative leads generated from the ATF’s National Integrated Ballistic Information Network. NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
Acting U.S. Attorney W. Anders Folk for the District of Minnesota made the announcement after U.S. District Judge Patrick J. Schiltz sentenced the defendant.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Saint Paul Police Department.
Assistant U.S. Attorney Nathan H. Nelson prosecuted the case.
St. Louis man pleads guilty to carjacking and gun chargesRead the Press Release
ST. LOUIS – Najee Neal, 30, of St. Louis, Missouri, appeared before United States District Court Judge Sarah E. Pitlyk on today’s date and pleaded guilty to carjacking, brandishing a firearm in furtherance of that carjacking, and felon in possession of a firearm. Neal also pleaded guilty to a separate offense of being a felon in possession of a firearm in connection with an unrelated incident.
On February 27, 2020, just after the victim parked his car in the driveway of a residence in Kirkwood, he noticed a vehicle (occupied by Neal and an accomplice) pull behind his car. Neal exited his vehicle and approached the victim. Neal pointed a pistol at the victim and ordered the victim out of his car and to empty his pockets. Neal took the victim’s wallet and key fob by force and ordered the victim to the ground. Neal entered the victim’s car. A witness approached the scene. The victim warned the witness that the robber had a gun. As Neal drove off, he threatened the witness. Neal’s accomplice followed Neal out of the area.
Minutes later, police spotted Neal in the victim’s car. Neal eluded police at speeds of over 100 miles per hour on Interstate 44. Approximately 45 minutes later, police spotted Neal and activated their emergency lights. Neal attempted to elude officers by running traffic signals and running up on sidewalks. Neal abandoned the carjacked vehicle after it became disabled. Officers pursued Neal on foot. Neal dumped his pistol near the porch area of a nearby home. Neal was arrested a short distance away after ignoring orders to stop. The pistol was recovered. The carjacking victim identified the pistol as the pistol Neal used to steal the victim’s car.
Several months earlier, on September 28, 2019, police, after receiving reports of illegal drug sales in the area of the M & K Market, near the 12000 block of Bellefontaine Road in St. Louis County, spotted Neal engaged in suspicious activity from his parked vehicle. An investigation by the police resulted in the seizure a loaded pistol between the driver’s seat and center console. Police also seized marijuana and a scale from the driver’s door of the vehicle.
Prior to September 28, 2019, Neal was convicted of one or more felony crimes. Neal was prohibited from possessing firearms as a result of his criminal record.
Neal will be sentenced for the above offenses on October 5, 2021.
The above cases were investigated by the Kirkwood Police Department, St. Louis Metropolitan Police Department, St. Louis County Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Jennifer Szczucinski is handling the matter.
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Repeat Offender from Mount Pleasant Sentenced to More Than 10 Years in Federal Prison for Possession of Child PornographyRead the Press Release
Charleston, South Carolina---- Acting United States Attorney M. Rhett DeHart stated today that Zachary Scott Fasola, 33, of Mount Pleasant, was sentenced to more than ten years in federal prison for possession of child pornography, marking the second federal conviction and sentence for possession of child pornography for Fasola, with his first being in 2016.
Evidence presented in court showed that, on May 16, 2018, the South Carolina Attorney General's Office Internet Crimes Against Children (ICAC) section received a CyberTipline Report from the National Center for Missing and Exploited Children (NCMEC), which had been notified by Facebook of alleged criminal activity on their servers related to a particular email address.
On January 24, 2019, law enforcement executed a search warrant at the residence associated with the email address, which was Fasola’s residence. At the residence, Fasola admitted to downloading child pornography from the internet. Law enforcement seized multiple electronic devices, on which 24 videos and 140 images of child pornography were found, including depictions of prepubescent children engaged in sexual activity with adults.
United States District Judge Richard M. Gergel of Charleston sentenced Fasola to 121 months imprisonment and lifetime supervised release. There is no parole in the federal system. Judge Gergel also ordered Fasola to pay special assessments of $100 and $5,000.
The case was investigated by agents of the Federal Bureau of Investigation and the Charleston County Sheriff’s Office. Assistant United States Attorney Dean H. Secor prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
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Queens Man Sentenced to 57 Months’ Imprisonment for Purchasing Illegally Defaced FirearmRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Joseph Miner was sentenced by United States District Judge William F. Kuntz, II, to 57 months’ imprisonment for purchasing an illegally defaced firearm in May 2020.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
“Today’s sentence holds Miner accountable for his knowing purchase of a firearm that could not be traced because its serial number had been removed,” stated Acting U.S. Attorney Kasulis. “I commend the swift action taken by members of law enforcement to address the serious threat that possession of illegal guns poses to the safety of the community.”
Law enforcement authorities began investigating Miner’s interest in illegally purchasing firearms in late 2019, when he posted on social media his desire to obtain assault weapons and other firearms for a racial civil war or racial holy war. Miner expressed support on social media for racially and ethnically motivated violence, including celebrating the August 2017 white supremacist rally in Charlottesville, Virginia, and the December 2019 machete attack at a synagogue in Monsey, New York. Although Miner at times disavowed interest in conducting an attack himself, on multiple occasions he posted social media messages in which he displayed suicidal ideations and fantasized about “martyring” himself and “go[ing] out in a blaze of glory” in a mass-shooting attack.
In April 2020, Miner initiated contact with an undercover law enforcement agent posing as a firearms dealer. Miner requested to purchase firearms from the undercover agent, knowing that the serial numbers that allow the weapons to be traced were removed from the guns that the undercover agent was offering for sale. Following further communications to set up the gun purchase, Miner and a co-defendant met the undercover agent at a Queens hotel on the evening of May 12, 2020. Miner purchased a Glock 9mm handgun with an obliterated serial number.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Artie McConnell and Josh Hafetz are in charge of the prosecution.
The Defendant:
JOSEPH MINER
Age: 31
Bayside, QueensE.D.N.Y. Docket No. 21-CR-554 (WFK)
Prairie Village Man Sentenced to 12 Years for $7.3 Million Dollar Payday Loan Fraud, $8 Million Tax EvasionRead the Press Release
KANSAS CITY, Mo. – A Prairie Village, Kansas, man was sentenced in federal court today for engaging in two separate fraud schemes related to millions of dollars in false payday loan debt and for tax evasion totaling more than $8 million.
“After raking in millions of dollars from the victims of his fraud scheme, the defendant lied repeatedly and used every trick in the book to hide his ill-gotten gain from the IRS,” said Acting U.S. Attorney Teresa A. Moore. “He spent lavishly on jet travel and luxury cars, but hasn’t voluntarily paid a dime in taxes owed for more than a decade. Adding insult to injury, he even fraudulently obtained a Paycheck Protection Program loan from the government after working for so many years to cheat U.S. taxpayers.”
Joel Jerome Tucker, 52, was sentenced by U.S. District Judge Roseann Ketchmark to 12 years and six months in federal prison without parole. The court also ordered Tucker to pay $8,057,079 in restitution to the Internal Revenue Service, and to forfeit to the government $5,000, which is the amount of stolen proceeds transferred across state lines as referenced in the specific count to which he pleaded guilty.
FBI Acting Special Agent in Charge Michael E. Hensle stated, “Tucker defrauded hundreds of thousands of innocent victims and the U.S. government for his own personal gain. While most people strive to earn an honest living and live the American dream, Tucker chose to live a lavish lifestyle at the cost of working Americans. The FBI will continue to pursue and bring to justice those individuals who take advantage of others for profit and believe they are above the law.”
“Tucker used the proceeds of his criminal activity to live a lavish lifestyle and defraud the American people. His sentencing shows the courts take tax and related fraud schemes seriously,” said Amanda Prestegard, Acting Special Agent in Charge of IRS-Criminal Investigation’s St. Louis Field Office. “IRS-CI aggressively investigates and uncovers complex financial crimes to disrupt criminal activity impacting the U.S. tax system.”
Tucker, working through various companies, serviced payday loan businesses. Tucker’s company names changed over the years; the primary company was eData Solutions, LLC. eData, formally registered on July 29, 2009, did not make loans directly to borrowers; it collected loan application information, referred to as leads, and sold those leads to its approximately 70 payday lender clients. As a loan servicer, eData also provided software for payday lenders.
Tucker and the other owners of eData sold the company to the Wyandotte Indian tribe in 2012. However, despite selling his interest in eData, Tucker maintained a file of 7.8 million leads he had acquired through eData, containing detailed customer information (including names, addresses, bank accounts, Social Security numbers, dates of birth, etc.). eData had collected the detailed customer information from online payday loan applications or inquiries to its payday lender clients; the file did not represent loans that were made. In addition, Tucker obtained and retained data regarding defaulted payday loans eData had acquired from a number of different payday lender clients. Tucker used these files to create falsified debt portfolios.
On July 16, 2020, Tucker pleaded guilty to one count of transporting stolen money across state lines as part of the debt fraud scheme, one count of bankruptcy fraud, and one count of tax evasion. The government also alleged in court filings that Tucker engaged in another fraud scheme that was not charged as part of this case, by fraudulently receiving funds under the Payroll Protection Program.
Debt Fraud Scheme
Tucker admitted that he engaged in a fraudulent debt scheme from 2014 to 2016. This scheme involved marketing, distributing, and selling false debt portfolios. Tucker defrauded third party debt collectors and millions of individuals listed as debtors through the sale of falsified debt portfolios. Tucker sold supposed debts which: 1) he didn’t personally own; 2) were not true debts; 3) had already been sold to other buyers; and 4) contained false lenders, false loan dates, false loan amounts, and false payment status. Some of the “debtors” had only applied for a loan but never received one, either because they withdrew their application or because the loan was not funded. Some of the listed debtors, however, actually paid the debt collectors out of fear or confusion of what they owed. Tucker received as much as $7.3 million from the sale of false debt portfolios in just two years, from early 2014 to early 2016.
As part of his fraud scheme, Tucker transferred the proceeds of the fraud scheme across state lines.
Bankruptcy Fraud Scheme
Tucker also admitted that he executed a related bankruptcy fraud scheme in 2015 and 2016. In his bankruptcy fraud scheme, Tucker also sold fraudulent debt, which entered the United States Bankruptcy Courts nationwide. When the United States Bankruptcy Court investigated these purported debts, which were presented as claims in bankruptcy cases, Tucker repeatedly lied under oath by providing false information and testimony to the Bankruptcy Court in order to conceal his scheme.
Tax Evasion
On April 15, 2014, the United States Tax Court entered a decision that Tucker owed tax deficiencies from 2007 and 2008. The total amount owed in 2014 with interest and penalties was $8,057,079.95. For tax years 2014 - 2016, neither Tucker personally nor any of his companies filed federal tax returns with the Internal Revenue Service. According to court documents, Tucker now owes approximately $12 million in taxes, interest, and penalties for 2007 through 2014. According to court documents, Tucker has never made any voluntary payments toward his tax debt.
Tucker told IRS agents that he had no income and was living on borrowed money, including a lot of borrowed money from his mother. In reality, bank accounts showed Tucker sent money to his mother rather than borrowing money from her. Tucker used nominee bank accounts to conceal income and assets and spent hundreds of thousands of dollars in personal living expenses such as vehicles, chartered jets, travel and entertainment, and a personal residence.
For example, Tucker leased a $1.59 million home in Prairie Village, bought a $105,367 Cadillac Escalade, spent $226,000 for private charter jet services, spent more than $75,000 to lease a Porsche and a Ferrari, spent $17,536 at The Arrabelle, a luxury hotel in Vail, Colorado, made $50,000 in payments to Vail Mountain Club, paid a total of $682,437 in payments to American Express, and made cash withdrawals totaling almost $200,000.
Paycheck Protection Program Fraud
According to court documents, a month before entering a guilty plea to financial crimes, Tucker fraudulently obtained a PPP loan by denying that he was under indictment.
Tucker submitted a loan application to the Small Business Administration for a Paycheck Protection Program (PPP) loan on June 13, 2020. Tucker was originally indicted June 5, 2018. A superseding indictment was returned May 21, 2019. Thus, Tucker had been under federal indictment for two years at the time he completed the PPP loan application. Question 5 of the application asked, “Is the Applicant (if an individual)…subject to an indictment, criminal information, arraignment, or other means by which formal criminal charges are brought in any jurisdiction, or presently incarcerated, or on probation or parole?” Immediately prior to this question, the loan application document notes that “If questions (5) or (6) are answered ‘Yes,’ the loan will not be approved.” (emphasis original). Tucker answered no, and electronically signed the application.
Due to Tucker’s false attestation, his loan request for $20,833 was approved and he received the funds on June 16, 2020.
Although Tucker has not been criminally charged in relation to the fraudulent loan, the court considered those actions as relevant behavior in determining today’s sentence.
This case was prosecuted by Assistant U.S. Attorneys Kathleen D. Mahoney and Patrick D. Daly. It was investigated by the FBI, IRS-Criminal Investigation, and the U.S. Bankruptcy Trustee in the Southern District of Texas.
COVID-19 Fraud Enforcement Task Force
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.
Paterson Man Sentenced to 95 Months in Prison for Coercion and Enticement of MinorRead the Press Release
NEWARK, N.J. – A Passaic County man was sentenced today to 95 months in prison for coercion and enticement of a minor and for illegally re-entering the United States, Acting U.S. Attorney Rachael A. Honig announced.
Juan Carlos Morales Pedraza, 35, of Paterson, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Stanley R. Chesler to a superseding information charging him with coercion and enticement of a minor and of illegally re-entering the United States after having previously been deported. Judge Chesler imposed the sentence by videoconference today.
According to documents filed in this case and statements made in court:
On April 13, 2019, Morales Pedraza approached a 15-year-old victim in Passaic County. Two days later, after engaging in sexual intercourse with the victim, Morales Pedraza and the victim left the New Jersey, with plans to travel to Illinois. Morales Pedraza admitted that he planned to engage in sexual conduct with the victim in Illinois. Law enforcement arrested Morales Pedraza in Ohio.
Morales Pedraza admitted that he is a citizen of Mexico and that he illegally entered the United States after having previously been deported.
In addition to the prison term, Judge Chesler sentenced Morales Pedraza to three years of supervised release.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; the Passaic County Prosecutor’s Office’s Sexual Investigations Unit, under the direction of Prosecutor Camelia M. Valdes, and investigators with the Ohio State Highway Patrol and the Lake Township Police Department in Lake Township, Ohio, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Francesca Liquori of the Organized Crime and Gangs Unit.
Ohio man sentenced to 10 years for carjackingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Ryan Ashley Hubbs, of Paris, Ohio, was sentenced today to 124 months of incarceration for carjacking, Acting U.S. Attorney Randolph J. Bernard announced.
Hubbs, 38, pled guilty in January 2021 to one count of “Carjacking.” Hubbs admitted to using violence to steal a Honda CR-V in Lewis County in October 2016.
Assistant U.S. Attorney Sarah E. Wagner prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Lewis County Sheriff Office; and the Weston Police Department and investigated.
U.S. District Judge Thomas S. Kleeh presided.
North Carolina Man Indicted in Johnstown, PA on Drug ChargeRead the Press Release
Johnstown, PA - A resident of Goldsboro, North Carolina, has been indicted by a federal grand jury in Johnstown on a charge of violating federal narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Charles Triplin, 44, as the sole defendant.
According to the Indictment presented to the court, on June 21, 2021, Triplin was found to attempt to possess with intent to distribute 400 grams or more of a mixture or substance containing a detectable amount of fentanyl.
The law provides for a minimum sentence of 10 years to life, a fine of $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The United States Postal Inspection Service conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Newark Tax Preparer Sentenced to 18 Months in Prison for Aiding and Assisting in Preparation of False Tax ReturnsRead the Press Release
NEWARK, N.J. – A Pennsylvania man who worked as a tax preparer in Newark was sentenced today to 18 months in prison for helping his clients file falsified tax returns that generated larger refunds, Acting U.S. Attorney Rachael A. Honig announced.
Sylvain Dienhoue, 53, of Tobyhanna, Pennsylvania, previously pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an indictment charging him with three counts of aiding and assisting in the preparation of false and fraudulent tax returns. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Dienhoue worked as a tax preparer at Cadi’s Multi Services in Newark. He knowingly and willfully aided and assisted in the preparation of 44 fraudulent tax returns on behalf of clients for the tax years 2014 through 2016. Dienhoue used fabricated and inflated figures, including expenses and itemized deductions, in order to generate inflated refunds.
In addition to the prison term, Judge Wigenton sentenced Dienhoue to one year of supervised release and ordered him to pay restitution of $237,738. He is also precluded from preparing taxes on anyone else’s behalf.
Acting U.S. Attorney Honig credited special agents from IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Samantha C. Fasanello of the U.S. Attorney’s Office’s Criminal Division in Newark.
Nampa Man Pleads Guilty to Possession with Intent to Distribute MethamphetamineRead the Press Release
BOISE - Cainen Bleu Johnson, 43, of Nampa, pleaded guilty to possession with intent to distribute methamphetamine, Acting United States Attorney Rafael M. Gonzalez, Jr., announced today. Johnson was indicted by a federal grand jury in Boise on April 14, 2021.
According to court records, Johnson was pulled over on a routine traffic stop on February 16, 2021. During the traffic stop Johnson became visibly agitated, refused to give his driver’s license to law enforcement, put his vehicle in drive, and fled the scene. After a high-speed chase, law enforcement officers were able to safely perform a pursuit intervention technique (PIT) maneuver to stop the vehicle and apprehended Johnson after a brief standoff. A subsequent search of Johnson’s vehicle uncovered 399.09 grams of methamphetamine that he admitted he intended to distribute to others, along with 5.5 grams of heroin, and 1.3 grams of 3,4-Methylenedioxymethamphetamine (MDMA). Johnson also possessed a digital scale and plastic packaging materials commonly used to weigh and package methamphetamine for distribution.
Johnson faces a statutory mandatory minimum sentence of at least ten years and a maximum sentence of life imprisonment, a $10,000,000 fine, and at least five years of supervised release. Sentencing is set for October 5, 2021, before Chief U.S. District Judge David C. Nye at the federal courthouse in Boise.
Acting U.S. Attorney Gonzalez credited the efforts of the Nampa Police Department which led to the charges.
This case was prosecuted by the Special Assistant United States Attorney hired by the Ada County Prosecuting Attorney’s Office with funds provided by the High Intensity Drug Trafficking Areas (HIDTA) program. HIDTA is part of the Office of National Drug Control Policy (ONDCP) created by Congress with the Anti-Drug Abuse Act of 1988. It provides assistance to federal, state, and local law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States. Idaho is part of the Oregon-Idaho HIDTA. The Idaho HIDTA is a collaboration of local, multi-jurisdictional law enforcement drug task forces, and prosecuting agencies dedicated to addressing regional drug trafficking organizations that operate in Ada, Canyon, Bannock, Kootenai, and Malheur Counties.
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Multiple Men Indicted for Arson and Other Offenses Committed During Unrest in Kenosha; Investigation into Other Suspects ContinuesRead the Press Release
Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on July 7, 2021, a federal grand jury indicted four men, in two separate cases, for various offenses committed during the unrest in Kenosha, Wisconsin, in August 2020.
In the first case, Allen King, David Garner, and Kevin Martinez are charged with conspiring to steal controlled substances and transport stolen goods in interstate commerce, in violation of Title 18, United States Code, Section 371. King and Garner are also charged with two counts of arson, and conspiring to commit arson, in violation of Title 18, United States Code, Sections 844(i) and 844(n). Martinez is additionally charged with illegally possessing ammunition as a felon, in violation of Title 18, United States Code, Section 922(g)(1).
The charge against Martinez for illegally possessing ammunition stems from the shooting incident depicted below.
According to a publicly filed complaint, King, Garner, and Martinez traveled together from Minnesota to Kenosha on August 24, 2020. The complaint alleges that while in Kenosha, King and Garner attempted to set fires at a bar. King, Garner, and Martinez also looted and damaged other establishments in Kenosha, including a pharmacy and a gas station. The complaint further alleges that all three men described their illegal activities on social media, with King and Garner attempting to sell the stolen controlled substances over that same platform.
In the second case, Devon Vaughn is charged with arson, in relation to the fire at B&L Office Furniture in Kenosha.
Each of the arson crimes described above carries a mandatory minimum term of five years’ imprisonment.
“These cases are the direct result of the dedicated, skilled, and collaborative efforts of ATF and its federal, state, and law enforcement partners,” stated Acting U.S. Attorney Frohling. “Along with our partners, the Department of Justice is committed to holding individuals who engage in arson and other violent offenses accountable for their actions.”
“I commend all the law enforcement agencies for their tireless efforts and the United States Attorney’s Office for their diligence in charging these crimes that were committed during the civil unrest in Kenosha last August,” remarked ATF Special Agent in Charge Kristen de Tineo of the Chicago Field Division. “ATF, alongside our partners, will continue to investigate those violent acts, and appeal to the public for their assistance, to ensure those responsible are held accountable.”
“The Kenosha Police Department is grateful for the support and resources provided by our Federal, State and Local partners,” said Kenosha Police Chief Eric Larsen. “We are committed to continuing our joint investigations into the destruction that occurred in the City of Kenosha last August, until every last person responsible is brought to justice.”
Law enforcement is still investigating various other crimes associated with the unrest in Kenosha. Anyone with information about the individuals depicted in the following photos should contact Kimberly Nerheim, Public Affairs Specialist, Bureau of Alcohol, Tobacco, Firearms and Explosives, at (773) 658-6419. There is a potential reward involved.
These cases were investigated by the Milwaukee Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kenosha Police Department, the Kenosha County Sheriff’s Office, and the Milwaukee County Sheriff’s Office. They will be prosecuted by Assistant United States Attorneys Kevin Knight and Philip Kovoor.
An indictment is only a charge and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government must prove them guilty beyond a reasonable doubt.
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Mexican National Living in Meriden Sentenced to 4 Years in Federal Prison for Trafficking HeroinRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that JESUS GOMEZ, 58, a citizen of Mexico last residing in Meriden, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 48 months of imprisonment for trafficking heroin.
According to court documents and statements made in court, in 2019, the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force learned that Gomez and Abisael Perez, of the Bronx, New York, were involved in the distribution of multi-kilogram quantities of heroin in the Meriden area. In November 2019, investigators made a controlled purchase of approximately 50 grams of heroin from Gomez and Perez.
Investigators next arranged to purchase two kilograms of heroin from Gomez and Perez. On November 17, 2019, investigators observed Gomez, Perez and a third individual, Heriberto Borrero, of Meriden, meeting at a construction site in Berlin. After the three individuals drove away from the site together, Berlin Police stopped their car. A subsequent search of a car that Perez had driven to and parked at the construction site revealed two packages containing a total of approximately two kilograms of heroin.
In 2012, Gomez was encountered by immigration authorities in Connecticut and, in March 2014, was removed to Mexico. Three months later, he illegally reentered the U.S. and was removed to Mexico a second time. He again illegally returned to the U.S. and was living in the country under an assumed identity at the time of his arrest.
Gomez has been detained since his arrest on November 17, 2019. On January 22, 2021, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin.
Perez and Borrero also pleaded guilty. On March 16, 2021, Perez was sentenced to 60 months of imprisonment and, on April 20, 2021, Borrero was sentenced to three years of probation and 100 hours of community service.
This matter was investigated by the DEA’s Bridgeport HIDTA Task Force with the assistance of the Berlin Police Department. The Task Force includes personnel from the DEA Bridgeport Resident Office, the Connecticut State Police, and the Bridgeport, Norwalk, Stamford, Stratford, Milford and Danbury Police Departments.
The case was prosecuted by Assistant U.S. Attorney Maria del Pilar Gonzalez through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.