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Monday 12 July 2021
Upshur County woman sentenced to 10 years for meth distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Ashley Nichole Bennett, of Buckhannon, West Virginia, was sentenced today to 121 months of incarceration for a drug charge, Acting U.S. Attorney Randolph J. Bernard announced.
Bennett, 35, pleaded guilty in February 2021 to one count of “Distribution of Five Grams or More of Methamphetamine.” Bennett admitted to selling more than five grams of methamphetamine, also known as “crystal” and “ice,” in January 2020 in Harrison County.
Assistant U.S. Attorney Brandon S. Flower prosecuted the case on behalf of the government. The Greater Harrison Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Thomas S. Kleeh presided.
United States Files Complaint and Reaches Agreement on Stipulation with Limetree Bay Terminals LLC and Limetree Bay Refining LLC Relating to Petroleum Refinery in St. Croix, U.S. Virgin IslandsRead the Press Release
Today, the U.S. Department of Justice, on behalf of the U.S. Environmental Protection Agency (EPA), filed a complaint in federal court in the U.S. Virgin Islands against Limetree Bay Terminals LLC and Limetree Bay Refining LLC (jointly Limetree Bay) alleging that the companies’ St. Croix petroleum refinery presents an imminent and substantial danger to public health and the environment. In a stipulation filed simultaneously with the complaint that acknowledges that the refinery is not currently operating and that Limetree Bay does not intend to restart the refinery at the present time, Limetree Bay has agreed to a number of requirements, including the following:
- Complete all corrective measures that are necessary to eliminate any imminent and substantial endangerment to public health or welfare or the environment posed by the refinery or refinery process units before the refinery or any refinery process unit restarts;
- Notify the United States and the court no fewer than 90 days before restarting the refinery or any refinery process unit;
- Install hydrogen sulfide (H2S) and sulfur dioxide (S02) monitors at nine monitoring sites prior to restart of the refinery or any refinery process unit; and
- Submit a plan for EPA approval to purge hydrocarbons from refinery process units and other equipment at the refinery as part of the process of indefinite shutdown. The hydrocarbon purging plan will include the operation of ambient air monitoring.
“Today’s action shows the Department of Justice’s commitment to enforcing the Clean Air Act and protecting American communities from harmful air pollution,” said Acting Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division.
“EPA is committed to ensuring that Limetree Bay’s activities and operations comply with laws that protect public health,” said Acting Regional Administrator Walter Mugdan for the EPA. “Today’s action and stipulation further strengthen our work to protect communities near this refinery by securing a binding commitment from the company that any restart of operations or initiation of long-term shutdown activities, such as purging gases, must receive EPA’s prior approval. These actions advance EPA’s commitment to environmental justice and to protect clean air for those living in vulnerable and overburdened communities.”
Since February of this year, the refinery experienced multiple major incidents resulting in significant air pollutant and oil releases. Many residents in the surrounding St. Croix community reported becoming sickened by some of the releases.
Following four incidents at the refinery, EPA issued an administrative order (EPA Order) to Limetree Bay Terminals LLC and Limetree Bay Refining LLC on May 14. The EPA Order issued under Section 303 of the Clean Air Act required Limetree Bay to cease refinery operations; conduct an environmental compliance audit and process area audits of the refinery’s flare system, delayed coking unit, and sulfur recovery unit; and submit a corrective measures plan to address the audits’ findings.
Under Section 303 of the Clean Air Act, the EPA Order remains effective for 60 days unless the United States files a complaint seeking longer-term relief. By filing today’s complaint, the EPA order is automatically extended by 14 days. The complaint seeks an injunction requiring Limetree Bay to comply with the requirements of the EPA order, to take all measures necessary to eliminate the imminent and substantial endangerment before restarting refinery operations including complying with the corrective measures plan, and other appropriate relief.
Members of the public can help protect our environment by identifying and reporting environmental violations. Learn more here: https://www.epa.gov/enforcement/report-environmental-violation-general-information.
Two Sentenced to over 5 Years in Prison for COVID-19 Unemployment Benefit Fraud SchemeRead the Press Release
FRESNO, Calif. — Jason Vertz, 51, of Fresno, and Alana Powers, 45, an inmate at the Central California Women’s Facility (CCWF) in Chowchilla, were each sentenced today by U.S. District Judge Dale A. Drozd to five years and one month in prison for conspiracy to commit mail fraud and aggravated identity theft, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Vertz and Powers submitted several fraudulent unemployment insurance claims in Powers’ and other CCWF inmates’ names to the California Employment Development Department (EDD). Recorded jail calls and emails show that Powers and other inmates provided names, dates of birth, and social security numbers for inmates at CCWF to Vertz to submit the fraudulent claims. Shortly thereafter, the benefits were loaded onto debit cards that were mailed to the addresses the defendants provided.
The underlying applications for the claims stated that the inmates had worked within the prescribed period as maids, cleaners, fabrication welders, and other occupations, and that they were available to work, which was not true because they were incarcerated. The claims would have been denied if accurate answers had been given. EDD and the United States have suffered an actual loss of over $74,000 as a result of the fraud.
This case was the product of an investigation by the FBI, the California Department of Corrections and Rehabilitation Investigative Services Unit, and the California EDD. Assistant U.S. Attorneys Alexandre Dempsey and Joseph Barton are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Two San Fernando Valley Men Who Ran Large-Scale Counterfeit Identification Document Ring Receive Federal Prison SentencesRead the Press Release
LOS ANGELES – Two San Fernando Valley men who participated in an extensive scheme that produced and sold counterfeit identity documents – including United States passport cards, Social Security cards and driver’s licenses – each received federal prison sentences today.
Carlos Ayala Hernandez, a.k.a. “Juan Juarez,” 45, of Granada Hills, was sentenced today to 30 months in federal prison by United States District Judge John F. Walter. Also today, Judge Walter sentenced Miguel Juarez Guerrero, 24, of Van Nuys, to 20 months in federal prison.
Hernandez pleaded guilty on April 27 to one count of conspiracy to produce, transfer and possess false identification documents, and one count of being an illegal alien in possession of firearms. Guerrero pleaded guilty on May 3 to one count of conspiracy to produce, transfer and possess false identification documents, and one count of producing false identification documents.
From January 2016 to January 2021, Hernandez, Guerrero and Nestor Perez, a.k.a. “Daniel Perez,” 32, of Van Nuys, operated an illegal business in which they manufactured and sold false identification documents. These counterfeit documents included U.S. passport cards, lawful permanent resident cards (more commonly known as “Green Cards”), employment authorization document cards, Social Security cards, and driver’s licenses purporting to be from multiple states.
At the direction of – and in exchange for payment from – Hernandez and Guerrero, Perez manufactured the counterfeit identification documents at a Van Nuys apartment. Perez made the bogus documents using personal identifying information – including names, dates of birth and Social Security numbers – of real persons After manufacturing the phony documents, Perez provided them to Hernandez and Guerrero, who then sold the documents to others.
In January 2021, law enforcement executed search warrants on Hernandez’s residence and the Van Nuys apartment. In Hernandez’s residence – where Guerrero also lived – law enforcement found firearms, assorted ammunition and $40,483 generated from the false identification document scheme.
At the Van Nuys apartment, officers also found a robust counterfeit document lab, including approximately 243 completed false identification documents, approximately 1,000 fraudulent authentication seals, 14 printers, a scanner and an ultraviolet light used to test the security features on counterfeit ID documents.
Hernandez, a Mexican national, admitted in his plea agreement that he knew he was an illegal alien in the United States, including during the times he possessed the firearms.
Perez pleaded guilty on April 12 to one count of conspiracy to produce, transfer and possess false identification documents, and one count of producing false identification documents. His sentencing hearing is scheduled for July 19.
Homeland Security Investigations and the Ventura County Sheriff’s Office investigated this matter.
Special Assistant United States Attorney Matthew C. Chan and Assistant United States Attorney Gregory D. Bernstein, both of the General Crimes Section, are prosecuting this case.
Two Men Sentenced to Federal Prison for Gun CrimesRead the Press Release
CHARLESTON, W.Va. – Two men were sentenced to federal prison today for federal gun crimes.
Jalen Chapman, 28, of Charleston, was sentenced to 84 months in federal prison for being a felon in possession of a firearm. According to the plea agreement and statements made in court, officers with the Charleston Police Department arrested Chapman on an outstanding warrant at a residence on Barber Drive in Charleston on or about September 29, 2018. Officers later searched the residence and seized two firearms, a .45 caliber Sig Sauer 1911 pistol and a .38 Special Taurus revolver. Chapman admitted that the firearms belonged to him and that he knew he was prohibited from possessing the firearms because he was previously convicted of a felony drug trafficking offense in Kanawha County Circuit Court. Officers also seized approximately 368 grams of methamphetamine and over 20 grams of cocaine base from a grill located outside the home. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Charleston Police Department conducted the investigation. United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorney Negar M. Kordestani and former Assistant United States Attorney Ryan A. Saunders handled the prosecution.
In a separate case, Jamaile Huey, 43, of Detroit, Michigan was sentenced to 80 months in prison for being a felon in possession of a firearm. Huey will serve 3 years of supervised release upon completion of his federal prison sentence. According to court documents and statements made in court, on or about January 8, 2021, members of the Huntington Police Department SWAT Team executed a search warrant for the person of Jamaile Huey at an apartment on Bridge Street in Huntington. During the execution of the warrant, Huey was located in the apartment and placed into custody. During a search of the apartment, a loaded Glock, model 17, 9mm pistol, was located in the nightstand in the room that Huey had been observed coming from when apprehended by the SWAT team. A loaded high-capacity magazine for the Glock pistol was also located in the same room. At the time he possessed the firearm, Huey had three previous felony convictions. The Huntington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation. United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorneys Courtney Cremeans and Greg McVey handled the prosecution.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Charleston Police Department and the Huntington Police Department.
These cases were prosecuted as part of the Project Safe Neighborhoods (PSN) program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 2:19-cr-00058 (Chapman) and . 3:21-cr-00030 (Huey).
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Texas man suspected of sexually assaulting minor girl on flight to Bozeman appears in courtRead the Press Release
MISSOULA – A Texas man suspected of sexually assaulting a minor girl while on a flight from Austin, Texas, to Bozeman had an initial appearance on a criminal complaint today, Acting U.S. Attorney Leif M. Johnson said.
The criminal complaint accuses Vincent Harry Kopacek, 76, of Fredericksburg, Texas, of three federal crimes: attempted sexual abuse of a minor, abusive sexual contact and assault within maritime and territorial jurisdiction. If convicted of the most serious crime, Kopacek faces a maximum 15 years in prison, a $250,000 fine and five years of supervised release.
A criminal complaint is only an accusation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
U.S. Magistrate Judge Kathleen L. DeSoto presided. Kopacek was detained pending further proceedings.
According to the criminal complaint and documents filed in support of the complaint, on July 9, the FBI was contacted by an officer with the Bozeman Yellowstone International Airport Public Safety Office that the previous night, on July 8, a 15-year-old girl had been assaulted while on an aircraft from Austin to Bozeman. Upon departing the airport, the girl reported the incident to her family, who then contacted law enforcement.
The court documents allege that the girl was seated in a window seat, which was fully upright during the flight, and that Kopacek was sitting directly behind the girl’s seat. Kopacek allegedly reached his hand around the girl’s seat between her seat and the interior wall of the aircraft and touched the girl’s body. The girl documented the alleged activity with her cell phone. The activity took place from prior to takeoff in Austin to before landing in Bozeman.
FBI agents arrested Kopacek in Bozeman on July 11 when he checked in for his flight departing the airport.
Assistant U.S. Attorney Cyndee L. Peterson is prosecuting the case, which was investigated by the FBI, Gallatin County Sheriff’s Office and the Bozeman Yellowstone International Airport Public Safety Office.
PACER case reference. 21-072.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Tangipahoa Man Pleads Guilty to Distributing MethamphetamineRead the Press Release
NEW ORLEANS, LOUISIANA – A Ponchatoula man pleaded guilty on July 7, 2021, to distributing methamphetamine.
According to court documents, AARON NAKEENEN WOMACK, 24, distributed methamphetamine from a residence in Ponchatoula, Louisiana, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(B), on February 22 and February 26, 2020. Execution of a federal search warrant on a residence resulted in the seizure of methamphetamine, heroin, and cocaine.
WOMACK is scheduled to be sentenced on October 6, 2021, and faces a mandatory minimum of five years, up to a maximum of 40 years in federal prison, up to a $5,000,000.00 fine, at least 4 years of supervised release following incarceration, and a $100 mandatory special assessment fee. Federal U.S. District Court Judge Ivan L.R. Lemelle will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Duane A. Evans of the Eastern District of Louisiana praised the work of Homeland Security Investigations Border Enforcement Security Task Force, which is an initiative of the Gulf Coast High Intensity Drug Trafficking Area Task Force, with assistance from Customs and Border Protection Air and Marine Operations, Drug Enforcement Administration, Louisiana State Police, Hammond Police Department, Ponchatoula Police Department, St. Helena Parish Sheriff’s Office, Livingston Parish Sheriff’s Office, St. Tammany Parish Sheriff’s Office, and Tangipahoa Parish Sheriff’s Office.
Assistant United States Attorney Paige O’Hale is prosecuting the case.
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Southwest Georgia Resident Criminally Charged with CARES Act PPP FraudRead the Press Release
ALBANY, Ga. – A federal grand jury has returned a 12-count indictment charging a Sycamore, Georgia, resident with bank fraud, money laundering and making false statements related to the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Anthony C. Boncimino, 46, of Sycamore, was indicted on July 8, 2021 with four counts of bank fraud, four counts of money laundering and four counts of making false statements. If convicted, the defendant faces a maximum penalty of 30 years in prison and a $1,000,000 fine for bank fraud, a maximum penalty of 10 years in prison and a $250,000 fine for money laundering and a maximum penalty of 5 years in prison and a $250,000 fine for making false statements. The defendant was released on bond.
According to the filed indictment, Boncimino allegedly submitted at least four fraudulent loan applications to the Small Business Administration (SBA) and third-party banks for Paycheck Protection Program (PPP) loans on behalf of shell companies, although these companies suffered no losses. The Government alleges that these businesses either did not exist, did not conduct business or only existed on paper. As a result of the fraud, Boncimino obtained approximately $2,600,000 in PPP loans, conducting numerous transactions with the money. This indictment is merely an allegation, and the Defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
“Fraudsters who attempt to capitalize during a global pandemic will face the possibility of federal prosecution for their crimes,” said Peter D. Leary, the Acting U.S. Attorney for the Middle District of Georgia. “Federal investigators will persist in unraveling the often-complex CARES Act fraud schemes and bring criminals to justice.”
“Lying to gain access to economic stimulus funds for personal gain will be met with justice,” SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “SBA OIG, in coordination with its law enforcement partners, will relentlessly pursue evidence of fraud against SBA’s programs aimed at assisting the nation’s small businesses struggling with the pandemic challenges. I want to thank the U.S. Attorney’s Office for its leadership and dedication to pursuing justice.”
"The Treasury Inspector General for Tax Administration aggressively pursues those who endeavor to defraud programs afforded to the American people under the CARES Act," said J. Russell George, the Treasury Inspector General for Tax Administration. "We appreciate the efforts of the Department of Justice and our law enforcement partners in this effort."
“While businesses were suffering and trying their best to make it through the pandemic, others chose greed. IRS-CI will continue to use its financial expertise to track and recommend prosecution of criminals taking advantage of a crisis,” stated James E. Dorsey, Special Agent in Charge IRS-Criminal Investigation.
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.
Small Business Administration-OIG Eastern Region, the Treasury Inspector General for Tax Administration and IRS-Criminal Investigation are investigating the case.
Assistant U.S. Attorney Jim Crane is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Solon Man Sentenced to Prison for Child Pornography OffensesRead the Press Release
DAVENPORT, IOWA – A Solon man, Alfredo Alexander Lujan, was sentenced on June 30, 2021, by United States District Court Judge Stephanie M. Rose to 144 months in prison for Receipt and Possession of Child Pornography. Lujan was ordered to serve a five-year term of supervised release to follow his prison sentence, pay $200.00 to the Crime Victims’ Fund, and pay a $5,000.00 special assessment in accordance with the Justice for Victims of Trafficking Act.
According to court documents, Alfredo Alexander Lujan, age 43, was identified by the Federal Bureau of Investigation as having traded child pornography with an individual in North Carolina. Further investigation revealed they had sent links containing child pornography via the KIK application to one other. Law enforcement executed a search warrant at Lujan’s residence and seized multiple electronic devices. Lujan admitted receiving and possessing child pornography. In total, Lujan possessed nearly 200 images and videos depicting child pornography. On February 19, 2021, Lujan pleaded guilty to the charges brought against him.
Acting U.S. Attorney Richard D. Westphal of the Southern District of Iowa made the announcement.
The FBI investigated the case. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the U.S. Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nation-wide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children. Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
Sixth Defendant Sentenced for Marijuana Grow in Shasta-Trinity National ForestRead the Press Release
SACRAMENTO, Calif. — Pedro Alvarez-Alcazar, 28, a citizen of Mexico, was sentenced today by U.S. District Judge Kimberly J. Mueller to five years in prison for conspiracy to manufacture marijuana, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, after a nearly three-month investigation on Aug. 21, 2018, law enforcement agents raided a marijuana-cultivation site in the Shiell Gulch area of the Shasta-Trinity National Forest. Officers apprehended Alcazar-Alvarez at the site after he tried to draw a sheathed knife while struggling with the officer attempting to detain him. Co-defendants Fidencio Palacios-Riano, 22, and Romualdo Palacios-Hernandez, 38, both citizens of Mexico, were also apprehended at the site. Co-defendants Jesus Manzo Canela, 28, a citizen of Mexico; Jose Jesus Suarez Villa, 35, a citizen of Mexico; Joseph William Manzo, 32, of Sacramento; and Francisco Jesus Maldonado, 25, of Denair, were apprehended in a vehicle that had just visited the site. While at the site, officers observed bags being loaded into the trunk of the vehicle, and later found the trunk contained garbage bags holding 84 one-pound bags of processed marijuana. Agents eradicated 6,544 growing marijuana plants and seized another 500 pounds of processed marijuana at the site.
Alvarez-Alcazar is the sixth of seven defendants to be sentenced in connection with the marijuana grow. Romualdo Palacios-Hernandez was sentenced on Jan. 6, 2020 to two years and six months in prison; Jesus Manzo Canela was sentenced on Feb. 3, 2020 to three years and 10 months in prison; Fidencio Palacios-Riano was sentenced on Feb. 10, 2020 to two years and six months in prison; Jose Jesus Suarez Villa was sentenced on Feb. 10, 2020 to 17 months and 21 days in prison; and Joseph William Manzo was sentenced on March 2, 2020 to five years in prison. Francisco Jesus Maldonado is scheduled to be sentenced on Nov. 8, 2021.
This case is the product of an investigation by the U.S. Forest Service, the U.S. Bureau of Land Management, the Trinity County Sheriff’s Office, the California Department of Fish and Wildlife, and the Campaign Against Marijuana Planting (CAMP). Assistant U.S. Attorney Shelley Weger is prosecuting the case.
Ringleader of Extensive Sinaloa Cartel-Linked Fentanyl and Heroin Trafficking Network SentencedRead the Press Release
NEWPORT NEWS, Va. – The ringleader behind an extensive drug trafficking ring was sentenced today to 33 years in prison for distributing large amounts of fentanyl, heroin, and cocaine in Newport News and North Carolina.
“This defendant served in a significant leadership role as the regional distributor of heroin, fentanyl, and cocaine for the Sinaloa Cartel, one of the most prolific and violent cartels in the world,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “EDVA will continue working with our law enforcement partners to combat these transnational criminal organizations in order to protect the health and safety of our communities.”
According to court documents, Ramiro Ramirez-Barreto, 44, from the Mexican State of Morelos, operated a continuing criminal enterprise with ties to Virginia, North Carolina, and California. Ramirez-Barreto was linked to the Sinaloa Cartel in Mexico, as were his drug sources, and his operation supplied cocaine, heroin, and fentanyl to numerous drug trafficking organizations in Newport News, Virginia, and in Henderson and Greensboro, North Carolina. According to one of Ramirez-Barreto’s many North Carolina customers, Ramirez-Barreto supplied him with 60 kilograms of heroin from early 2018 to mid-2019. Another one of Ramirez-Barreto’s customers was an inmate in federal prison operating a drug trafficking organization in Henderson, North Carolina, using a bootleg mobile phone.
In addition to his sentence, Ramirez-Barreto was ordered to pay a forfeiture money judgment of $4,200,000 and forfeit his house in Lawrenceville.
Barreto was arrested in 2019 as a result of Operation Cookout.
Background on Operation Cookout
In August 2019, over 120 law enforcement officers from 30 law enforcement agencies in Virginia, North Carolina, and Texas executed a major operation, known as Operation Cookout, which resulted in 35 defendants being arrested for their respective roles in the conspiracy, along with the seizure of 24 firearms, 30 kilograms of fentanyl, 30 kilograms of heroin, 5 kilograms of cocaine, and over $700,000 in cash.
To date, 45 total defendants have been charged in Operation Cookout. All 45 defendants have admitted their criminal conduct and pleaded guilty. Thus far, 41 defendants have been sentenced, with the majority being sentenced to prisons terms ranging from two to ten years, and five defendants sentenced between 15 to 25 years in prison.
These prosecutions are part of an Organized Crime Drug Enforcement Task Force’s (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.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Washington D.C.; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s Washington Division; Darrell J. Waldon, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI); Colonel Gary T. Settle, Superintendent of Virginia State Police; Steve R. Drew, Chief of Newport News Police; Mark Talbot, Chief of Hampton Police; Col. K.L. Wright, Chief of Chesapeake Police; and Hampton Commonwealth’s Attorney Anton A. Bell, made the announcement after sentencing by U.S. District Judge David J. Novak.
Assistant U.S. Attorneys Kevin Hudson and Peter G. Osyf and Special Assistant U.S. Attorney Amy E. Cross are prosecuting the case.
The following law enforcement agencies provided significant assistance during the investigation and arrest operation: U.S. Marshals Service, Newport News Sheriff’s Office, Chesapeake Sheriff’s Office, York-Poquoson Sheriff’s Office, Tennessee Highway Patrol, Amarillo Police, and Brunswick County Sheriff’s Office. Approximately 30 law enforcement agencies assisted in the arrest operation in Virginia, North Carolina, and Texas.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:19-cr-47.
Rantoul Man Sentenced to 150 Months in Prison for Child Pornography CrimesRead the Press Release
URBANA, Ill. –Dwayne White, 56, of the 1300 block of Briarcliff Dr., in Rantoul, Ill., was sentenced today to 150 months (12 1/2 years) in federal prison for distribution and possession of child pornography.
On March 8, 2021, White entered a plea of guilty to the indictment. The indictment charged White with two counts of distribution of child pornography and one count of possession of child pornography between April 2, 2020, and June 18, 2020. White has been in the custody of the U.S. Marshals since his arrest on June 18, 2020.
Following White’s release from prison, he will be on federal supervised release for 10 years and will be required to register as a sex offender.
The charges were investigated by the Department of Homeland Security, Immigration and Customs Enforcement; the Champaign County Sherriff’s Office; and the Internet Crimes Against Children Task Force led by the Illinois Attorney General. Assistant U.S. Attorney Elly M. Peirson represented the government in the prosecution.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Pueblo Man Sentenced for Being a Prior Felon in Possession of a FirearmRead the Press Release
DENVER — The U.S. Attorney’s Office for the District of Colorado announces that Angel Castro of Pueblo, CO, was sentenced by U.S. District Court Judge Raymond Moore to serve 120 months in prison for possessing a firearm after previously being convicted of a felony. Castro pled guilty to the present charge on April 22, 2021.
After threatening another individual on social media over the course of several days, Castro shot the person in the back of the head. The shooting occurred on July 10, 2020, while the victim was driving his car in Pueblo. Because he was able to quickly obtain medical treatment, the victim survived. When officers arrested Castro on August 31, 2020, they found a loaded firearm. Forensic examination connected the recovered firearm to a shell casing recovered from the shooting. Castro had previously been convicted of a felony offense.
“Angel Castro’s callous willingness to shoot another person made him an obvious danger to the community,” said Acting U.S. Attorney Matt Kirsch. “The U.S. Attorney’s Office will pursue any available federal charges to get dangerous criminals like him off the streets.”
“Part of law enforcement’s efforts to reduce violent crime is removing weapons from convicted felons like Angel Castro, who have demonstrated a propensity for violence against others," said FBI Denver Special Agent in Charge Michael Schneider. "The ten-year sentence in this case should serve notice of the FBI’s commitment to the Pueblo community and to our continued work with the Pueblo Police Department, the Pueblo County Sheriff’s Office, and the U.S. Attorney’s Office to make our community safer for everyone.”
This matter was investigated by the Federal Bureau of Investigation and the Pueblo Police Department and prosecuted by the Violent Crime and Immigration Section of the U.S. Attorney’s office.
Case No. 20-cr-00323-RM
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Pleasantville, PA Man Sentenced to 16 Years for Producing Child PornographyRead the Press Release
ERIE, Pa. - A former resident of Pleasantville, Pennsylvania, has been sentenced in federal court to 16 years in jail, 5 years supervised release, and ordered to pay $30,162.96 in restitution on his conviction of violating federal laws relating to the sexual exploitation of children, Acting United States Attorney Stephen R. Kaufman announced today.
Senior United States District Judge David S. Cercone imposed the sentence on Scott A. Anthony, 50.
According to information presented to the court, the evidence presented at trial established that Anthony produced sexually explicit videos depicting two minors. Anthony surreptitiously recorded the two minor victims, without their knowledge, while they were using a bathroom.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Prior to imposing sentence, Judge Cercone noted that Anthony’s conduct was extremely disturbing and occurred over a lengthy period.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the Federal Bureau of Investigation, the Pennsylvania State Police and the Millcreek Police Department for the investigation leading to the successful prosecution of Anthony.
Pittsburgh Man Pleads Guilty in String of Armed Robberies across Allegheny CountyRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to charges of conspiracy to commit robbery, robbery, and brandishing a firearm during a crime of violence, Acting United States Attorney Stephen R. Kaufman announced today.
True Kinnon, age 22, pleaded guilty to nine counts before United States District Judge William S. Stickman IV.
In connection with the guilty plea, the court was advised that Mr. Kinnon and his coconspirators committed seven armed robberies in Allegheny County from November 2018 through February 2019. All of these robberies were of businesses located throughout the City of Pittsburgh, and in Penn Hills, Turtle Creek, Oakmont, and Monroeville. During many of these robberies, Mr. Kinnon and his coconspirators brandished firearms, including an assault-style rifle and a revolver, at employees and customers of the businesses, and took money and personal property from both employees and customers.
Judge Stickman scheduled sentencing for November 16, 2021 at 1:30 p.m. Under the terms of the plea agreement, the parties agreed to a sentence of 14 years of incarceration, followed by three years of supervised release. Judge Stickman may either accept or reject this plea agreement.
Pending sentencing, Mr. Kinnon will remain incarcerated.
Assistant United States Attorney Doug Maloney is prosecuting this case on behalf of the government.
The successful investigation and prosecution of Mr. Kinnon was the result of the collaborative work of the Pittsburgh Bureau of Police, the Monroeville Police Department, the Penn Hills Police Department, the Wilkins Township Police Department, the Oakmont Police Department, the Allegheny County District Attorney’s Office, and the Federal Bureau of Investigation.
Pembroke Township Man Sentenced to 10 Years in Prison for Selling FirearmsRead the Press Release
URBANA, Ill. –Jeremiah Hill, 32, of the 14100 block of East Central, Pembroke Township, in rural Kankakee County, Ill., was sentenced today to 120 months (10 years) in federal prison for possession of firearms by a felon.
On March 25, 2021, Hill entered a plea of guilty to the indictment. The indictment charged Hill with five counts of possession of a firearm by a felon between March 24, 2019, and July 1, 2019. Hill has remained in the custody of the U.S. Marshals since his arrest on July 17, 2019. According to court documents, Hill sold a total of eleven firearms to an undercover agent.
Hill will be required to complete three years of supervised release following his release from the Bureau of Prisons.
The charges were investigated by Bureau of Alcohol, Tobacco, and Firearms and the Kankakee Police Department. Assistant U.S. Attorney Elly M. Peirson represented the government in the prosecution.
North Highlands Man Sentenced to 5 Years in Prison for Fentanyl DistributionRead the Press Release
SACRAMENTO, Calif. — Sergey Tkachuk, 28, of North Highlands, was sentenced today by U.S. District Judge Kimberly J. Mueller to five years in prison for distribution of fentanyl, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, in March 2016, Tkachuk obtained 40 pills bearing the mark “M367,” which indicated that the pill was a Lortab 10 or Norco. The pills were in fact counterfeit versions and contained fentanyl. Tkachuk then sold 16 of the pills to another person for $6 per pill, and that person subsequently died of an overdose.
On April 19, 2021, Tkachuk pleaded guilty to distribution of fentanyl. The plea agreement indicates that Tkachuk did not know that the pills were counterfeit.
“This case is another example of the extreme danger posed by pills that appear to be legitimate pharmaceutical products but actually contain fentanyl,” Acting U.S. Attorney Talbert said. “The public should be aware than any pill that did not come directly from a pharmacy as a result of a valid prescription could contain deadly quantities of fentanyl or other drugs. Counterfeit pills often look exactly like legitimate pills, but they have caused untold numbers of deaths as a result of what they actually contain. This sentence should be a message to anyone buying or selling illicitly obtained pills—not knowing that pills contain fentanyl is not an excuse from criminal liability and taking them could result in death.”
This case was the product of an investigation by the Drug Enforcement Administration. Assistant U.S. Attorney Paul Hemesath prosecuted the case.
New York Business Owner Pleads Guilty to Payroll Tax FraudRead the Press Release
The owner of a Brooklyn construction business, AD Custom Interiors Inc., pleaded guilty on July 9 to not paying payroll taxes to the IRS.
According to court documents, as the sole owner and operator of AD Custom, Anthony Riccio had a duty to truthfully account for and pay over to the IRS payroll taxes owed by his employees. From approximately January 2011 through January 2016, Riccio cashed over $3.1 million in checks paid to AD Custom. Riccio used some of that cash to pay wages to his employees. Riccio concealed these cash payments from AD Custom’s return preparer, causing the accountant to prepare employment tax returns that underreported wages and payroll taxes owed. Over five years, Riccio failed to pay $255,433 in federal payroll taxes, including income, Social Security and Medicare taxes, owed by AD Custom and its employees.
Riccio is scheduled to be sentenced on Oct. 21 and faces a maximum penalty of five years in prison. Riccio also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Shawn T. Noud and Mark W. Kotila of the Justice Department’s Tax Division are prosecuting the case.
New Orleans Man Pleads Guilty to Violating the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced today that MATTHEW BARRA, 33, from Orleans Parish, pled guilty on July 8, 2021 to a one-count superseding indictment. The superseding indictment charged BARRA with being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
Between May 8 – 29, 2019, BARRA possessed four firearms. Before May 2019, he was convicted of various felonies stemming from several incidents in Orleans Parish and East Baton Rouge Parish, which precluded him from possessing firearms.
At sentencing, BARRA faces up to a maximum term of imprisonment of up to ten (10) years, a maximum fine of up to $250,000, up to 3 years of supervised release following any term of imprisonment, and a $100 mandatory special assessment.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department. It was prosecuted by Assistant United States Attorney Melissa Bücher of the U.S. Attorney’s Office.
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Nebraska Railcar Cleaning Company and its Owners Plead Guilty to Violating Environmental and Worker Safety Laws Related to Workers’ 2015 DeathsRead the Press Release
Nebraska Railcar Cleaning Services LLC (NRCS), its president and owner, Steven Michael Braithwaite, and its vice president and co-owner, Adam Thomas Braithwaite, pleaded guilty today in federal court in Omaha to charges stemming from an investigation into a 2015 fatal railcar explosion that killed two workers. The charges include conspiracy, violating worker safety standards resulting in worker deaths, violating the Resource Conservation and Recovery Act (RCRA), and submitting false documents to the Occupational Safety and Health Administration (OSHA).
“The Department of Justice is dedicated to protecting the health and safety of American workers and to protecting our environment,” said Acting Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division. “The defendants in this case put their employees at risk and falsified documents to evade worker safety requirements. Tragically, two of their employees died while working with hazardous waste under unsafe conditions. Guided by its managers, NRCS failed to appropriately dispose of hazardous wastes removed during the cleaning process — wastes that are ignitable and can cause human cancer and other health effects. Today’s guilty pleas show that the Department of Justice will prosecute those who thwart federal laws created to protect American workers and the environment.”
“Worker safety standards and environmental regulations are not just meaningless rules made up by faceless bureaucrats,” said Acting U.S. Attorney Jan Sharp of the District of Nebraska. “They address real-world safety issues, and failure to abide by them can cost lives. Today’s guilty pleas emphasize the grave consequences of cutting corners, not only for the workers who are meant to be protected, but also for the employers who fail to live up to their responsibilities.”
“The Occupational Safety and Health Administration (OSHA) has regulations that companies must follow to ensure worker safety,” said Special Agent-in-Charge Steven Grell of the U.S. Department of Labor, Office of Inspector General, Dallas Region. “Steven and Adam Braithwaite disregarded OSHA regulations and provided false documentation to OSHA to make it appear as if all safety requirements were being followed, when in fact, they were not. Their lack of adherence to OSHA regulations and indifference to their employees’ safety resulted in tragic consequences which impacted several families. We will continue to work with our law enforcement partners and OSHA to hold accountable those who jeopardize workers ’ safety and obstruct DOL agencies in carrying out their important missions.”
“The defendants in this case ignored health and safety protocols and knowingly put their employees and the public at risk by disregarding federal regulations,” said Acting Assistant Administrator Larry Starfield for the EPA’s Office of Enforcement and Compliance Assurance. “Today’s guilty pleas send a clear message that individuals who intentionally violate these laws will be held accountable.”
NRCS was in the business of cleaning railcars, including rail tanker cars. Tanker car cleaning often involved NRCS sending workers inside the cars’ tanks to scrape and remove various commodities, including gasoline, ethanol, petroleum by-products, pesticides, herbicides and food-grade products.
According to court documents, NRCS failed to implement worker safety standards and then tried to cover that up during an inspection by OSHA. In addition, the company mishandled hazardous wastes removed from rail tanker cars during the cleaning process. On April 14, 2015, two NRCS workers who were sent into a tanker car containing severely flammable residue were killed and another injured when the contents of the railcar they were cleaning ignited and exploded.
On various occasions prior to the explosion, OSHA officials conducted regulatory inspections during which they notified the principals of NRCS that NRCS was in violation of OSHA safety regulations concerning confined space entries. Rail tanker cars are “confined spaces” under the Occupational Safety and Health Act. After an inspection of NRCS, Steven Braithwaite entered into a written agreement on Feb. 5, 2015, where he represented that NRCS had been testing for benzene since July 2014. After OSHA returned to NRCS in March 2015 to conduct a follow-up inspection and was turned away by Steven Braithwaite, Adam Braithwaite submitted falsified documents to OSHA purporting to show that NRCS had been purchasing equipment to test the contents of railcars for benzene and had taken other required safety precautions. Adam Braithwaite also falsely testified under oath in an OSHA hearing that NRCS had been purchasing the benzene testing equipment.
Meanwhile, NRCS had been engaged to clean the railcar that ultimately exploded. On or about Jan. 27, 2015, NRCS received an inquiry from one of its customers about receiving and cleaning product residue from a rail tanker car. The inquiry included a Safety Data Sheet (SDS) for the product in the railcar, describing it as “natural gasoline,” also known as “petrol, casing head gasoline, CS ’s.” The SDS also stated that the flammability rating was “severe” at class “4” (the highest rating), that the natural gasoline would ignite at zero degrees Fahrenheit, and that it contained benzene, a “cancer hazard.” NRCS responded that it could handle the material in the railcar.
The tanker car was not tested for benzene levels. Nonetheless, NRCS sent two of its employees into the tanker car. Continuous monitoring for explosive levels of gases was not conducted. The two employees sent into tanker car began removing the remaining contents, which were hazardous for toxicity (benzene) and ignitability. On April 14, 2015, approximately one hour after the two employees were sent into the tanker car, its contents ignited and exploded, killing those two employees and injuring a third.
Stephen Michael Braithwaite was the President and majority owner of NRCS and was responsible for all phases of the business, including both environmental and worker safety issues. He pleaded guilty to two counts of violating worker safety standards that resulted in the workers’ deaths, and knowingly endangering others by violating RCRA. Adam Thomas Braithwaite was the Vice President and a minority owner of NRCS and also handled both environmental and worker safety issues, among others. He also pleaded guilty to two counts of violating worker safety standards that resulted in the workers’ deaths, to two counts of falsification of records in a federal investigation, and to committing perjury. NRCS pleaded guilty to all 21 of the counts it was charged with in the indictment.
The defendants are scheduled to be sentenced on Oct.25. Steven Braithwaite faces a maximum penalty of 15 years in prison and a fine of the greater of $750,000 or twice the gain or profit caused by the offense. Adam Braithwaite faces a maximum penalty of 20 years in prison and a fine of the greater of $1,250,000 or twice the gain or profit caused by the offense and NRCS faces a maximum penalty of five years’ probation and a fine of the greater of $9,500,000 or twice the gain or profit caused by the offense. A federal district court judge will determine the sentences after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by U.S. EPA’s Criminal Investigation Division and the U.S. Department of Labor’s Office of Inspector General. Senior Counsel Krishna S. Dighe of the Department of Justice, Environmental Crimes Section, and Assistant U.S. Attorney Donald J. Kleine of the District of Nebraska are prosecuting the case.
Michigan Man Sentenced to Federal Prison for Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Rafael Starks, 36, of Michigan, was sentenced today to 21 months in prison for aiding and abetting the distribution of heroin.
According to court documents and statements made in court, Starks admitted that on August 1, 2018, he and another individual sold heroin to a confidential informant in the 1100 block of 9th Avenue in Huntington.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Cabell County Sheriff’s Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie S. Taylor handled 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. 3:18-cr-00249.
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Member of 36th Street Bang Squad Gang Sentenced for Attempted Murder and Multiple ShootingsRead the Press Release
NEWPORT NEWS, Va. – A Hampton man was sentenced on Friday to 30 years in prison for his role in a gang-related racketeering conspiracy, murder, and attempted murder.
According to court documents and evidence presented at trial, Ryan Taybron, 24, along with members of the 36th Street Bang Squad gang, were involved in multiple violent crimes in Hampton and Newport News between 2015 and 2017. On June 5, 2015, Taybron and four of his fellow gang members gathered at his Hampton home and discussed killing a rival gang member who was suspected of murdering a 36th Street Bang Squad member two days prior. Taybron provided a handgun to one of the gang members when the gang member left to find the rival. Once at the location, other 36th Street members and associates joined the group and followed a Hampton City school bus in two vehicles, waiting for their target to get off at a stop. When the target exited the bus, the co-defendants and associated gang members chased him into an apartment complex. With Taybron’s encouragement, the gang members carried loaded firearms and planned to kill the target if he was found, which he was not.
Throughout the conspiracy, Taybron actively used social media to taunt rival gangs and make threats of violence towards anyone who would disrespect the 36th Street Bang Squad. On September 1, 2015, Taybron provided a pistol-grip shotgun to a fellow gang member and had two gang members shoot a residence in Newport News because the female resident had disrespected the gang. The house was struck by multiple gun shots. After the shooting, the gang members returned the firearm to Taybron. On January 2, 2017, alongside a fellow gang member, Taybron verbally provoked and engaged in a shoot-out with rival gang members who were standing outside a convenience store in downtown Newport News.
On December 10, 2019, after a seven-week jury trial, Taybron was convicted of racketeering conspiracy, attempted murder in aid of racketeering activity, discharge of a firearm in furtherance of a crime of violence, conspiracy to distribute and possess with intent to distribute controlled substances, and possession of a firearm in furtherance of a drug trafficking crime.
Co-defendant Martin L. Hunt, 24, of Newport News, was sentenced to multiple life sentences for his role in the conspiracy on May 6. Co-defendant Deshaun Richardson, 25, of Newport News, was sentenced to 17 years for his role in the conspiracy on June 5. Co-defendant Eric Nixon, 25, of Hampton, was sentenced to 30 years in prison for his role in the conspiracy on June 28. Co-defendant Xavier Greene, 26, of Newport News, was sentenced to four life sentences for his role in the conspiracy on July 2.
Two additional co-defendants were convicted by a federal jury in the same trial for their roles in the racketeering conspiracy. Those co-defendants currently are scheduled for sentencing through August 2.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Charlie J. Patterson, Special Agent in Charge of the ATF’s Washington Field Division; Steve R. Drew, Chief of Newport News Police; Kenneth Mark Talbot, Chief of Hampton Police; and Anton A. Bell, Commonwealth Attorney for the City of Hampton, made the announcement after sentencing by Chief U.S. District Judge Mark S. Davis.
Assistant U.S. Attorney Brian Samuels, former Assistant U.S. Attorney Howard J. Zlotnick, and Special Assistant U.S. Attorney Amy E. Cross from the Eastern District of Virginia, and Trial Attorney Chad McHenry from the Justice Department’s Organized Crime and Gang Section, prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-52.
Long Island Resident Pleads Guilty to Multimillion-Dollar Elder Fraud SchemeRead the Press Release
A Long Island woman pleaded guilty today to participating in a scheme to mail fraudulent prize notices that led recipients, many of whom were elderly and vulnerable, to believe that they could claim large cash prizes in exchange for a modest fee. None of the victims who submitted fees, which in total exceeded $30 million, received a substantial cash prize.
According to court documents, Lorraine Chalavoutis, 64, of Greenlawn, New York, conspired to mail fraudulent prize notices to thousands of victims throughout the United States between December 2010 and July 2016. The mailings appeared to be personally addressed to thousands of individuals whose names were on consumer lists obtained by Chalavoutis and her primary co-conspirators, Shaun Sullivan and Tully Lovisa. Chalavoutis created various shell companies for the purported senders of the mailings, and hid her co-conspirators’ involvement in the business by using straw owners. Lovisa and Sullivan both pleaded guilty to conspiracy to commit mail fraud and are awaiting sentencing. In separate cases, several other defendants have also pleaded guilty to conspiracy to commit mail fraud in connection with the scheme.
“Those who knowingly facilitate fraud schemes, including individuals who play administrative roles in setting up and maintaining the criminal operations, bear responsibility for the harm caused to victims,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Department of Justice is committed to protecting elderly and vulnerable Americans and to prosecuting individuals who perpetrate and knowingly enable such schemes.”
“With today’s plea, Chalavoutis has admitted her role in a nefarious and fraudulent scheme to enrich herself by tricking elderly and vulnerable victims into believing they had won a cash prize that they could collect after paying her modest fees,” said Acting U.S. Attorney Jacquelyn M. Kasulis for the Eastern District of New York. “Protecting the community from those who commit fraud to deliberately prey on the false hopes of the vulnerable remains a priority of this office and the Department of Justice.”
“Today’s plea is an example of the coordinated efforts of law enforcement to bring those to justice who prey on vulnerable adults through the distribution of bogus solicitations, luring the unsuspecting ‘prize winner’ to send money in an effort to steal not only their money, but in many cases their independence,” said Inspector-in-Charge Philip R. Bartlett of the U.S. Postal Inspection Service, New York Division.
Chalavoutis pleaded guilty to conspiracy to commit mail fraud before U.S. District Judge Joanna Seybert. She is scheduled to be sentenced on Jan. 18, 2022, and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Postal Inspection Service investigated the case. Trial Attorneys Daniel Zytnick and Timothy Finley of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Charles P. Kelly of the U.S. Attorney’s Office for the Eastern District of New York are prosecuting the case.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Eastern District of New York, visit its website at https://www.justice.gov/usao-edny.
Long Island Defendant Pleads Guilty to Multi-Million Dollar Elder Fraud SchemeRead the Press Release
Earlier today, in federal court in Central Islip, Lorraine Chalavoutis pleaded guilty before United States District Judge Joanna Seybert to conspiracy to commit mail fraud by participating in a scheme to mail fraudulent prize notices that induced recipients, many of whom were elderly and vulnerable, to believe that they could claim large cash prizes in exchange for a modest fee. None of the victims who submitted fees, which in total exceeded $30 million, received a substantial cash prize. When sentenced, Chalavoutis faces up to 20 years in prison, as well as forfeiture and a fine.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, Brian M. Boynton, Acting Assistant Attorney General for the Justice Department’s Civil Division, and Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS), announced the guilty plea.
“With today’s plea, Chalavoutis has admitted her role in a nefarious and fraudulent scheme to enrich herself by tricking elderly and vulnerable victims into believing they had won a cash prize that they could collect after paying her modest fees,” stated Acting United States Attorney Kasulis. “Protecting the community from those who commit fraud to deliberately prey on the false hopes of the vulnerable remains a priority of this Office and the Department of Justice.”
“Chalavoutis set up and ran the administrative and financial operations that allowed this fraud scheme to work,” stated Acting Assistant Attorney General Boynton. “The Department of Justice is committed to protecting elderly and vulnerable Americans and to prosecuting those who defraud them.”
“Today’s plea is an example of the coordinated efforts of law enforcement to bring those to justice who prey on vulnerable adults through the distribution of bogus solicitations, luring the unsuspecting ‘prize winner’ to send money in an effort to steal not only their money, but in many cases their independence,” stated USPIS Inspector-in-Charge Bartlett.
Between December 2010 and July 2016, Chalavoutis conspired to mail fraudulent prize notices to thousands of victims throughout the United States. The mailings appeared to be personally addressed to thousands of individuals whose names were on consumer lists obtained by Chalavoutis and her primary co-conspirators, Shaun Sullivan and Tully Lovisa. Chalavoutis created various shell companies for the purported senders of the mailings and hid her co-conspirators’ involvement in the business by using straw owners. Lovisa and Sullivan previously pleaded guilty to conspiracy to commit mail fraud and are awaiting sentencing. In separate cases, several other defendants have also pleaded guilty to conspiracy to commit mail fraud in connection with the scheme.
The government’s case is being prosecuted by Assistant United States Attorney Charles P. Kelly and Trial Attorneys Daniel Zytnick and Timothy Finley of the Justice Department’s Consumer Protection Branch. Assistant United States Attorney Tanisha R. Payne of the Office’s Civil Division is in charge of forfeiture matters.
The Defendant:
LORRAINE CHALAVOUTIS
Age: 64
Greenlawn, New YorkE.D.N.Y. Docket No. 18-CR-349 (JS)
Leicester Woman and Man Charged in Superseding Indictment in COVID-19 Pandemic SchemeRead the Press Release
BOSTON – A Leicester woman and man were charged in a superseding indictment by a federal grand jury in Worcester in connection with their alleged involvement in a pandemic unemployment fraud scheme.
The superseding indictment added one count of conspiracy to commit wire fraud against Destinee Snay, 19, who was arrested today. In April 2021 co-defendant William Cordor, 26, was indicted on one count of conspiracy to commit wire fraud, four counts of wire fraud and four counts of aggravated identity theft. Cordor was previously arrested by criminal complaint.
According to the indictment, from about June 2020 to about October 2020, Cordor and Snay conspired with others to file false and fraudulent claims for unemployment assistance in multiple states, including Nevada, using stolen identities and transfer the payments into prepaid debit card accounts they obtained. It is alleged that on Aug. 18, 2020, Cordor was encountered by police in connection with a domestic violence incident and found in possession of approximately 21 prepaid debit cards in approximately 13 different names. In addition, evidence related to this scheme was allegedly found on Cordor’s computer and cell phone.
Cordor also allegedly engaged with others in a second wire fraud scheme that involved using stolen identities to fraudulently apply for COVID-19 Economic Injury Disaster loans from the SBA and similarly deposited the loans into prepaid debit card accounts.
Charging documents allege that in May 2020 Cordor admitted to federal agents that he had fraudulently obtained unemployment benefits from the Commonwealth of Massachusetts. That same day, Cordor agreed to surrender to federal authorities the balance of $79,000 in his bank account that were proceeds of his unemployment fraud scheme in Massachusetts. This occurred before Cordor is alleged to have filed the fraudulent unemployment claim with Nevada in July 2020.
The charges of conspiracy to commit wire fraud and wire fraud provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison in addition to any other sentenced imposed, up to one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Michael Mikulka, Special Agent in Charge of Department of Labor, Office of Inspector General, Office of Investigations; and Frederick J. Regan, Special Agent in Charge of U.S. Secret Service, Boston Field Office made the announcement today. Valuable assistance in the case was provided by the Leicester and Marlboro Police Departments. Assistant U.S. Attorney John T. Mulcahy of Mendell’s Worcester Branch Office is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Justice Department and Federal Maritime Commission Sign Memorandum of Understanding to Support Interagency CollaborationRead the Press Release
The Department of Justice’s Antitrust Division and the Federal Maritime Commission (FMC) have signed the first interagency Memorandum of Understanding (MOU) to foster cooperation and communication between the agencies to enhance competition in the maritime industry. Acting Assistant Attorney General Richard A. Powers and FMC Chairman Daniel Maffei signed the MOU between the Antitrust Division and the FMC effective this afternoon following Friday’s announcement of the Executive Order on Promoting Competition in the American Economy.
“Collaboration between the Antitrust Division and the FMC is important to ensuring healthy competition in the maritime industry,” said Acting Assistant Attorney General Powers. “Our partnership with the FMC is one of the many ways in which the Antitrust Division is prepared to play its role in achieving the competition objectives of the President’s Competition Executive Order.”
“The Federal Maritime Commission has an important enforcement role as an economic regulator of a vital industry,” said Chairman Maffei. “As such, we will continually assess how the agency can improve its capacity to protect the integrity of the marketplace. This memorandum between the Commission and the Department of Justice supplements and strengthens the FMC’s ability to detect, address, and pursue violations of the law or anticompetitive behavior by those we regulate.”
Key provisions of the MOU facilitate communication and cooperation between the agencies. In particular, the MOU establishes a framework for the Antitrust Division and the FMC to continue regular discussions and review law enforcement and regulatory matters affecting competition in the maritime industry. The MOU includes provisions to establish periodic meetings among the respective agencies’ officials. The MOU also provides for the exchange of information and expertise that may be relevant and useful to the agencies’ oversight and enforcement responsibilities, as appropriate and consistent with applicable legal and confidentiality restrictions.
Justice Department and Board of Elections of Oneida County, New York, Reach Agreement under National Voter Registration Act and Help America Vote ActRead the Press Release
The Justice Department announced today that it has entered into a proposed consent decree to settle a voting rights lawsuit with the Board of Elections of Oneida County, New York.
The proposed consent decree was filed in the U.S. District Court for the Northern District of New York in conjunction with a lawsuit brought by the Justice Department. The Justice Department’s complaint alleges that, before the November 2020 federal general election, the Oneida County Board of Elections failed to process approximately 2,400 timely-submitted voter registration applications completed through state motor vehicle offices and failed to ensure that voter registration applicants received timely notice of the disposition of their applications, in violation of Section 8 of the National Voter Registration Act (NVRA). The complaint also alleges that the State violated Section 302 of the Help America Vote Act (HAVA) by summarily rejecting nearly 1,800 provisional ballots cast by Oneida County voters in the November 2020 federal election without verifying the voters’ eligibility and without counting those provisional ballots cast by eligible voters.
The Justice Department gave notice to the Oneida County Board of Elections of its intent to bring suit under the NVRA and HAVA on March 23, and the parties worked collaboratively to achieve this agreement. The parties’ consent decree, which must still be approved by the court, provides that the Oneida County Board of Elections will develop and implement uniform and nondiscriminatory policies and procedures to ensure that election officials review and process all timely submitted voter registration applications in accordance with the NVRA. In addition, the board will train all poll officials and other election personnel regarding the provisional balloting requirements of HAVA. Finally, the board will provide periodic reports to the Justice Department regarding compliance with the proposed consent decree.
“We will continue using critical federal voting rights laws to help ensure that eligible voters enjoy access to the ballot box,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The National Voter Registration Act requires states to ensure that voter registration applications submitted before the deadline for federal elections are timely processed, and that qualified voters are promptly included on voter rolls for federal elections. The Help America Voter Act ensures that registered voters who have been left off voting lists can cast provisional ballots that will be promptly verified and counted if the voters are found to be eligible. I am pleased that the Oneida County Board of Elections has worked with the Department of Justice and agreed to measures that will protect these vital rights and establish safeguards to ensure compliance with the law in future federal elections.”
“We join the Civil Rights Division in bringing this important lawsuit under the National Voter Registration Act and the Help America Vote Act, and appreciate that Oneida County has worked with the Justice Department to ensure that all Oneida County residents enjoy the voting rights and protections afforded to them,” said Acting U.S. Attorney Antoinette T. Bacon of the Northern District of New York.
More information about the National Voter Registration Act, the Help America Vote Act and other federal voting rights laws is available on the Department of Justice website at https:www.justice.gov/crt/voting-section.
Justice Department Statement on Law Enforcement Assistance to the Haitian GovernmentRead the Press Release
The U.S. Department of Justice today released the following statement from spokesman Anthony Coley on department efforts to provide law enforcement assistance to the people and Government of Haiti:
“At the request of the Haitian government, the Department of Justice, along with its U.S. government partners, is assisting the Haitian National Police in the investigation of the assassination of Haitian President Jovenel Moïse.
“An initial assessment has been conducted in Haiti by senior U.S. officials. The department will continue to support the Haitian government in its review of the facts and circumstances surrounding this heinous attack.
“The department will also investigate whether there were any violations of U.S. criminal law in connection with this matter.”
Jury Convicts Hampton Return Preparer of Tax FraudRead the Press Release
NEWPORT NEWS, Va. – A federal jury convicted a Hampton man Friday of aiding and assisting in the preparation of false tax returns, theft of government funds, and failing to file federal income tax returns.
According to court records and evidence presented at trial, from at least 2013 through 2019, Karl Burden-El Bey prepared false tax returns for clients. On his clients’ returns, Burden-El Bey claimed false dependents, residential energy credits, gifts to charity, deductions, and child and dependent care expenses in order to inflate refunds obtained from the Internal Revenue Service (IRS). Burden-El Bey also stole $5,000 by directing a portion of his client’s refunds into his personal bank account. As to his own taxes, Burden-El Bey did not file individual tax returns for 2013 through 2017 with the IRS, despite being legally obligated to do so.
“The evidence at trial demonstrated that the defendant’s criminal conduct in this case spanned several years and included assisting in the preparation of false tax returns, stealing government funds, and failing to file personal federal income tax returns even though he held a trusted position as a tax preparer,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Our Office expresses its appreciation to the trial team, and we are grateful for the jury’s verdict, which holds the defendant accountable for betraying the public’s trust and unlawfully enriching himself through this multi-year fraud scheme.”
Burden-El Bey faces a statutory maximum sentence of ten years in prison for theft of government funds, three years in prison for each count of aiding and assisting in the preparation of a false tax return, and one year in prison for each count of failing to file a tax return when sentenced on December 7. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; General Stuart M. Goldberg, Acting Deputy Assistant Attorney of the Department of Justice’s Tax Division; and Darrell J. Waldon, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after U.S. District Judge David J. Novak accepted the verdict.
Assistant U.S. Attorneys Lisa McKeel and Brian Samuels and Trial Attorneys Grace Albinson and Francesca Bartolomey of the Tax Division are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:20-cr-17.
Jamestown Man Pleads Guilty to Enticement of MinorRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Richard LaFrance, 35, of Jamestown, NY, pleaded guilty, before U.S. District Judge John L. Sinatra, Jr., to enticement of a minor, which carries a minimum penalty of 10 years in prison, a maximum of life, and a $250,000.
Assistant U.S. Attorney Douglas A. C. Penrose, who is handling the case, stated that the defendant, who was 34 years-old at the time, met a 14-year-old minor victim in April of 2019, and began communicating with her via email and text message. The communications between LaFrance and the Minor Victim were sexually explicit and included the defendant requesting that the Minor Victim send him naked pictures. In addition, LaFrance met up with the Minor Victim on at least two occasions and engaged in sexual intercourse.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and the Chautauqua County Sherriff’s Office, under the direction of Sheriff James B. Quattrone.
Sentencing is scheduled for November 9, 2021, at 4:00 p.m. before Judge Sinatra.
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Jackson Man Sentenced to Ten Years in Prison for Illegally Possessing a GunRead the Press Release
Jackson, Miss. – A Jackson man was sentenced to 120 months in federal prison for possessing a firearm as a convicted felon, announced Acting U.S. Attorney Darren J. LaMarca and Michelle Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
According to court documents, Travaris Devon Bishop, 36, was arrested by the Jackson Police Department on January 9, 2020, with a firearm in his possession. The arrest was made during an investigation into criminal activity in a local neighborhood. Bishop had two previous convictions for house burglary and was prohibited from possessing a firearm.
On August 11, 2021, Bishop was charged in a federal criminal indictment with being a convicted felon in possession of a firearm. He pled guilty on July 12, 2021.
The Federal Bureau of Investigation investigated the case.
Assistant U.S. Attorney Lynn Murray prosecuted the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Huntington Man Sentenced for Federal Crack Cocaine ChargeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man caught with crack cocaine last year in his residence was sentenced today to 78 months in federal prison. Daniel Legette, 45, previously pleaded guilty to possession with intent to distribute cocaine base, also known as “crack.” Legette was on supervised release at the time of the offense for a prior federal drug conviction and was sentenced to an additional 12 months and one day in federal prison after his release was revoked. The sentences were ordered to run consecutively for a total sentence of 90 months and one day.
According to court documents, officers with the Huntington Police Department executed a search warrant on November 12, 2020 at Legette’s residence located on Oakland Avenue in Huntington. During the search, officers seized approximately 100 individually wrapped bags of crack cocaine totaling approximately 23 grams. Officers also seized additional quantities of methamphetamine, heroin and a rifle. Legette admitted that he possessed and intended to distribute all of the drugs seized by police.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Huntington Police Department.
United States District Judge Robert C. Chambers imposed the sentences. Assistant United States Attorney Joseph F. Adams handled 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. 3:21-cr-00007.
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Huntington Man Sentenced for Child Pornography OffenseRead the Press Release
The United States Attorney’s Office for the District of Vermont stated that Louis Hamlin II, 77, of Huntington, Vermont, was sentenced on July 12, 2021, in United States District Court in Rutland, Vermont, to serve 72 months in prison after his guilty plea to one count of knowingly producing with intent to distribute child pornography that is an adapted or morphed depiction of an identifiable minor. Chief U.S. District Judge Geoffrey W. Crawford also ordered Hamlin to serve a five (5) year term of supervised release and to pay a $100 special assessment.
According to court records and proceedings, in February 2019, the National Center for Missing and Exploited Children (NCMEC) received a Cybertip that someone at a specific IP address in Vermont had uploaded or viewed an image of child pornography. NCMEC referred the Cybertip to the Vermont Internet Crimes Against Children Task Force (ICAC) for investigation. Thereafter, the ICAC and special agents with Homeland Security Investigations identified the user of the IP address to be Louis Hamlin II. Law enforcement obtained and executed a search warrant at Hamlin’s residence in Huntington, Vermont and discovered images of child pornography on his computer.
As part of his plea agreement, Hamlin admitted that he used a computer that was connected to the Internet, a facility of interstate and foreign commerce, to upload and distribute an image file depicting an identifiable minor that had been modified to make it appear that the child was engaging in sexually explicit conduct. Specifically, Hamlin admitted to taking an image of an identifiable child and cropping and modifying it so particular aspects of the image were highlighted. In doing so, the image created by Hamlin appeared to show the child engaged in sexually explicit conduct.
Acting United States Attorney Jonathan A. Ophardt commended the efforts of the Vermont Internet Crimes Against Children Task Force and Homeland Security Investigations in the investigation and prosecution of Hamlin. Assistant U.S. Attorney Barbara A. Masterson handled the prosecution of Hamlin. Assistant Federal Public Defender David L. McColgin represented Hamlin.
Acting U.S. Attorney Ophardt noted that this case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and Child Exploitation Obscenity Section, Criminal Division (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Huntington Man Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. -- Frederick Coleman, 32, of Huntington, pleaded guilty today to a federal drug crime.
According to court documents and statements made in court, law enforcement officers executed a search warrant at a residence in Huntington on February 13, 2020. Inside one of the bedrooms, officers recovered approximately 2.31 grams of heroin and approximately 20.99 grams of cocaine. Coleman admitted that he possessed the heroin and intended to distribute it.
Coleman pleaded guilty to possession with intent to distribute heroin and faces up to 20 years in prison when he is sentenced on October 18, 2021.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Huntington Violent Crime and Drug Task Force.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Nick Miller 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. 3:20-cr-00171.
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Huntington Man Pleads Guilty to Escape ChargeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man pleaded guilty today to an escape charge. Jeremy Midkiff, 39, pleaded guilty to walking away from a halfway house last year.
Midkiff admitted that in October 2020, he left Dismas Charities, Inc., a Bureau of Prisons residential reentry facility, without permission and did not return. He had been confined at Dismas because of a previous federal drug trafficking conviction.
Midkiff faces up to five years imprisonment when sentenced on November 10, 2020.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the U.S. Marshals Service.
Senior United States District Robert C. Chambers presided over the hearing. Assistant United States Attorney Negar Kordestani 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. 2:21-cr-00083.
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Gates Mills Man Pleads Guilty to Role in Bookmaking ConspiracyRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that William Mangelluzzi, 48, of Gates Mills, Ohio, pleaded guilty in federal court today to a Bill of Information charging him for his role in a conspiracy to operate an illegal gambling business and attempted income tax evasion.
According to court documents, Mangelluzzi, together with Thomas Reed, 48, of Kirtland Hills, Ohio, and others, owned and operated an illegal gambling business in the Northern District of Ohio. Court records state that Mangelluzzi, a former gambling client of Reed, conspired together with Reed and others in order to conceal the proceeds of the gambling business and make them appear legitimate. In addition, Mangelluzzi deposited large sums of cash into bank accounts and conducted other transactions with Reed and others in order to evade income tax liability.
Reed previously pleaded guilty to a Bill of Information for his role in the conspiracy.
Mangelluzzi’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
This case was investigated by the United States Secret Service and the Internal Revenue Service Criminal Investigations. This case is being prosecuted by Criminal Chief Robert Bulford and Assistant U.S. Attorney Alejandro Abreu.
Former Labor Union President Sentenced for Embezzling Union FundsRead the Press Release
A former labor union president was sentenced in federal court for embezzling close to $20,000 from the union, announced Acting U.S. Attorney Clint Johnson.
U.S. District Judge Claire V. Eagan sentenced Thomas Jerome Burkhart, Jr., 59, of Sapulpa, to three years of probation and ordered him to pay restitution to the labor union in the amount of $19,900. Burkhart pleaded guilty on April 8, 2021, admitting to embezzlement and theft of labor union assets.
“Thomas Burkhart Jr. was trusted by local union members as their president but instead abused his position to steal nearly $20,000 for his own personal use,” said Acting U.S. Attorney Clint Johnson. “The defendant is now a convicted felon and will pay back Steelworkers Local 145 for the funds he embezzled. My office will continue to work with the Office of Labor-Management Standards to ensure corrupt union leaders like Burkhart are held accountable for their crimes.”
The Office of Labor-Management Standards (OLMS) opened an investigation after an internal audit by Steelworkers Local 145 revealed a loss of union funds. OLMS found that, from July 2018 to August 2019, Burkhart embezzled union funds by writing approximately 43 unauthorized checks to himself, resulting in a loss of $19,900 to the local union while he served as president of Steelworkers Local 145, located in Henryetta, Oklahoma, from 2014 through 2019.
“While the vast majority of union officials do their work diligently and without incident, OLMS will continue to work with unions to hold accountable anyone that unlawfully exploits their union position to enrich themselves without regard to the best interests of union members,” said Office of Labor-Management Standards District Director Michelle Hussar in Dallas, Texas. “This sentencing and restitution order sends a clear message that there are consequences for individuals who breach the trust placed in them to be good stewards of union funds.”
The U.S. Department of Labor, Office of Labor-Management Standards conducted the investigation. Assistant U.S. Attorneys Jeffrey A. Gallant and David D. Whipple prosecuted the case.
Florida Department of Children and Families Agrees to Pay $17.5 Million to Resolve False Claims Act Liability in Connection with SNAP Quality ControlRead the Press Release
The Florida Department of Children and Families (FDCF) has agreed to pay to the United States $17,500,000 to resolve allegations that it violated the False Claims Act in its administration of the U.S. Department of Agriculture’s (USDA) Supplemental Nutrition Assistance Program (SNAP). Until 2008, SNAP was known as the Food Stamp Program.
“SNAP provides important benefits to help families in need,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “This settlement is an example of the department’s commitment to ensuring that taxpayer funds are spent appropriately so that the public can have confidence in the integrity of vital programs like SNAP.”
“While it is shocking these claims where submitted by the Florida Department of Children and Families, the state agency entrusted with assisting vulnerable and needy individuals, I commend the agency for correcting its conduct, cooperating with our investigation, and resolving its liability for its past actions,” said Acting U.S. Attorney Joseph H. Harrington for the Eastern District of Washington. “Together with our partners in the Justice Department’s Civil Division and the USDA, we will continue to investigate and hold accountable those who misuse and wrongfully obtain SNAP funding.”
“We appreciate the commitment and investigative assistance provided by our partners at the Department of Justice’s Civil Division and the U.S. Attorney’s Office throughout this multi-state investigation,” said Special Agent in Charge Bethanne M. Dinkins of the USDA, Office of Inspector General (OIG). “We also wish to note the technical assistance provided by our colleagues in the Office of Audit at OIG. During the investigation, conducted by OIG’s Northeast Regional Office, we worked together to address the concerns of employees of multiple states and others who alleged that the integrity of the SNAP quality control process was weakened by third-party consultants and/or the implementation of methods that injected bias into the quality control process. These concerned individuals reported that cases were not being treated in a consistent manner, and that certain advice from consultants and/or the implementation of certain methods resulted in identified errors being diminished rather than used to improve eligibility determinations. The settlements reached to date send a strong message regarding the government’s commitment to work across agency lines to protect the integrity of SNAP.”
Under SNAP, USDA provides eligible low-income individuals and families with financial assistance to buy nutritious food. Since 2010, SNAP has served on average more than 45 million Americans per month and provided more than $71 billion annually.
Although the federal government funds SNAP benefits, it relies on the states to determine whether applicants are eligible for benefits, to administer those benefits and to have appropriate quality control processes in place. To ensure that these quality control processes serve as an accurate check on eligibility decisions, USDA requires that these processes be free from bias and accurately report states’ error rates in awarding benefits.
The USDA reimburses states for a portion of their administrative expenses in administering SNAP, including expenses for providing quality control. It also pays performance bonuses to states that report the lowest and the most improved error rates each year, and can impose monetary sanctions on states with high error rates that do not show improvement.
The settlement announced today resolves allegations that beginning in 2010, FDCF implemented improper policies and practices to reduce its SNAP error rate. Specifically, the United States alleged FDCF injected bias into its quality control process that resulted in FDCF submitting false quality control data and information to USDA, for which it received unentitled performance bonuses for fiscal years 2011 and 2012. In addition to its payment of $17.5 million, FDCF has also agreed to forego payment of an additional $14.7 million in unpaid bonuses that USDA awarded for fiscal years 2013 and 2014.
The United States has previously settled allegations of improper manipulation of SNAP quality control findings with state agencies in Virginia, Wisconsin, Texas, Louisiana, Alaska and Mississippi, as well as with Osnes Consulting and its owner, Julie Osnes, who the government alleged advised and encouraged many of these agencies to engage in such manipulations. Including this settlement, the United States has now recovered over $60 million in connection with this investigation of the SNAP program.
The settlement was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch (Fraud Section) and the U.S. Attorney’s Office for the Eastern District of Washington, with investigative support from the USDA-OIG. The investigation arose out of a nationwide audit of SNAP Quality Control processes by the USDA-OIG.
The matter was handled by Senior Trial Counsel Don Williamson of the Civil Division and Assistant U.S. Attorneys Dan Fruchter and Tyler Tornabene of the Eastern District of Washington.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Federal agent charged with aiding drug smugglingRead the Press Release
McALLEN, Texas – A Border Patrol (BP) agent has been arrested on allegations he attempted to aid and abet smuggling cocaine through a BP checkpoint, announced Acting U.S. Attorney Jennifer B. Lowery.
Oberlin Cortez Pena Jr., 22, La Joya, is set to make his appearance before U.S. Magistrate Judge Nadia S. Medrano at 9 a.m. today.
Authorities took him into custody July 9 upon the filing of a criminal complaint. The charges allege that on two separate occasions, Pena accepted $1,000 in exchange for helping a vehicle with at least five kilograms of cocaine through the Falfurrias checkpoint. Pena allegedly utilized his knowledge as a BP agent in acting as a scout and providing information about the inspection lanes and which one to utilize.
According to the complaint, he also gave detailed instructions on how to conceal the drugs and tactics to employ in order to distract the K-9 unit at the checkpoint.
If convicted, he faces a minimum of 10 years up to life in federal prison as well as a possible $10 million maximum fine.
Department of Homeland Security - Office of the Inspector General conducted the investigation with assistance from Customs and Border Protection - Office of Professional Responsibility and BP. Assistant U.S. Attorneys Jongwoo Chung and John Pearson are prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Eight Defendants Sentenced in Counterfeit Check CaseRead the Press Release
ALBANY, Ga. – Eight defendants who pleaded guilty for their role in an elaborate counterfeit check cashing scheme have been sentenced by a federal judge for their crimes.
According to court documents, Fredner “Fresh” Reserve was the ringleader of a small organization of individuals who deposited counterfeit checks provided by Reserve into various banks between August and September 2019, sometimes immediately withdrawing cash. The checks were often deposited via ATM. The scheme was discovered when the vice president of Southwest Georgia Bank (SWGB) contacted the U.S. Secret Service on September 6, 2019, regarding fraudulent checks that were being deposited at SWGB. That same day, the investigating Secret Service Special Agent met with a Moultrie Police Department (PD) investigator to discuss whether a similar investigation involving Ameris Bank was part of the same conspiracy.
On September 19, 2019, another SWGB bank employee contacted the Moultrie PD after seeing a customer, co-defendant Khadijah Bailey, who had deposited fraudulent checks into her account at the bank attempting to withdraw cash. The responding officers were able to apprehend Bailey, Reserve and co-defendant Deborah Johnson, who was working with Reserve in the scheme. A search of Johnson’s car revealed additional fraudulent checks and other evidence of the scheme. Co-defendant Erica Langley had earlier been arrested after depositing a fraudulent check and withdrawing money from her SWGB account but could only identify Reserve who had recruited her to participate in the scheme by the name “Fresh.” Working with local law enforcement, Secret Service agents tied the fraud scheme to SWGB and Ameris branches in several South Georgia cities. The investigation uncovered that co-defendants Bailey, Langley, Demetrius Collins, Jerry Lynn King, Jerra Carter and Frank Thomas, as well as other uncharged individuals, would either open or use existing bank accounts to deposit fraudulent checks provided by Reserve and Johnson. Reserve admitted that he conspired with others to devise and execute a scheme to defraud financial institutions using fraudulent checks for a fraud loss between $40,000 and $95,000.
“The loss to these community banks would have been much greater if not for responsive bank employees who reported the crime and the quick investigative work by the U.S. Secret Service and the Moultrie Police Department,” said Acting U.S. Attorney Peter D. Leary. “Committing fraud against small businesses is not a victimless crime. People’s livelihoods can be severely damaged, and the harmed businesses can fail to recover. Our office will not hesitate to prosecute individuals caught deceiving people for profit.”
“This case is another example that clearly shows criminals are continuously looking for ways to steal from financial institutions. In this case, the community banks were violated when the fraudsters opened bank accounts for the sole purpose of committing fraud. The United States Secret Service, along with our state, local and federal law enforcement partners will continue to investigate, arrest and support the successful prosecution of the criminals who choose to commit this and other types of financial fraud in our community and around the nation,” said Clint Bush, Resident Agent in Charge, United States Secret Service, Albany, Georgia Resident Office.
“This particular check cashing scheme is an unusual case for Moultrie. This investigation exemplifies the outstanding cooperation that exists between our community and law enforcement that we are able to rapidly track, identify and shut this crime down, preventing even greater harm to our local banks and ultimately our community,” said Investigator Frank Newton, Moultrie Police Department.
Reserve and co-defendants were sentenced by U.S. District Judge Louis Sands to the following terms of imprisonment and ordered to collectively repay almost $20,000 in loses to the banks (their individual judgements are based on the attempted amount of theft):
Fredner “Fresh” Reserve, 34, of Lancaster, Pennsylvania, pleaded guilty to conspiracy to commit bank fraud and was sentenced to serve 31 months in prison to be followed by three years of supervised release on March 25, 2021;
Deborah Johnson, 29, of Philadelphia, Pennsylvania, pleaded guilty conspiracy to commit bank fraud and was sentenced to serve 24 months in prison to be followed by three years of supervised release on October 15, 2020;
Jerry Lynn King, 53, of Moultrie, pleaded guilty to conspiracy to commit bank fraud and was sentenced to serve 21 months in prison to be followed by three years of supervised release on January 28, 2021;
Frank Thomas, 24, of Moultrie, pleaded guilty to conspiracy to commit bank fraud and was sentenced to 18 months in prison to be followed by three years of supervised release on July 8, 2021;
Demetrius Collins, 48, of Moultrie, pleaded guilty to conspiracy to commit bank fraud and was sentenced to serve 12 months in prison to be followed by three years of supervised release on January 28, 2021;
Jerra Carter, 22, of Moultrie, pleaded guilty to conspiracy to commit bank fraud and was sentenced to serve eight months in prison to be followed by three years of supervised release on March 24, 2021;
Erica Langley, 37, of Moultrie, pleaded guilty to conspiracy to commit bank fraud and was sentenced to serve six months in prison to be followed by three years of supervised release on February 25, 2021; and,
Khadijah Bailey, 26, of Moultrie, pleaded guilty to conspiracy to commit bank fraud and was sentenced to serve six months in prison, 90 days of which is home confinement, to be followed by three years of supervised release on July 8, 2021.
The case was investigated by the U.S. Secret Service and the Moultrie Police Department.
Assistant U.S. Attorney Robert McCullers prosecuted the case for the Government.
Edisto Island Man who Livestreamed with Handgun before Violent Charleston Riots Sentenced to 24 Months in Federal PrisonRead the Press Release
Charleston, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Kelsey Donnel Jackson, 28, of Edisto Island, was sentenced to 24 months in federal prison after pleading guilty to maliciously damaging a police vehicle by means of fire during violent and destructive riots in downtown Charleston on May 30, 2020.
Evidence presented in court showed that, while traveling to the protests, Jackson streamed a video of himself on Facebook live in which he held a handgun, racked the slide on the handgun, and pointed the handgun at the screen of his phone. While holding the handgun on multiple occasions, Jackson is heard on the live stream making the following statements: “F*ck the police,” “let a cop run up and get done up,” “we’re liable to f*ck the police up right now,” and “you about to get hit” when he thought he was being pulled over by a police officer.
Evidence presented to the court further showed that Jackson travelled throughout the city, vandalizing businesses and public property, assaulting two civilians, and attempting to light a Charleston Police cruiser on fire.
Jackson is the third of six defendants to be sentenced on federal charges stemming from participation of actions including arson, inciting riots, and other civil disorder in Columbia and Charleston on May 30 and 31, 2020.
“While the United States Attorney’s Office will always protect the First Amendment rights of South Carolinians, we will not allow violence and destruction to go unpunished,” said Acting U.S. Attorney DeHart. “We stand committed with our local, state and federal partners to protect the citizens of South Carolina, and we commend the tremendous effort made by detectives and crime analysts from the Charleston Police Department to not only identify those responsible for the violence and destruction last summer but also to document evidence and quickly apprehend them. As was expressed in court, today’s sentencing will hopefully be a deterrent for violent agitators committing crimes like this in the future.”
“The Charleston Police Department once again applauds the successful resolution of this criminal case and the ongoing support displayed by the United States Attorney’s Office regarding this incident,” said Charleston Police Chief Luther Reynolds. “While the Charleston Police Department will always support our citizen’s right to peaceful protest, we will never condone violent or destructive acts that endanger our citizens or damage property. More work remains to be accomplished as we continue investigating and prosecuting those violent offenders responsible for the significant destruction of property, assault on our citizens and attack on our officers. We will not rest until justice is accomplished for all impacted by those criminal acts.”
United States District Judge Richard M. Gergel sentenced Jackson to 24 months imprisonment to be followed by 36 months of supervised release. There is no parole in the federal system.
The case was investigated by the FBI, ATF, Charleston Police Department, and South Carolina Law Enforcement Division (SLED). Numerous other local police departments and Solicitors’ Offices across the state have also assisted in the investigations of civil unrest in May 2020.
Assistant United States Attorneys Emily Limehouse and Nathan Williams prosecuted the case.
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Drug trafficker from Canada sent to prisonRead the Press Release
HOUSTON – A 51-year-old woman has been ordered to federal prison for conspiracy to possess with intent to distribute cocaine, announced Acting U.S. Attorney Jennifer B. Lowery.
Elizabeth K. Fisher pleaded guilty Jan. 11, 2020.
Today, U.S. District Judge Kenneth Hoyt ordered Fisher to serve an 84-month-term of imprisonment to be immediately followed by five years of supervised release. In handing down the sentence, Judge Hoyt noted the sentence should provide deterrence to those that traffic in controlled substances.
Fisher intended to come to Houston where she would receive shipments of cocaine to test and store before delivering it someone who would transport it Canada.
She first flew into the United States in April 2019. While she did not receive any drugs on that trip, she did rent a townhouse before returning to Calgary, Canada, April 30.
On May 12, 2019, Fisher returned to Houston and her rented residence. Less than a week later, she drove to a Home Depot where she met with an individual who got in her car and drove off while Fisher entered the store. Authorities later saw her talking on her phone as she exited the parking lot in her vehicle.
Law enforcement executed a traffic stop and found four duffle bags containing a total of 78 kilograms of cocaine.
Fisher has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration in Houston and Vancouver, Canada, and Homeland Security Investigations conducted the investigation along with law enforcement in Calgary. Assistant U.S. Attorney Robert Stabe prosecuted the case.
Decatur Man Sentenced to 27 Years in Prison for Child Sex CrimesRead the Press Release
URBANA, Ill. – Courtney Williams, 32, of the 3500 block of Plover Dr. in Decatur, Ill., was sentenced today to 324 months (27 years) in federal prison for child sexual exploitation offenses.
On March 11, 2021, Williams entered a plea of guilty to the indictment, which charged that for the time period between Jan. 17, 2020, and Jan. 25, 2020, Williams used the internet and a cell phone to entice a minor to engage in sexual activity that qualified as aggravated criminal sexual abuse.
According to court documents, Williams portrayed himself as a 17-year-old male while communicating online with a minor girl via Snapchat and text. As part of these communications, Williams solicited the girl to send him sexually explicit photos and to meet him to engage in sexual activity. Further, Williams lured the minor into his vehicle on the evening of Jan. 24, 2020, and took her to his residence where he gave her drugs which caused her to lose consciousness. While the minor girl was unconscious, Williams sexually assaulted her.
Williams has been in the custody of the U.S. Marshals since his arrest on Feb. 7, 2020.
Following Williams’s release from prison, he will be on federal supervised release for 10 years and will be required to register as a sex offender.
The charges were investigated by the Department of Homeland Security, Immigration and Customs Enforcement, and the Decatur Police Department. Assistant U.S. Attorney Elly M. Peirson represented the government in the prosecution.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Currency Exchange Manager Sentenced to One Year for Filing False Transaction Reports in Connection with Scheme to Defraud Philadelphia Wholesale Produce MarketRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Thomas Del Borrello, 42, of Sewell, NJ, was sentenced to one year in prison, two years of supervised release, and was ordered to pay a $5,000 fine by United States District Judge Cynthia M. Rufe for filing false currency reports in connection with a vast, multi-million dollar scheme to defraud the Philadelphia Wholesale Produce Market (Market) in South Philadelphia, perpetrated by the Market’s President and CEO Caesar DiCrecchio.
The defendant pleaded guilty to a Criminal Information in April 2021, charging him with filing false Currency Transaction Reports (CTRs) and failing to file CTRs for cash transactions in excess of $10,000. Del Borrello was a supervisor at United Check Cashing on South Broad Street in Philadelphia and, as such, was responsible for compliance with regulations governing cash transactions, including the preparation and filing of CTRs.
Del Borrello regularly cashed checks for Caesar DiCrecchio, who has pleaded guilty to defrauding the Market while serving as its President and CEO. As part of his guilty plea, DiCrecchio admitted regularly causing groups of checks to be delivered to, and cashed at, United Check Cashing. These checks were each made out for less than $10,000, but when cashed as a group generated in excess of $10,000 in United States currency. For these cash transactions in excess of $10,000, regulations require the currency exchange to file a CTR, recording the identity of the person who presented the transaction. Del Borrello caused the filing of false CTRs which hid DiCrecchio’s identity, or caused United Check Cashing to fail to file a CTR altogether. On some occasions, DiCrecchio directed Del Borrello to convert the proceeds of the checks into separate money orders which were used to pay the $14,167 monthly rent for DiCrecchio’s Stone Harbor house. Del Borrello’s corrupt actions permitted DiCrecchio to remain undetected while he perpetrated the $7 million fraud on the Market.
“Del Borrello, by his corrupt choices, prevented the ordinary operation of the anti-money laundering laws of the United States,” said Acting U.S. Attorney Williams. “In his position as a supervisor at a check cashing business, Del Borrello served at a key gateway in our economy. But rather than respect the law and his important role in the enforcement process, he helped DiCrecchio cover up a massive fraud. He deserves the sentence of imprisonment he received for his effort to defeat our anti-money laundering laws.”
“In repeatedly evading or falsifying the required CTRs, Thomas Del Borrello facilitated the continuation of a long-running, multimillion-dollar fraud scheme,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “He knew it was wrong and didn’t care, because he was making money off the whole deal. As today’s sentencing shows, such criminal actions have serious consequences.”
“The subject’s actions allowed millions of dollars to be siphoned from the Philadelphia Wholesale Produce Market, harming the local economy,” said Joleen D. Simpson, Acting Special Agent in Charge of IRS Criminal Investigation, Philadelphia Field Office. “The subject had a duty to prepare and file CTRs. As a direct result of Del Borrello’s dereliction of duties, an entity suffered lost revenues and federal tax laws were violated. IRS Criminal Investigation will always be ready to assist its law enforcement partners in investigating complex financial cases that cause economic damage to individuals and entities.”
The case was investigated by the Federal Bureau of Investigation’s Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation, and the Pennsylvania State Police – Bureau of Criminal Investigation, and is being prosecuted by Assistant United States Attorney Michael T. Donovan.
Convicted Felon Sentenced to 10 Years for Distribution of Marijuana and Using a Firearm During a Drug Trafficking CrimeRead the Press Release
Memphis, TN – Ronald Freeman, 39 has been sentenced to 120 months in federal prison for distribution of marijuana and using a firearm during a drug trafficking crime. Acting U.S. Attorney Joseph C. Murphy Jr., announced the sentence today.
According to information presented in court, between August 2020 and September 2020, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), conducted a criminal investigation into the drug trafficking activities of Ronald Freeman. This investigation was initiated through Operation LeGend, an initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement to fight violent crime. Operation LeGend was first launched on July 8, 202o in Kansas City, Missouri and announced in Memphis on August 6, 2020.
ATF Special Agents utilized a confidential informant to conduct approximately 7 controlled purchases resulting in receiving two firearms and narcotics from Freeman. Each transaction was audio and video-recorded and completed under ATF supervision.
On March 24, 2021, the defendant pled guilty.
On July 9, 2021, U.S. District Judge Sheryl H. Lipman sentenced Freeman to 120 months imprisonment to be followed by 5 years supervised release. There is no parole in the federal system.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Assistant U.S. Attorney Wendy K. Cornejo prosecuted this case on behalf of the government.
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Clarksburg man sentenced for firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Tee El Dodd, of Clarksburg, West Virginia, was sentenced today to 46 months of incarceration for a firearms charge, Acting U.S. Attorney Randolph J. Bernard announced.
Dodd, 34, pleaded guilty in December 2020 to one count of “Unlawful Possession of Firearm.” Dodd, a person prohibited from having a firearm because of a prior conviction, admitted to having a 9mm pistol in October 2019 in Doddridge County.
Assistant U.S. Attorney Sarah E. Wagner prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the West Virginia Division of Natural Resources Police investigated.
U.S. District Judge Thomas S. Kleeh presided.
Chicago Felon Sentenced to Federal Prison for Derecho FraudRead the Press Release
A Chicago felon who pretended to be a victim of the August 2020 derecho disaster in order to fraudulently obtain over $5,000 in FEMA disaster benefits was sentenced today to more than a year in federal prison. Tavonte Donnell Stewart, age 23, from Chicago, Illinois, received the prison term after a March 9, 2021, guilty plea to one count of Derecho Benefits Fraud.
On August 10, 2020, a severe storm, commonly known as a derecho, suddenly struck multiple counties in Iowa, Illinois, and Indiana in the middle of the COVID-19 pandemic. The derecho had long-duration winds over 100 miles per hour and caused an estimated total of $7.5 billion in damages across the affected states. The derecho caused long-lasting power outages and millions of acres of crops were destroyed. Cedar Rapids, Iowa, within the Northern District of Iowa, was particularly hard-hit from the derecho storm. In response, the Federal Emergency Management Agency (FEMA) declared a disaster, which allowed victims of the derecho storm to apply for and receive disaster benefits for losses not covered by insurance.
In a plea agreement, and at the sentencing hearing, Stewart admitted that, in October 2020, he applied for $5,927.40 in FEMA derecho disaster benefits on the false pretense that he was living in a Cedar Rapids residence at the time of the derecho storm. FEMA paid Stewart these benefits for alleged personal property damage and rental assistance. Stewart spent the funds on jewelry for his girlfriend and to purchase a duplicate identification card for himself from the Illinois Secretary of State.
Stewart also admitted that, around the same time, he had filed a similar fraudulent application for benefits intended victims of a disaster in California. Stewart was not a resident of either Iowa or California, but instead was at all times a resident of Chicago, Illinois. In fact, Stewart was on federal supervised release in the Northern District of Illinois following his conviction for Uttering Counterfeit Obligations or Securities and had notified his federal probation officer of his residences in the Chicago area around the time of the derecho storm.
Stewart was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Stewart was sentenced to 18 months’ imprisonment. He was ordered to make $5,927.40 in restitution to FEMA. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system. Stewart is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Timothy L. Vavricek and investigated by the Department of Homeland Security, Office of the Inspector General.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-114.
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Charleston Woman Sentenced to Prison for Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – A Charleston woman who took part in a conspiracy to distribute methamphetamine in 2019 was sentenced today to 10 months in federal prison and four years of supervised release. Kathryn Elizabeth Casto, 35, previously pleaded guilty to conspiracy to distribute 50 grams or more of methamphetamine.
According to court documents, Casto admitted that, between April and September of 2019, she conspired with multiple individuals to distribute methamphetamine. During the conspiracy, Casto repeatedly obtained quantities of methamphetamine which were transported from Akron, Ohio to various locations in West Virginia. Casto would in turn supply other drug dealers with methamphetamine that would be sold in the Huntington and Charleston areas. Casto admitted that she was aware some of her customers intended to distribute the methamphetamine she provided.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the joint investigation conducted by the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Violent Crime and Drug Task Force West, the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the Drug Enforcement Administration (DEA) Task Force, the Beckley/Raleigh County Drug and Violent Crime Unit, the United States Marshals Service, the Cabell County Sheriff’s Department, the Charleston Police Department, the Putnam County Sheriff’s Department, the Ohio State Highway Patrol, the Akron, Ohio Police Department, and the Brecksville, Ohio Police Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Joseph F. Adams handled 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. 3:19-cr-00245.
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Bridgeport Gang Member Pleads Guilty to Racketeering and Witness Tampering ChargesRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that SHAKALE BRANTLEY, also known as “Charlie Wilson,” “Kellz,” and “Man Man,” 21, of Bridgeport, pleaded guilty today in New Haven federal court to racketeering and witness tampering charges.
According to court documents and statements made in court, the FBI, ATF, DEA, U.S. Marshals Service and Bridgeport Police have been investigating multiple Bridgeport-based gangs whose members are involved in narcotics trafficking, murder and other acts of violence. Wilson was a member of the Original North End (“O.N.E.”), a gang based in the Trumbull Gardens area of Bridgeport that committed acts of violence against rival gang, including the East End gang, the East Side gang, and the PT Barnum gang. O.N.E. members also robbed drug dealers, sold narcotics, laundered narcotics proceeds, stole cars from inside and outside Connecticut and used them to commit crimes, and tampered with witnesses who might testify against them.
On August 8, 2018, Brantley and other O.N.E. members stole a white Jeep Grand Cherokee in Newburgh, New York, and drove it back to Bridgeport. In the following days, Brantley conspired to use the car to kill East End gang members who he had learned through social media were at a deli on Stratford Avenue in Bridgeport. Although that plan fell through, in the early morning hours of August 13, 2018, O.N.E. members drove the stolen Jeep to Union Avenue in Bridgeport where they shot and killed Len Smith, 25, who they mistook for a rival East End group member, and shot and seriously wounded Smith’s female companion, both of whom were seated in a parked car. After the shooting, Brantley and other O.N.E. members transported the Jeep to Indian Wells State Park in Shelton where they burned the vehicle in an effort to destroy evidence of the murder.
In October 2018 in Bridgeport, and in November 2018 in Stratford, Brantley and other O.N.E. members and associates attacked a marijuana dealer and stole marijuana from him. After Brantley was arrested on federal charges on March 23, 2020, and while he was incarcerated, he attempted to solicit others to kill the victim of the marijuana robberies, who Brantley had learned had become a federal witness, in order to prevent Brantley’s prosecution for those offenses. Specifically, Brantley reached out by prison call to associates and by letters addressed to those associates in an effort to have his associates kill the robbery victim and then cover his nose with fentanyl to make it appear as if he overdosed.
In pleading guilty, Brantley also admitted that he distributed controlled substances, including heroin and marijuana.
Brantley pleaded guilty to one count of engaging in a pattern of racketeering activity and one count of solicitation of witness tampering. At sentencing, which is not scheduled, Brantley faces a maximum term of imprisonment of 35 years.
This ongoing investigation is being conducted by the FBI’s Safe Streets and Violent Crimes Task Forces, ATF, DEA, U.S. Marshals Service, Bridgeport Police Department, Connecticut State Police and the Bridgeport State’s Attorney’s Office, with the assistance of the U.S. Postal Inspection Service, Connecticut Forensic Science Laboratory and the Waterbury Police Department. The case is being prosecuted by Assistant U.S. Attorneys Rahul Kale, Jocelyn C. Kaoutzanis, Peter D. Markle and Karen L. Peck.
This prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN), Project Longevity and Organized Crime Drug Enforcement Task Forces (OCDETF) programs. PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it. 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.
Bradford, PA Man Pleads Guilty to Receiving Child PornographyRead the Press Release
ERIE, Pa. - A resident of Bradford, Pennsylvania, pleaded guilty in federal court to a charge of violating federal laws relating to the sexual exploitation of children, Acting United States Attorney Stephen R. Kaufman announced today.
Daniel Thomas Sutton, 33, 595 South Kendall Avenue, Bradford, Pennsylvania, pleaded guilty to one count before Senior United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Sutton received computer images and movies depicting minors engaging in sexually explicit conduct.Judge Cercone scheduled sentencing for November 22, 2021 at 2:00 p.m. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Sutton on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation that led to the prosecution of Sutton.